In an operating lease in which the asset's economic life and lease term are different: The lessee depreciates the asset over its economic life.
What makes a lease an operating lease?
An operating lease is a legal arrangement that allows the use of property without changing who owns it. Operating lease accounting is governed by GAAP guidelines. All leases with terms longer than 12 months must be recorded on the balance sheet, according to a new FASB regulation that took effect on December 15, 2018.
Which lease is a long term that is not cancellable and its life often matches the useful life of the asset?
When a lessor agrees to transfer ownership rights to the lessee once the lease term is over, this is known as a capital lease. Long-term and irrevocable are the characteristics of capital or finance lease.
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If the marginal benefit of the first donut is 30 , the marginal benefit of the second donut is 15, and the marginal benefit of the third donut is 10, what is the total benefit from eating 2 donuts?.
The total benefit from eating 2 donuts is 45.
What Does Marginal Gain Mean?A consumer's utmost willingness to pay for an additional commodity or service is known as the marginal benefit. It also refers to the additional pleasure or utility that a customer experiences after purchasing the extra commodity or service. As a consumer consumes more of a good or service, their marginal benefit tends to drop.
The term "marginal revenue" is frequently used in the business world to describe the manufacturers' marginal gain.
Calculation:
The extra enjoyment attained from eating one more unit of the good is referred to as a marginal benefit. It alludes to the benefit brought on by consuming one additional unit of a good. Total satisfaction obtained from using products and services is the overall gain.
The combined advantages of eating the first two doughnuts equal the benefits of eating two doughnuts.
= 30 +45
=45.
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Market competition can provide _______________ for _________________ , unsustained profits; firms with marketable patents the needed incentive; discovering new technologies time; competitors to catch up with other's inventions an opportunity; competitors seeking out innovations
An incentive; discovering new technologies
Market competition can provide incentives for discovering new technologies, unsustained profits; firms with marketable patents.
Market competition - the competition between businesses supplying comparable goods and services. Consumer rivalry is fueled by a competitive market. This implies that consumers compete with one another for a good or service, particularly when stock is low. For instance, when buying tickets to a sporting event or concert, customers frequently compete to get the best seats. Market competition is essential to the health of the American economy. Economic fundamentals show that when businesses compete for customers, the result is lower pricing, better goods and services, more variety, and more innovation.
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You are considering purchasing a car, and you are offered a loan with a nominal interest rate of 5 %. Assume inflation is expected to average 2 % over the life of the loan. What is the real interest rate
The real interest rate is;
Real interest rate = nominal interest rate - inflation
What is inflation?The rate at which prices increase over a specific time period is known as inflation. Inflation is often measured in broad terms, such as the general rise in prices or the rise in a nation's cost of living.
There are three main causes of inflation:
demand-pull inflation: Demand-pull inflation, which economists define as "too many dollars chasing too few things," is the increasing pressure on prices that accompanies a scarcity in supply.cost-push inflation: When the cost of labor and raw materials rise, the overall price level will rise (inflation).built-in inflation: As employees anticipate an increase in compensation when the cost of products and services rises in order to maintain their standard of living, this is known as built-in inflation.What is real interest rate?A real interest rate reflects the rate at which current things are preferred over future goods over time.
The difference between the nominal interest rate and the inflation rate is used to calculate the real interest rate for an investment.
Real interest rate = nominal interest rate - rate of inflation (expected or actual).
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When a breach of contract results in no tangible harm to a non-breaching party, it can receive __________ damages from the breaching party.
When a breach of contract results in no tangible harm to a non-breaching party, it can receive nominal damages from the breaching party.
What is breach of contract?Breach of contract is when one of the party to a contract is unable to perform his or her terms of the contract. A contract is meant to satisfy the reasons for which the contract was gone into for both parties.
Elements of breach of contract are :
The existence of a contract.Performance by the plaintiff or some justification for nonperformance.Failure to perform the contract by the defendant.Resulting damages to the plaintiff.Learn more about breach of contract here: https://brainly.com/question/1184001
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50 percent of your potential customers would be willing to buy your product for $16 each, but the other 50 percent would be willing to pay no more than $10. HINT: In other words, we can say that: For any random customer that happens to walk into your store, there is a 50 percent chance that that customer will pay the full $16, versus a 50 percent chance that that customer will only be willing to pay $10. Unfortunately, you cannot tell your customers apart. Your marginal cost per unit, PER SALE is $4. HINT: To clarify further, you should assume that the marginal cost of $4 per sale is ONLY incurred if a sale is actually made. (In other words, we'll assume that if you do not make a given sale, then you don't get any revenue, but you also don't recognize any cost, so profit is zero in that scenario.) If you set the selling price of each unit at $16, the expected profit per customer is:_________.
If you set the selling price of each unit at $16, the expected profit per customer is: $6.
Expected profitUsing this formula
Expected profit=Lowest amount willing to pay-Marginal cost
Where:
Lowest amount willing to pay=$10
Marginal cost=$4
Let plug in the formula
Expected profit=$10 - $4
Expected profit= $6
Therefore if you set the selling price of each unit at $16, the expected profit per customer is: $6.
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What are the best ways that a firm can reduce the threat of imitation?
A firm can reduce the threat of imitation by following the Principles of defensive strategies.
Defensive strategies includes the courage to attack our potentials by asking questions again and again and eliminating the old ones to introduce new options.
Defensive strategies also include an initial investment. Defensive strategies consist of amassing the greatest skills nd strengths of the attacker. The firm must also manage the speed of the action taken by it.
Imitation could also be reduced by increasing the strategic complexity and creating a threat of retaliation.
Meaning of imitation is the act of un authorized copying of the competitor's technology.
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Which of the following theories holds that multiple leadership variables determine the probability that leadership will occur, including the qualities of a leader, the characteristics of followers, and the nature of a situation
Leadership contingency theory is the theory that holds that multiple leadership variables determine the likelihood that leadership will occur, including the qualities of a leader, the characteristics of followers, and the nature of a situation.
What is leadership contingency theory?It is an approach to the relationship between leadership styles and organizational structure, that is, an effective leader is one who aligns his management style with the place where he operates and his needs, in order to develop control, organization and cooperation. to achieve organizational objectives.
An effective leader will be one whose actions will serve as a reflection for the actions of his subordinates, who must practice ethical and responsible actions in favor of motivating and improving the perception of employees in relation to their functions and the company.
The leadership style must promote cooperation, feedback, communication and the creation of an organizational culture focused on the development of employee skills.
Therefore, according to contingency theory, a good leader is one who has a comprehensive view of the organizational systems he manages, providing support for the development, motivation and productivity of his team.
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When a bond sells at a premium, interest expense will be:
The Treasury yield curve is Downward sloping. Empirical data indicate that a positive maturity risk premium applies to both Treasury and corporate bonds. Empirical data also indicate that there is no liquidity premium for Treasury securities but that a positive liquidity premium is built into corporate bond yields. Which of the following is not necessarily correct
A 5-year corporate bond must have a higher yield than a 10-year Treasury bond.
What do you understand by corporate bond?
A firm can raise funds by issuing debt in the form of corporate bonds. Corporate bonds can be actively traded on the secondary market, but when an investor purchases one, they are making a loan to the company in exchange for several interest payments.
What do you mean by Treasury Bond?
Treasury bonds (sometimes known as T-bonds) are fixed-rate debt instruments issued by the US government, with maturities ranging from 10 to 30 years. T-bonds offer semi-annual interest payments up until maturity when the owner is given the bond's face value.
Why do corporate bonds have a higher yield than Treasury bonds?
Since corporate bonds carry a risk of default but Treasury bonds are guaranteed if held to maturity, corporate bonds often have a higher yield than Treasury bonds.
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Although it does not explicitly endorse traditional gender roles, which sociological perspective implies that dividing tasks between spouses is beneficial for the family unit
The functionalist perspective is the sociological perspective that implies that dividing tasks between spouses is beneficial for the family unit even though it does not explicitly endorse traditional gender roles.
What is a functionalist perspective?This refers to the social view that our society is a relatively stable and orderly system composed of interdependent and interrelated parts
The key points about functionalist perspective are:
It view social change as a strain on the systemIt attempts to explain social stability.Hence, because the Functionalists believe that society is held together by social consensus where members of the society agree upon and work together to achieve, then, it is the sociological perspective that implies that dividing tasks between spouses is beneficial for the family unit even though it does not explicitly endorse traditional gender roles.
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If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
a. 5 workers
b. 4 workers
c. 3 workers
d. 2 workers
Option D. If the wage rate should decrease from $17 to $13, the firm is going to expand by a total of 2 workers.
What is the wage rate?This can be defined as the amount of money that is used to pay for labor. The wage rate is the base wage that is paid to a worker at a time based on the unit of work that they have done in an establishment. It is the amount that is paid based on a person's output.
How to solve for the wage rateWe have to solve for the expanse in employment by first considering the rate that is to be paid for an extra unit of labor
Hence if the firm should decrease wage rate the number of workers that would be available at 17 dollars = 6 workers
At 13 dollars = 4 workers
Hence the change would be solved as
6 workers - 4 workers
= 2 workers
Hence we have to conclude that the firm would have to expand labor by a total of two workers.
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Income from long-term investments in equity securities with significant influence is reported in the earnings from equity method investment account. this account is a temporary account, closed to the?
Income from long-term investments in equity securities with significant influence is reported in the earnings from equity method investment account. this account is a temporary account, closed to the income summary account.
At the conclusion of an accounting period, all revenue and expense accounts from the income statement are moved into a temporary account called the income summary account.
The business's net profit or loss for the period is equal to the net amount placed into the income summary account.
Debiting the revenue account for the whole amount of revenue recorded for the period and crediting the income summary account are the results of shifting revenue out of the income statement.
Similarly, to remove expenses from the income statement, one must debit the income summary account and credit all of the expense accounts with the total amount of expenses incurred during the period. Utilizing the income summary account begins with this action.
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Given equal amounts of alcohol and an equal rate of drinking, every woman's intoxication rate will rise faster than every man's.
a) true
b) false
Option A. This is true. Given equal amounts of alcohol and an equal rate of drinking, every woman's intoxication rate will rise faster than every man's.
What is intoxication?This is the term that is used to refer to the ability of alcohol to affect the mood and the emotions of a person in such a way that it would depress the central nervous system of the person that is involved.
The rate of the intoxication of the female is going to be higher because research has shown that the gender of a person is a deciding factor on intoxication. It is higher for the females. Hence Given equal amounts of alcohol and an equal rate of drinking, every woman's intoxication rate will rise faster than every man's.
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Employees at LivingSocial Escapes who are motivated by the belief that taking people on trips is a worthwhile endeavor are motivated by rewards, whereas motivation that occurs as a result of receiving compensation for a successful trip illustrates the effects of rewards.
Employees at LivingSocial Escapes who are motivated by the belief that taking people on trips is a worthwhile endeavor are motivated by intrinsic rewards, whereas motivation that occurs as a result of receiving compensation for a successful trip illustrates the effects of extrinsic rewards.
What are intrinsic and extrinsic rewards?
Intrinsic rewards can be regarded as the reward that originate from within the person, while extrinsic rewards comes from something beyond the person.
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Money demand is given by md/p = 1000 .2y - 1000i. given that p = 200, y = 2000, and i = .10, real money demand is equal to?
The real money demand is equal to $2,60,000
Money demand/ P = 1000+0.2Y -1000i
Money demand/200= 1000+0.2(2000)-1000(0.1)= 1000+400-100
=1300
Money demand /200 = 1300
Money demand = $1300*200
= $2,60,000
Money demand is the demand for real cash balances as people hold onto money to purchase goods and services. The higher the price level, the more money you need to buy a certain amount of goods.
For example, Margie keeps cash in her purse so she can buy groceries, which she does every week. The more cash you always have in your wallet, the less time you spend going to the bank, standing in line, and withdrawing more cash.
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There are five steps in the KPMG Professional Judgment Framework: (1) Consider alternatives, (2) Reach conclusions, (3) Gather and evaluate information, (4) Articulate and document rationale, and (5) Clarify issues and Objectives. What is their correct order of implementation
There are five steps in the KPMG Professional Judgment Framework
1-Clarify issues and objectives2-Consider alternatives3-Gather and evaluate information4-Reach a conclusion5-Articulate and document rationaleBetter decisions can be made by taking into account the fact that other judgment frames and different points of view exist, having many judgment frames increases an auditor's professional skepticism.Professional judgment is the process of making decisions or drawing conclusions based on pertinent training, information, and experience when analyzing the facts, calculating probabilities, or deciding between alternatives.What is the process of judgement?A court's decision known as a judgment establishes each party's rights and obligations in order to resolve a dispute between two parties. In personam, in rem, and quasi in rem judgments are the three categories. Although they can also be non-monetary, judgments must be enforceable by law.Learn more about KPMG Professional Judgment Framework brainly.com/question/27312485
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Undercapitalization refers to the problem of: Group of answer choices insufficient funds to operate a business normally. inadequate control of expenses. inappropriate cash flows. undervalued capital stock.
Insufficient funds to operate a business normally.
Undercapitalization refers to the problem of insufficient funds to operate a business normally.
What is undercapitalization?
When a business lacks the money necessary to carry out routine operations and make creditor payments, undercapitalization occurs. This may happen if a company's cash flow is insufficient or if it is unable to obtain financing through debt or equity.
Additionally, undercapitalized businesses are more likely to favor high-cost capital sources like short-term loans over low-cost alternatives like equity or long-term debt. Investors should exercise caution if a company is undercapitalized since the likelihood of bankruptcy rises when a company is unable to pay its debts in full.
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An advantage of the partnership form of business organization is:
Advantages of a partnership consist that: two heads (or greater) are better than one. Your business is simple to establish and begin-up fees are low. more capital is to be had for the enterprise.
A partnership business is straightforward to shape since very minimum prison approaches are required. A partnership enterprise has a limitless liability, which influences the financial assets of the companions. The partnership may be without problems dissolved on insolvency retirement or loss of life of an associate, and no felony procedures are required.
The advantages of a partnership are more control abilities, more possibility of retaining equipped workers, more sources of financing, ease of formation, and freedom to control.
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Which concept suggests that decision makers are limited by their values and unconscious reflexes, skills, and habits?
A concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits is called bounded rationality.
Bounded rationality is considered the idea that rationality is limited when individuals make decisions. Thus, under these limitations, such rational decision makers are limited by their values and unconscious reflexes, skills, and habits and they will make a decision which is satisfactory rather than optimal.
For instance, an individual could be exhibiting rational behavior if she is retiring early rather than staying at the company and earning a paycheck if she feels the utility gained from retiring early exceeds that of the paycheck.
Hence, the answer was given and explained above.
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Fundamentally, economics deals with:______.
a. banking.
b. poverty.
c. money.
d. scarcity.
Fundamentally, economics deals with scarcity. Assuming humans have unlimited wants within a world of limited means, economists analyze how resources are allocated for production, distribution, and consumption. The study of microeconomics focuses on the choices of individuals and businesses, and macroeconomics concentrates,
On the behavior of the economy as a whole, on an aggregate level. One of the earliest recorded economists was the 8th-century B.C. Greek farmer and poet Hesiod who wrote that labor, materials, and time needed to be allocated efficiently to overcome scarcity. The publication of Adam Smith's 1776 book,
An Inquiry Into the Nature and Causes of the Wealth of Nations sparked the beginning of the current Western contemporary economic theories.
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You just started to work remotely. You asked your boss for a schedule of when you are remote versus required onsite, and you have been assigned a buddy to help you. This is an example of _____.
You just started to work remotely. You asked your boss for a schedule of when you are remote versus required onsite, and you have been assigned a buddy to help you. This is an example of onboarding.
Onboarding” refers to the process by which a new employee is integrated into an organization. This includes activities that help new hires complete the initial New Hire Orientation process, learning more about the organization and its structure, culture, vision, and mission.
Onboarding, also known as organizational socialization, is a management term that first appeared in the 1970s to refer to mechanisms for imparting knowledge to new hires. , skills, and behaviors required to become a competent member and insider of an organization. For example, in the US, up to 25% of employees are involved with newly trained organizations in the onboarding process.
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Solaris, Inc. has 2000 shares of 5%, $10 par value, cumulative preferred stock and 50000 shares of $1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock
The annual dividend on the preferred stock is $1000 in total.
What is an Annual dividend?An annual dividend is a payment made by an insurance firm to its policyholders each year in the insurance sector. Annual dividends are most frequently given out in combination with plans that provide long-term disability insurance and permanent life insurance. A payment made annually to an insurance policyholder, frequently under a long-term disability or permanent life insurance policy, is known as an annual dividend. The insurance company's income, the success of investments, and the amount of money invested all affect the dividend amount.Annual profits may be paid as cash, used to pay for further insurance, or added to premiums to lower future total payments.
The company has 2000 shares of 5% that is: (2000*5)/100 = 100
with a par value of $10, which becomes:
100*$10 = $1000.
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Jefferson Millinery Inc. (JMI) decided to liquidate its wholly owned subsidiary, 8 Miles High Inc. (8MH). 8MH had the following tax accounting balance sheet: (Leave no answer blank. Enter zero if applicable.)
FMV Adjusted Basis Appreciation
Cash $ 265,000 $ 265,000
Building 78,000 34,500 43,500
Land 187,000 120,500 66,500
Total $ 530,000 $ 420,000 $ 110,000
a. What amount of gain or loss does 8MH recognize in the complete liquidation?
b. What amount of gain or loss does JMI recognize in the complete liquidation?
c. What is JMI’s tax basis in the building and land after the complete liquidation?
a. Since Jefferson Millinery Inc. (JMI) owns 8MH, so it will not recognize any gain or loss on liquidation.
b. $34,500 is the loss recognized by JMI, since JMI owns more than 80% of 8MH, it must recognize any loss or gain from its liquidation.
c. Since 8MH is being liquidated, its assets will be distributed to JMI at fair market value:
Building- $78,000 Land- $187,000FMV Adjusted Basis Appreciation
Cash $265,000 $265,000
Building $78,000 $34,500 $43,500
Land $187,000 $120,500 $66,500
Total $530,000 $420,000 $110,000
Liquidation is the act of turning assets into cash. For instance, a business closes and sells all of its merchandise because it is bankrupt and is in need of cash.
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Gloria is a broker for Jan. Jan is not satisfied with Gloria's work, so she fires her by email three months into a six-month term of a written listing agreement. Gloria is indignant and refuses to stop working for Jan based on her understanding of how agency works. Can Gloria legally continue to work for Jan
No, Gloria can not legally continue to work for Jan, because Jan has withdrawn her consent for Gloria to act on her behalf.
What is meant by consent?Consent refers to the parties' mutual comprehension of the terms of the agreement. The contract requires the voluntary assent of both parties. If there are certain mistakes, or if one party attempts to deceive or pressure the other, consent will not be considered voluntary or genuine.
The importance of consent in business-
Regardless of how you phrase it, consent helps us be more successful marketers. It makes us "ethical" marketers who recognize that acting morally will increase our chances of success in addition to ensuring that we abide by the law.The three sorts of consent that an organization may get are as follows:
Explicit Consent: An individual must be given a clear choice regarding whether to agree or object to the collection, use, or disclosure of their personal information in order to give their explicit consent.Implicit Consent: Implied consent is consent that isn't explicitly given by a person but is instead inferred from their behavior and the specific facts and circumstances surrounding the scenario (or, in certain cases, from their silence or inactivity).Opt-out Consent: Organizations do not need to get the user's consent before collecting and using their personal data if they have an opt-out consent.To know more about laws and regulations important for employers, here
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1) Write an SQL statement for the HAPPY INSURANCE database that adds the column ClientPhone to the table CLIENT.
An SQL statement for the HAPPY INSURANCE database that adds the column ClientPhone to the table CLIENT is:
ALTER TABLE dbo.CLIENT
ADD ClientPhone
What is SQL?This refers to the use of databases to perform computations such as UPDATE, ADD, ALTER TABLE, etc.
Hence, the use of Structured Query Language would help to add to a database and this would be done using the ALTER TABLES function as shown above.
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The weighted average cost of capital is determined by Blank______. Multiple choice question. multiplying the weighted average after-tax cost of debt by the weighted average cost of equity adding the weighted average after-tax cost of debt to the weighted average cost of equity dividing the weighted average after-tax cost of debt by the weighted average cost of equity adding the weighted average before-tax cost of debt to the weighted average cost of equity
The weighted average cost of capital is determined by dividing the weighted average after-tax cost of debt by the weighted average cost of equity. Option C. This is further explained below.
What is WACC?Generally, A company's WACC is determined by calculating the cost of each kind of capital (debt and equity) by the market value weight assigned to that source of capital, and then summing the results.
In conclusion, It is calculated by dividing the weighted average after-tax loan costs by the weighted average equity costs, and the weighted average cost of capital is the result.
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What is an erp system? how does an erp system enforce best practices for an organization?
An ERP (enterprise resource planning) system is a software application that includes a centralized database and is used throughout a company. It enforces best practices through the software's business processes.
Enterprise Resource Planning (ERP) is business management software that enables a company to use a collection of interconnected applications. The ERP systems automate and simplify the operations, resulting in a leaner, more accurate and more efficient organization. ERP gives the unparalleled visibility into the main business activities.
ERP may integrate information and procedures in one location rather than managing each aspect of the firm with a separate system. This streamlines tasks, automates procedures, and allows all parts of the supply chain to work more efficiently.
As a result, an ERP (enterprise resource planning) system is a software program with a centralized database that is utilized throughout a business. It enforces best practices through the business operations of the program.
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abigail bought 28 shares of stock at $30.00 per share. she received dividend of $49.50 during the year. at the end of the year, her stock was valued at $43.50 per share. what was her ROI?
If her stock was valued at $43.50 per share. Her ROI is:50.89%
Return on investmentFirst step
Purchase price=(28×$30)-(28×$43.50)
Purchase price= $840-$1218
Purchase price=$378
Gain in value=$378+ $49.50
Gain in value=$427.5
Second step
ROI=$427.5/$840×100
ROI=50.89%
Therefore the ROI is $15.89%.
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A federal unemployment tax is levied on
Any business with employees are subject to a payroll tax under the Federal Unemployment Tax Act (FUTA).
Payments of unemployment compensation to workers who have lost their jobs are made possible by the Federal Unemployment Tax Act (FUTA), which works with state unemployment systems. Most businesses are required to pay both federal and state unemployment taxes. Visit the U.S. Department of Labor's Contacts for State UI Tax Information and Assistance for a list of state unemployment tax agencies. FUTA tax is not taken out of an employee's paycheck; it is only paid by the employer.
Therefore, it is imposed on any business with employees
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The amount of mortgage a person is eligible for will be larger when:
The amount of mortgage a person is eligible for will be larger when there is lower interest rate.
What is a mortgage?This refers to an agreement that exist between a lender and a borrower in which a lender can take over the borrower's properties incase of any default in payment.
A mortgage is like a loan, obtained by a borrower with a promise to pay at a future date.
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