Business

Elston Company has entered into a lease agreement for office equipment which could be purchased for $39,927. Elston Company has, however, chosen to lease the equipment for $10,000 per year, payable at the end of each of the next 5 years. Calculate the implied interest rate for the lease payments.
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A media company has a high market share in the cassette tape market. The cassette tape market has low growth potential. This business fits into the ________ category of the BCG growth-market share matrix.
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For fiscal year 2016, Nancy calculated the following costs for Choco-ramas manufacturing process. Beginning work in process inventory, $22,655 Ending work in process inventory, $28,207 Beginning raw materials inventory, $42,385 Ending raw materials inventory, $44,299 Raw materials purchased, $387,521 Office supplies purchased and used, $15,274 388,400 man-hours of factory labor incurred at $23.60/hour 14,200 man-hours of factory oversight labor incurred at $28.75/hour Administrative salaries, $392,000 Factory utilities, $18,500 Factory depreciation, $9,700 Factory repairs, $15,400
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Assuming Net Income for the year is $230,000, what is the net cash flows from operating activities given the following information: Increase in Salaries Payable: $17,000 Depreciation Expense: $5,000 Increase in Prepaid Rent: $29,000 Loss on sale of asset: $1,150 Increase in Accounts Payable: $31,000 Increase in Inventory: $82,000a. $234,950 b. $242,450 c. $205,450 d. $324,050
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An organization in which there are a lot of formal rules, people are treated in animpersonal manner, jobs are carefully divided into specialized tasks, and employees must check with their supervisors before making decisions, hence feeling micromanaged, exemplifies:1. Theory X organization2. scientific management theory3. the application of a human relations approach4. contingency management theory
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Jenna Newbury began a music business in July 2018. Newbury prepares monthly financial statements and uses the accrual basis of accounting. The following transactions are Newbury Company's only activities during July through October: Jul 14 Bought music on account for $ 65, with payment to the supplier due in 90 days. Aug 3 Performed a job on account for Alanna Turner for $ 55, collectible from her in 30 days. Used up all the music purchased on July 14. Sep 16 Collected the $ 55 receivable from Turner. Oct 22 Paid the $ 65 owed to the supplier from the July 14 transaction. If Newbury Company uses the cash basis of accounting instead of the accrual basis, in what month will Newbury report revenue and in what month will it report expense?
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When a firm is able to produce nonstandardized (distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementing: a. a differentiation strategy. b. a cost leadership strategy. c. an integrated cost leadership/differentiation strategy. d. . a single-product strategy.
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The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient, the price of a securitysuch as a share of a particular corporations common stockshould be _________(equal to or more than) the present value estimate of the firm's expected cash flows discounted by its appropriate rate of return.
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Evan has received permission from his state to form a corporation for his startup, expecting his liability would be limited to the amount of his investment. But his bank asked him to assume personal liability before it would grant him a business loan. Why would the bank make this demand?
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How relevant are references when information about an applicant can be easily located through an online search of blogs, social networking sites, and news sources?
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The five-dollar Burger Joint gift card that your friend gave you for your birthday expires today. You can either use the gift card to buy yourself dinner at Burger Joint, or you can stay home and eat a delicious home-cooked meal. What is the opportunity cost of eating the home-cooked meal?a. The value of a five-dollar dinner at Burger Joint.b. The value of the ingredients that go into the home-cooked meal and the value of a five-dollar dinner at Burger Joint .c. There is no opportunity cost since you did not pay for the gift card.d. The time it takes to eat your home-cooked meal and the value of the five-dollar dinner at Burger Joint.e. The value of the ingredients that go into the home-cooked meal.
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Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $630,400 with 330,800 estimated direct labor hours. Deluxe widget production requires 4 direct labor hours for each unit, and regular widget production requires 6 direct labor hours for each unit.
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During 20X1, the Balboa Software Company incurred development costs of $2,000,000 related to a new software project. Of this amount, $400,000 was incurred after technological feasibility was achieved. The project was completed in the middle of the year and the product was available for release to customers on July 1. Revenues from the sale of the new software in 20X1 were $500,000 and the company anticipated future additional revenues of $4,500,000. The economic life of the software is estimated at four years. What amount of the software development costs would be capitalized in 20X1 (ignore amortization)
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In preparing financial statements, accountants should consider all of the following except: a. The objectives of financial reporting. b. The characteristics that make accounting information useful. c. The most useful way to display the information found on the financial statements. d. The presentation of the value of a company.
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Select all that apply.When using shared work areas, show consideration by:notifying the proper person when supplies are neededleaving empty coffee cups on the deskreturning equipment and tools to their proper placekeeping shared work areas neat
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Argument or Nonargument To focus on the performance of the stock market is to zero in on an economic indicator that can do well even as the country does poorly. In 2006, for instance, the Dow Jones industrial average hit highs. According to the just released census data, however, median earnings fell one percent, and millions more Americans entered the ranks of the uninsured. Indeed, from 2000 to 2007 the S&P 500 gained more than 500 points. Meanwhile, the median household income fell by more than $900.
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If a firm sells 40,000 units and the contribution margin on the firm's single product is $4.00 per unit and fixed costs are $60,000, what will the firm's operating profit be at this level of sales volume?
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A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 12%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices. (Round your answers to 2 decimal places.)a.Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $940. Bond equivalent yield to maturity % Effective annual yield to maturity % b.Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,000. Bond equivalent yield to maturity % Effective annual yield to maturity % c.Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,040. Bond equivalent yield to maturity % Effective annual yield to maturity %
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Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense: a. Cash received for use of land next month b. Fees earned but not received in cash c. Wages owed but not yet paid d. Supplies on hand
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ACME Corp. managers lack the will and resources to develop international marketing strategies but are happy when their company's products are purchased by a(n) _______, which then sells them internationally.
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Ronnie, the advertising manager of a leading newspaper, congratulates every member of the space selling team who achieves his or her daily target. This motivates the team members to work harder and collectively contribute to the organizational goal of selling space for advertisements. In this scenario, which of the following management functions is illustrated by Ronnie? A) Organizing B) Planning C) Leading D) Controlling
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Suppose that there are only three consumers of a product. At a price of $3 per unit, the first consumer would buy 6 units of the product, the second consumer would buy 5 units, and the third consumer would buy 7 units of the product. If you drew a market demand curve for this product, the quantity demanded at a price of $3 would be:
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which is correct? gross pay - deductions = net pay net pay + deductions = gross paygross pay + deductions = net pay net pay- deductions = gross pay
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Multidomestic corporations ________.a. attempt to replicate their domestic successes by managing foreign operations from the home countryb. maintain operations in multiple countries, but do not allow managers in each country to make their own decisionsc. reflect ethnocentric attitudesd. decentralize management and other decisions to the local country
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