Answer: A. No capital gain or loss
Explanation:
From the question, we are informed that a customer buys $100,000 of 30 year corporate bonds with 20 years remaining to maturity at 95 and that the customer elects not to accrete the discount annually.
At maturity, the customer will have no capital gain or loss. This is because, in this case, the bond has already been held to maturity and discount have therefore been accreted. There won't be capital loss or gain since the bond will noe to redeem at par.
Which statement is true of employee empowerment? A) Managers should ensure that employees are not linked to resources outside the organization, such as customers. B) Jobs must be designed to give employees the necessary latitude for making a variety of decisions. C) Employee empowerment shifts the recruiting focus away from cognitive and interpersonal skills toward general technical skills. D) Employee empowerment prevents holding employees accountable for the products and services they developed. E) Proper training must be provided only to supervisors so that they can exert their wider authority.
Answer:
B) Jobs must be designed to give employees the necessary latitude for making a variety of decisions.
Explanation:
The employee empowerment aims to provide resources and skills necessary for employees to have freedom and make their own decisions.
The organizational structure of a company will directly influence how employees are motivated or not to make certain decisions. In companies with a horizontal organizational structure, which is more flexible, there is an incentive for employees to make their decisions, which is a process that encourages innovation, engages employees, makes employment more motivating and valued, reduces response time of a decision and makes the decision-making process less bureaucratic and rigid.
A portfolio with a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%. This portfolio had a Sharpe ratio of ____.
Answer: 0.3
Explanation:
The Sharpe ratio is simply used by organizations and investors in order to compare the return on an investment to its risk.
From the question, we are informed that a portfolio has a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%.
The Sharpe ratio will be:
= (15% - 6.0%)/30%
= 9%/30%
= 0.09/0.3
= 0.3
Donna, a single taxpayer, purchased an antique rug for $20,000 on April 1, 2015. On November 8, 2019, she sold the rug for $25,000. Donna's 2019 taxable income is $185,000, so her marginal tax rate is 32%. Donna's gain on the sale of the rug will be taxed at a rate of:_______ a. 15% b. 20% c. 28% d. 32%
Answer:
a. 15%
Explanation:
Donna'a gain should be considered a long term capital gain because she "invested" in an antique rug that she was able to sell later with a gain. Since the holding period was longer than a year, it is considered a long term capital gain. Donna's tax rate is 15% since her AGI is less than $434,550 (in 2019).
What would be included in the entry to record actual Manufacturing Overhead costs incurred in a process department?
Answer:
debit to manufacturing overhead.
Explanation:
When a product is manufactured, some costs are associated with the production processes. These costs are indirect costs which includes but not limited to; depreciation, rent of buildings, salaries(maintenance and managers) , wages, utilities for the factory etc. Manufacturing overhead consist of all production costs except direct material and labor.
With regards to the above, when actual manufacturing overhead costs(machine maintenance, supervisor salary, factory utilities) are incurred in a given period, they are recorded as debit in the manufacturing over head account while the credit entry goes to account payable.
Motor vehicle services technicians usually must provide their own tools as part of their employment. These tools are the property of the technician, and service technicians generally receive an hourly wage. Some automobile dealerships split service technician wages into classifications such as tool reimbursements and wages. The result of this practice is that workers’ hours are taxed and the tool reimbursements are not because they are classified as a business expense. Should the tool reimbursement be treated as income on the service technicians W-2? Why or why not? What are some implications of this practice
Answer:
the tool reimbursements should not be treated as income on the service technicians.
Explanation:
Any Reimbursement cannot be taxed because there is no income generated if actual reimbursement is made. So in the given case Tools Reimbursement received by the Technicians are not taxable because it is the amount spend by them for providing the service and actual reimbursement is made. No income has been generated in this.
This practice will reduce the income of the government by two side. One is on the side of the company we are allowing them with a business expenses thereby reducing their tax liability by reducing the profits and other is the same cannot be charged to tax from the side of the worker because it is just a mere reimbursement of actual expenses.
Treasury bonds paying an 8% coupon rate with semiannual payments currently sell at par value. What coupon rate would they have to pay in order to sell at par if they paid their coupons annu- ally? (Hint: What is the effective annual yield on the bond?)
Answer: 8.16%
Explanation:
The Effective Annual Yield is the interest rate that converts an interest rate that compounds more than once a year to an annual rate.
Expressed by;
= (1 + interest/number of times compounded per year)^n - 1
= ( 1 + 0.08/2)^2 - 1
= 1.0816 - 1
= 8.16%
Copper, Inc., initially issued 100,000 shares of $1 par value stock for $500,000 in 2013. In 2015, the company repurchased 10,000 shares for $100,000. In 2016, 5,000 of the repurchased shares were resold for $80,000. In its balance sheet dated December 31, 2016, Copper, Inc.’s Treasury Stock account shows a balance of:a. $ 0b. $ 20,000c. $ 50,000d. $100,000
Answer:
c. $50,000
Explanation:
Dr Cash 500,000
Cr Common stock 100,000
Cr Additional paid in capital 400,000
Dr Treasury stock 100,000
Cr Cash 100,000
Dr Cash 80,000
Cr Treasury stock 50,000
Cr Additional paid in capital 30,000
Treasury stock's balance = $100,000 - $50,000 = $50,000 debit
Generally, State A may exercise "long arm" jurisdiction over a defendant located in State B if the defendant:________. a. once resided in State A. b. uses a product produced in State A. c. made a contract in State A. d. has relatives in State A.
Answer:
c. made a contract in State
Explanation:
Jurisdiction is the ability of a court to sue a person and ask him to come to court. Of a court does not have a jurisdiction on a person they will not be able to issue a judgement on that person.
Long arm jurisdiction is one that enables a court prosecute a person that does not reside in the state.
However the person must have sufficient minimum contact in the state to enable the state prosecute him.
For example if a person makes a contract in a state and violates that contract, the state can prosecute him even if he lives in another state.
Evaluating the competitive value of the cross-business strategic fits in a diversified firm's business portfolio entails consideration of:___________.
a. whether the competitive strategies in each business possess good strategic fit with the parent company's corporate strategy.
b. whether the parent's company's strongest competitive synergies are being deployed to maximum advantage in each of its business units.
c. how much competitive value can be generated from forceful efforts to capture the benefits of strategic fits stemming from cross-business transfer of competitively valuable resources and capabilities, cost-saving efficiencies in the value chains of sister businesses, brand- name sharing, and cross-business collaboration to create new performance-enhancing competitive capabilities.
d. whether the competitive strategy employed in each business acts to reinforce the competitive power of the strategies employed in the company's other businesses.
e. how compatible the competitive strategies of the various sister businesses are and whether these strategies are optimally crafted to achieve the same kind of competitive advantage and thereby enhance the diversified company's overall performance.
Answer:
c. how much competitive value can be generated from forceful efforts to capture the benefits of strategic fits stemming from cross-business transfer of competitively valuable resources and capabilities, cost-saving efficiencies in the value chains of sister businesses, brand- name sharing, and cross-business collaboration to create new performance-enhancing competitive capabilities.
Explanation:
To carry out the evaluation of the competitive value of the cross-business strategic fits in a diversified firm's business portfolio, the firm should assess and analyze the competitive value to be derived from the undertakings in a bid to takeover the advantages of strategic fits of cross business transfer.
Hence, in this case, the correct answer is option C, as it fully details what needs to be considered.
Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (10,000 units) Production costs (13,000 units): $1,000,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead $481,000 231,400 115,700 76,700 904,800 Selling and administrative expenses: Variable selling and administrative expenses $140,200 Fixed selling and administrative expenses 54,300 194,500 If required, round interim per-unit calculations to the nearest cent. Required:Prepare an income statement according to the absorption costing concept.
Answer:
Shawnee Motors Inc.
Income Statement
For the month ended August 31, 202x
Sales revenue $1,000,000
- COGS ($696,000)
Gross profit $304,000
S&A expenses:
Variable S&A expenses $140,200 Fixed S&A expenses $54,300 ($194,500)Operating profit $109,500
Explanation:
Sales (10,000 units) $1,000,000
Production costs (13,000 units):
Direct materials $481,000Direct labor $231,400Variable factory overhead $115,700Fixed factory overhead $76,700 Total production costs $904,800Selling and administrative expenses:
Variable selling and administrative expenses $140,200 Fixed selling and administrative expenses $54,300 Total S&A expenses $194,500COGS = (10,000 / 13,000) x $904,800 = $696,000
United services automotive association is one of the largest diversified financial. What are the highest paying jobs at United Services Automobile Association?
Answer with Explanation:
According to theladder, the average pay in the United Services Automotive Association is $132,957 and the highest paying jobs are mostly taken by the CFA candidates. The highest paying job includes:
Risk Analyst is the one who analyzes the risk that the investment of the company is bearing and the relevant actions are proposed by the person. Director of Risk Management is assigned the task to manage a team of risk management team by continuous assessment of the performance of the team members, setting deadlines for achievement of tasks, formation of policies and procedures, etc.Product Owner who is responsible for managing the product backlog and setting a standard levels and designing policies for developing products.The junior level jobs usually pay somewhat between $80k to $100k which means that all the jobs in USAA are very highly paid jobs in the country.
So if you are offered a position take it and save enough to start your own business in the future.
"A customer owns an ABC Call option. ABC declares a dividend for shareholders on record July 10th. The last day to exercise the option and get the dividend is:"
Answer: July 7th
Explanation:
Call options are simply financial contracts whereby the option buyer is not obliged but has the right, to purchase bond, stock, asset or a commodity at a particular price and time.
It should be noted that before ABC declares a dividend for shareholders on record July 10th, the last day to exercise the option and get the dividend will be 3 days earlier which will be July 7th.
If increasing the admission charge for National Parks increases the National Park Service's total revenue, then the demand for National Park visits is: Multiple Choice inelastic. elastic. perfectly elastic. a perfectly horizontal line.
Answer: inelastic
Explanation:
If increasing the admission charge for National Parks increases the National Park Service's total revenue, then the demand for National Park visits is inelastic.
This shows that a change in price will lead to a minimal change in the quantity demanded by the consumers. Even though price was increased, the number of visitors to the park rarely changed. This will lead to increase in revenue.
Amounts received in advance from customers for future products or services:_______a) Are revenues. Increase income. b) Are liabilities. c) Are not allowed under GAAP. d) Require an outlay of cash in the future.
Answer:
The answer is B. Liabilities
Explanation:
This is known as deferred revenue and Deferred Revenue is being treated as liability.
Even though, the money for the service or product has been received, the service to be rendered or the goods to be delivered is still in the future. And because it will be enjoyed by the customer in the near future, it is being treated as a liability.
Which of the following securities can be sold by an individual holding an investment companies/variable annuities (Series 6) registered representative's license?
I. Municipal Investment Trusts
II. Real Estate Investment Trusts
III. Municipal Bond Funds
IV. Revenue Bonds
Answer:
I and III only
I. Municipal Investment Trusts
III. Municipal Bond Funds
Explanation:
In Series 6, securities license entitles holders to register as a company's representative and enables the holder to sell certain types of mutual funds, variable annuities and even insurance. In Series 6, individual sell or buy some mutual funds, variable life insurance, municipal fund securities, etc. They are not authorized to sell corporate securities, etc.
After the USA introduces a tariff in the market for gigastraps, the price of gigastraps in the USA will:
Answer: increase
Explanation:
A tariff is a tax that is levied on goods that are imported into a particular country. It should be noted that tariffs are levied on order to prevent dumping, protect the host indutries and also prevent consumption of harmful products.
If the USA introduces a tariff in the market for gigastraps, the price of gigastraps in the USA will increase. This is because the tariff will be added as production cost to the producer which will lead to increase in price.
Decker's is a chain of furniture retail stores. Furniture Fashions is a furniture maker and a supplier to Decker's. Decker's has a beta of 1.34 as compared to Furniture Fashion's beta of 1.14. The risk-free rate of return is 3.6 percent and the market risk premium is 8 percent. Both firms are all equity financed. What discount rate should Decker's use if it considers a project that involves the manufacturing of furniture?
Answer:
14.32%
Explanation:
According to the CAPM :
rate of return = risk free rate + (beta x market risk premium)
3.6% + 1.34 x 8% = 14.32%
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:_______.
Restin, Los Angeles Bay Area Central Valley
Inc. Division Division Division
Revenues $ 1,000,000 $ 280,000 $ 315,000 $ 405,000
Variable operating expenses 554,000 154,000 170,000 230,000
Controllable fixed expenses 240,000 75,000 85,000 80,000
Noncontrollable fixed expenses 90,000 25,000 30,000 35,000
In addition, the company incurred common fixed costs of $21,000.
The profit margin controllable by the Central Valley segment manager is:_______.
Answer:
The profit margin controllable by the Central Valley segment manager is: $ 95,000.
Explanation:
Only items directly controllable by the Manager should be included in the divisional financial performance measure.
Central Valley Division
Revenues $ 405,000
Less Variable Costs :
Variable operating expenses ($ 230,000)
Controllable Contribution $ 175,000
Less Controllable fixed expenses ($80,000)
Controllable Profit $ 95,000
Which of the following statements is CORRECT, assuming positive interest rates and holding other things constant?
a. The present value of a 5 year, $250 annuity due will be lower than the PV of a similar ordinary annuity. b. A 30-year, $150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage.
c. A bank loan?s nominal interest rate will always be equal to or greater than its effective annual rate.
d. If an investment pays 10% interest, compounded quarterly, its effective annual rate will be greater than 10%.
e. Banks A and B offer the same nominal annual rate of interest, but A pays interest quarterly and B pays semiannually. Deposits in Bank B will provide a higher future value if you leave your funds on deposit.
Answer: d. If an investment pays 10% interest, compounded quarterly, its effective annual rate will be greater than 10%.
Explanation:
Effective annual interest rate = (1 + (nominal rate / number of compounding periods)) ^ (number of compounding periods) - 1)
= (( 1 + ( 10% / 4)) ^ 4) - 1
= 10.38%
10.38% > 10%
1
2
A business plan is a document describing the start-up costs and operating expenses of a new business.
Please select the best answer from the choices provided
OT
OF
False jus took the test .
Which of the following is true regarding externalities? Group of answer choices Externalities can only be corrected with government regulation. Externalities always involve external costs. Externalities occur when the actions of an individual or group spill over onto others, without their consent. Externalities generally enhance the rate of economic growth.
Answer: Externalities occur when the actions of an individual or group spill over onto others, without their consent.
Explanation:
By definition, an Externality is the effect of an action by an individual or group that spills over onto third parties without their consent.
Externalities can be either negative or positive. A positive externality for instance would be bees from a bee farm pollinating flowers in the environment.
A negative externality would be air pollution from China for instance contributing to global warming effects experienced in Northern Africa.
Micca ensures that all of her employees understand and follow through on the
expectations set by the business. Which technique for building positive customer
relations in Micca using?
Understand that each customer has unique needs
Set and achieve high standards
Provide quality service
Listen to and engage your customers
Answer:
Set and achieve high standards
Explanation:
Micca makes sure that all of her employees understand and follow through with the expectations set by the business and the technique for building positive customer relations that Micca uses is Set and achieve high standards.
This technique means that if a high enough standard is set and achieved by a business, then it will promote positive customer relations because the customers will be getting value for money.
The present value of the following cash flow stream is $6200 when discounted 9% annually. What is the value of the missing cash flow?
a) Year 1- $1300
b) Year 2- ?
c) Year 3- $1950
d) Year 4- $2640
Answer:
Cash flow year 3= $1,938.2
Explanation:
Giving the following information:
PV= $6,200 when discounted 9% annually.
Cf:
a) Year 1- $1300
b) Year 2- ?
c) Year 3- $1950
d) Year 4- $2640
To calculate the missing cash flow, we need to use the following formula:
NPV= ∑[Cf/(1+i)^n]
6,200= 1,300/1.09 + x + 1,950/1.09^3 + 2,640/1.09^4
6,200= 1,192.66 + x + 1,505.76 + 1,870.24
Year 3 (PV)= 1,631.34
Cash flow year 3= 1,631.34*1.09^2
Cash flow year 3= 1,938.2
The entry to record the flow of direct labor costs into production in a job order cost accounting system is to
Answer:
Debit : Work In Process Account and Credit : Salaries and Wages Payable Account
Explanation:
All manufacturing costs are accounted for in a Work in Process Account during manufacture. Therefore Debit the Work In Process Account to show accumulation of the manufacturing costs and Credit the Salaries and Wages Payable Account to show the utilization of labor.
Bond appraisals are used in the municipal secondary market because:_______. I the market is thin II the market is active III trades are reported to a consolidated tape IV trades are not reported to a consolidated tape
A. I and III B. I and IV C. II and III D. II and IV
Answer: B. I and IV
Explanation:
An appraiser bond is simply an insurance form that is bought by appraisers which indicates total compliance with the regulations and the laws in their field.
Bond appraisals are used in the municipal secondary market because the market is thin and trades are not reported to a consolidated tape.
When the cost method is used to account for a stock investment the carrying value of the investment is affected by
Answer: b. neither the earnings nor the dividends of the investee.
Explanation:
When the cost method is used to account for a stock investment, it means that in the books, the stock is to be recorded at the price it was purchased for.
This means that even if earnings and dividends accrue on the stock, it is not to change in value but should stay being recorded at the price it cost to acquire.
Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE
Answer:
13.56%
Explanation:
For the computation of return in equity first we need to follow some steps which are shown below:-
D/A = Debt ÷ Total assets
Debt = $200,000 × 65%
= $130,000
Interest expense = $130,000 × 8%
= $10,400
Total assets = Total liabilities + Total equity
Total equity = $200,000 - $130,000
= $70,000
Net income = (EBIT - Interest expense) × (1 - Tax rate)
= ($25,000 - $10,400) × (1 - 0.35)
= $9,490
ROE = Net income ÷ Equity
= $9,490 ÷ $70,000
= 13.56%
Washington Company is preparing its statement of cash flows using the indirect method. Refer to the following portion of the comparative balance sheet: Washington Company Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increase/(Decrease) Accounts Payable $9,000 $5,000 ($4,000) Accrued Liabilities 3,000 1,400 1,600 Long=term Notes Payable 55,000 66,000 (11,000) Total Liabilities $67,000 $72,400 $(5,400) Additional information provided by the company includes the following: 1. During 2019, the company repaid $35,000 of long-term notes payable. 2. During 2019, the company borrowed $24,000 on a new long-term note payable. Based on the above information only, what amount of net cash flow would be shown in the financing section of the statement of cash flows?
Answer:
Washington Corporation
Financing Activities Section of the Statement of Cash Flows for the year ended December 31, 2019 will show a net cash flow of:
($11,000)
Explanation:
a) Data and Calculations:
Washington Company Comparative Balance Sheet December 31, 2019 and 2018:
2019 2018 Increase/(Decrease)
Accounts Payable $9,000 $5,000 ($4,000)
Accrued Liabilities 3,000 1,400 1,600
Long-term Notes Payable 55,000 66,000 (11,000)
Total Liabilities $67,000 $72,400 $(5,400)
Repaid $35,000 of long-term notes payable
Borrowed $24,000 on new long-term notes payable
b) Financing Section:
Repayment of Long-term notes ($35,000)
Borrowing from Long-term notes 24,000
Net cash flow from financing ($11,000)
Panjim began 2015 with salaries payable balance of $75,000. It had 2015 salary expense of $80,000. Its 2015 ending salaries payable balance must be______.
a. $95,000.
b.
$55,000.
c.
$155,000.
Answer:
c. $155,000
Explanation:
The computation of the ending balance of salaries payable is shown below:
= Beginning balance of salaries payable + salary expense - payment made during the year
= $75,000 + $80,000 + $0
= $155,000
By applying the above formula, we can determined the ending balance of salaries payable and the same is to be considered
hence, the correct option is c.
if a business with several branches did not maintain a system of branch account, what financial control element would be missing?
Answer:
Branch Performance Evaluation will be missing in such a system as the performances of the several branches cannot be determined or compared.
Explanation:
Branch performance evaluation is the sum of all the control and productive procedures to measure the activities of branches and the results they produce based on their activities and responsibilities for the corporate resources at their disposal. This branch-wide performance evaluation becomes the missing link, assuming that branches exercise some internal controls on their own.