Only in special circumstances or on a temporary basis may survival pricing be used.
How does pricing policy impact an organization's ability to survive?Many operations of the firm's activities are directly correlated with a product's price. Demand will be impacted by a price decision, which in turn will have an impact on the firm's income. Similar to this, a profitable company tends to draw in more new funding.
How price impacts revenue?Your pricing approach will have an impact on the profit margin you make on each unit sold; assuming you don't lose sales, charging more will result in a higher profit margin. In contrast, higher pricing that result in lower sales volumes might reduce or even erase your profits because your overhead costs per unit rise as you sell fewer units.
What is ROI and how is it impacted by pricing?ROI is to quantify the relationship between an investment's return and cost. ROI is calculated by dividing the benefit (or return) of an investment by its cost. A percentage or ratio is used to represent the outcome.
How market share is impacted by pricing?Customers' interest and loyalty can be attracted by offering lower and more alluring prices. The vital sales that increase market share could increase as a result. In addition to providing promotions, coupons, freebies, and other benefits to customers, a business can consider discounts on the actual cost of the goods.
How do prices impact cash flow?One of the key aspects of a company's performance that directly affects cash flow is pricing. If you overcharge for your services, your cash flow will suffer along with your profit margin. If you price things too expensive, you run the danger of pricing potential clients out who either can't or won't pay.
How do prices impact the status quo?The more that higher prices denote higher quality, the less sensitive consumers become to price. Competition pricing, also referred to as status quo pricing, is either keeping current prices (status quo) or basing prices on those of rival businesses.
How does product quality relate to price?Small pricing adjustments translate into huge quality changes when prices are low. Small price changes correspond to smaller quality changes when prices are higher. But in every situation, more expensive goods are of superior quality.
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which of the following events shifts the short-run aggregate-supply curve to the right? a. an increase in government spending on military equipment b. an increase in price expectations c. a drop in oil prices d. a decrease in the money supply e. none of the above
A drop in oil prices shifts the short-run aggregate-supply curve to the right. Due to drop of oil price this raised.
The spot price of a barrel (159 liters) of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crude, OPEC Reference Basket, Tapis crude, Bonny Light, Urals oil, Isthmus, and Western Canadian Select. Oil prices are determined by global supply and demand, not by the volume of domestic production in any given country.
During the nineteenth and early twentieth centuries, the worldwide price of crude oil was largely stable. This changed in the 1970s, when the worldwide price of oil rose dramatically.
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an investment company you are analyzing had a net asset value of $16.00 on january 1 of last year. on january 1 of this year, its nav was $17.50. during this period, you notice that the asked price declined by more than $2 per share. this investment company must be a(n):
The investment company must be a Option(c) Closed-end investment company.
What are closed-end funds?Closed-end funds are created by investment organizations that issue shares to investors. In closed-end funds, pricing reflects investor sentiment, because they trade like stocks. When investors become disenchanted with the fund, it can trade at a discount to Net Asset Value (NAV).
There may be a premium or discount between the market price and the net asset value of closed-end funds. There can be no discount on the fund's net asset value when it sells at an open-end investment company. It must be a closed-end investment company if the net asset value increased by $1.50 and the price declined by more than $2.00.
Options:Option(a) Open-end investment company
Option(b) Specialized fund
Option(c) Closed-end investment company
Option(d) Dual-purpose mutual fund
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a. a government agency arranges to make loans to businesses whenever an economic downturn begins. this is an example of
Whenever a recession starts, a government agency sets up loans for businesses. An automated fiscal stabilizer like this one is an example.
Automatic stabilizers are parts of government budgets that, when the economy weakens, increase spending or decrease taxes without the consent of lawmakers.
Unemployment insurance, food stamps, and personal and corporate income taxes are examples of automatic stabilizers.
The tax and transfer systems have mechanisms known as automatic stabilizers that, without the direct involvement of policymakers, cool the economy when it overheats and stimulates it when it is in a slump. Without the direct involvement of policymakers, automatic stabilizers counteract fluctuations in economic activity.
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reese is comparing retirement plans with prospective employers. abc, inc., offering a salary of $38,000, will match 75 percent of his contributions up to 10 percent of his salary, his maximum contribution. xyz company will match 100 percent of this contribution up to 6 percent of salary, but he can contribute up to 15 percent of his income. xyz company is offering a $35,000 salary. if reese assumes that he will contribute the maximum amount allowed and keep these first-year retirement funds invested for 30 years with a 9 percent return, how much would each account be worth?
XYZ Total Contribution = $7350
XYZ Future Value of Contribution = $97517
XYZ Total Contribution = Salary in XYZ x Maximum Matching Contribution x Matching % + Personal Contribution
XYZ Total Contribution = 35000 x 6% x 100% + 35000 x 15%
XYZ Total Contribution = $7350
XYZ Future Value of Contribution = XYZ Total Contribution x (1 + Interest)^Years
XYZ Future Value of Contribution = 7350 x 1.09^30
XYZ Future Value of Contribution = $97517
Future value (FV), a financial concept, determines the value of an asset based on anticipated factors, such as future interest rates or cashflows. Knowing how much their investment would be in five years, given a projected rate of return, may be valuable for an investor.
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our discount brokerage firm charges $8.55 per stock trade. how much money do you need to buy 290 shares of pfizer, inc. (pfe), which trades at $37.12? (round your answer to 2 decimal places.)
Each stock trade at our discount brokerage costs $8.55. How much money is required to purchase 290 shares of Pfizer, Inc. (PFE), $ 10,773.35 at $37.12.
A stock market, equity market, or share market is the gathering of buyers and sellers of stocks (also known as shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as stock that is only traded privately, such as shares of private companies sold to investors through equity crowdfunding platforms. Investments are typically made with an investment strategy in mind. A stock market trade is the transfer of a stock or security from a seller to a buyer. This requires these two parties to reach an agreement on a price. Equities represent a stake in a specific company.
Small individual stock investors to large institutional investors all participate in the stock market.
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if mcdonald's and burger king raise prices too high, customers may switch from burgers to tacos. this illustrates porter's force of .
If McDonald's and burger king raise prices too high, customers may switch from burgers to tacos. this illustrates porter's force of Substitutes.
Porter's force:
Porter's forces or Porter's five force is method of analyzing the operating environment of a competition of a business. And it helps to derive five forces that determine the competitive intensity and, therefore, the attractiveness of an industry in terms of its profitability.
Given,
if McDonald's and burger king raise prices too high, customers may switch from burgers to tacos.
Here we need to find the porter's forces used.
While we looking into the given situation we have identified that the customers are switched over from burgers to tacos because the increase in the price of the product.
Therefore, it defies the porter's force of substitutes.
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during industrialization, americans increasingly a. had less free time. b. became more inefficient. c. became less optimistic. d. fell into the ways of lockstep living. e. fragmented into diverse consumer markets.
Americans started increasingly falling into the ways of lockstep living during the industrialization period.
During the late nineteenth and twentieth century, America witnessed major changes in terms of behavior, migration, and living standard due to industrialization. People started moving towards cities in order to get employed and high standard of living. It also led to a change in the physical composition of the city. In light of industrialization, family size gradually declined after the Civil War and the emergence of the second industrial era.
Americans are living in lockstep ( unison and one rigid way lifestyle) with the increment of industry, and technology, markets people started living like a machine with everyone following one another in a row.
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when the government imposes a limit on sales of a good or service by a quota, it usually issues a license that gives the owner the right to sell a given quantity of the good. the market price of the license is equal to:
The government imposes a limit on sales of a good or service by a quota, it usually issues a license that gives the owner the right to sell a given quantity of the good. the market price of the license is equal to the demand price of the good.
When the authority's coverage is to adjust the amount of a great that may be offered and offered as opposed to the fee at which it's miles transacted, it makes use of a: quota. When fee controls take the shape of most costs set beneath the equilibrium fee, they are: fee ceilings.A fee ground this is set above the equilibrium fee creates a surplus. Figure 4.8 “Price Floors in Wheat Markets” indicates the marketplace for wheat. Suppose the authorities' units the fee of wheat at P F.
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Type the correct answer in the box.
Identify the marketing research technique implied in the scenario.
A toothpaste manufacturing company has created a new ad for their product to air on television. After the ad airs, bcthey intend to show the ad to a certain
number of customers and then ask them for their feedback regarding the ad. This company is engaging in the _____________
market research technique.
The company is engaging in Customer behavior marketing research techniques.
Consumer Behavior
Consumer behavior refers to the study of consumers and the actions and the decision processes they use to purchase goods and services to satisfy their needs and wants, including emotional, mental, and behavioral responses
Types of
Complex buying behaviorDissonance-reducing buying behaviorHabitual buying behaviorVariety seeking behaviorHence, The company is engaging in Customer behavior marketing research techniques.
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when capital income increases and everything else stays the same on the labor market group of answer choices labor supply decreases and the real wage increases. labor demand increases and the real wage increases. labor demand decreases and the real wage decreases. labor supply increases and the real wage decreases.
Effect of real wage growth on substitution, w. As w rises, more labour is done to raise income, and a worker performs work in its place.
What happens to the demand for labour as capital rises?
The labour demand curve changes out and right as the capital stock rises, and the production function shifts up. More workers are employed and output rises at a given real wage. The income effect explains why the labour supply curve bends backwards; beyond a particular wage rate, workers can afford to work fewer hours while still earning the same amount of money.
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When capital income increases and everything else stays the same on the labor market group --labor supply decreases and the real wage increase.
What is capital income?
Capital income is income that comes from capital, which is to say, comes from wealth itself, rather than any specific product or direct work. exemplifications are stock tips or any kind of capital earnings, as well as income an proprietor gets from a business he owns but not from the work he does there.
What's the function of capital income?The most important function of the capital is to promote the profitable growth of the country. For the satisfactory development of the country, acceptable finances are veritably essential.
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which of these is not a risk strategy that is used specifically for dealing with opportunities? a. mitigate opportunity b. enhance opportunity c. exploit opportunity d. share opportunity
Mitigate opportunity is not a risk strategy that is used specifically for dealing with opportunities.
Risk strategy
Risk strategy means structured approach to addressing risks, and can be used in companies of all sizes and across any industry.
Given,
Here we need to identify which one is not a risk strategy that is used specifically for dealing with opportunities from the given options.
While we looking through the given options,
Enhance, exploits and share opportunity are risk strategies used in opportunities.
But the mitigate opportunity does not used in the risk strategy that is used specifically for dealing with opportunities.
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weiske industries hires a cleaning company to clean their office building, their factory, and their warehouse. how will weiske need to categorize these expenses?
Cleaning for the factory and warehouse will be a manufacturing overhead expense, whereas cleaning for the office building will be a period expense.
How expenses are categorized?Financial expenses can be divided into three categories: Fixed, Variable, and Periodic. For example, office rent or employee vehicle lease payments are examples of fixed expenses that don't alter for a long time. Monthly variations can be found in variable costs. Utilities, food, and entertainment are a few examples.Periodic expenses include things like auto maintenance and last-minute trips that arise infrequently and are difficult to prepare for.Small business owners in particular should pay closer attention to variable and periodic expenses because there might be significant variations from month to month.To learn more about expenses, refer to
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which doctrine would be relevant if a change in government regulation that neither contracting party contemplated forbids the import or export of a particular item the parties had agreed would be shipped?
Commercial impracticability occurs when a change in government regulation that neither contractual party anticipated prevents the import or export of a specific item that the parties agreed would be transported. Thus, the right doctrine is Commercial impracticability.
What is Commercial impracticability?The theory of commercial impracticability applies when a party is unable to execute its contractual commitments owing to an unpredictable circumstance that makes performance exceedingly difficult (but not impossible).
Commercial Impossibility Elements of Law
An unexpected incident happened.You are unable to fulfill your contractual responsibilities due to an unanticipated incident.The parties could not have properly forecast the unforeseeable incident.The defendant's acts or omissions did not contribute to the event's occurrence.To learn more about contractual commitments, click
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last october, a large nationwide grocery chain announced a recall on their chile lime chicken burgers, due to potential foreign material (bone) in their products. this is an example of
This is an example of Prevention cost of quality. As part of the cost of quality, prevention expenditures are incurred in order to avoid product faults. Employee training and supplier certification are typically included in the cost of prevention.
Generally speaking, Prevention defects is what leads to the biggest increases in product quality. Before operations, activities that ensure good quality and prevent poor quality products or services are planned and designed. Examples include quality improvement teams, education and training, supplier surveys, process reviews, and evaluations of new expenditures. Any business expense made with the goal of lowering the frequency of product or service errors is referred to as a prevention cost.
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what are the effects on the accounting equation from the adjustment for revenue earned during the accounting period that had previously been recorded as a liability?
The reduction in total liabilities and the increase in total stockholders' equity will result from the accounting equation's adjustment for revenue collected during the accounting period that was recorded as a liability.
Write a short note on accounting period.An predetermined window of time within which accounting operations are carried out, gathered, and analyzed is known as an accounting period. An accounting period's duration may be expressed in weeks, months, quarters, fiscal years, or calendar years. The accounting period is helpful in investment because prospective investors can assess a company's performance by looking at its financial statements, which are based on a set accounting period. In most cases, more than one accounting period is active at any given time.
Analysts and potential investors benefit from accounting periods because they can use them to spot trends in a single company's performance over time. The performance of two or more companies during the same time period can be compared using accounting periods as well.
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what is the relationship between job satisfaction and performance? group of answer choices they have a correlation of .3 job satisfaction causes people to perform better. it is a spurious correlation. they are only connected when ocb is high.
The relation between job satisfaction and performance are spurious correlation.
what is the relationship between job satisfaction and performance?
Numerous studies have demonstrated that any organization would benefit from spending money to increase employee satisfaction. Of course, the fundamental justification is that, as a company, you'll want to have contented staff working for you. Employee happiness is one of the best predictors of long-term successful firm performance, according to numerous research and papers.
Performance, which is linked to better earnings, is also associated with high job satisfaction. Employees who are satisfied in their jobs are much more likely to approach their work with a positive attitude and a commitment to excellence.
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a corporate charter specifies that the company may issue up to 20 million shares of stock. the company sells 12 million shares to investors and later buys back 3 million shares. the current number of shares of treasury stock after these transactions have been accounted for is: multiple choice 3 million shares. 8 million shares. 9 million shares. 17 million shares.
The current number of shares of treasury stock after these transactions have been accounted for is 9 million shares.
What is Treasury Stock?
Treasury stock, commonly referred to as treasury shares or reacquired stock, denotes previously outstanding stock that the issuing business has acquired from stockholders. The overall number of outstanding shares on the open market declines as a result. Treasury stocks, also known as reacquired stocks, are shares that the issuing business has purchased back, therefore lowering the number of outstanding shares on the open market. The automaker chooses to repurchase shares for $100 million. This must be reflected in shareholder equity on the company's balance sheet. It will list $100 million in cash and $100 million in treasury stock, respectively, as credits and debits.
Hence, The current number of shares of treasury stock after these transactions have been accounted for is 9 million shares.
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all else equal, an increase in beta results in group of answer choices an increase in the cost of newly issued common stock an increase in the cost of common equity, whether or not the funds come from retained earnings or newly issued common stock an increase in the cost of retained earnings an increase in the after-tax cost of debt
Whether the money comes from retained earnings or freshly issued common stock, a rise in beta causes a rise in the cost of common equity.
A security that symbolizes ownership in a firm is called common stock. Whatever assets are left over following a liquidation go to common stockholders after being distributed to creditors, bondholders, and preferred stockholders. In the market, various kinds of stocks are traded.
In the event that the company only issues 100,000 shares at $50 each, it will debit its Cash account for $5,000,000 and credit its Common Stock account for $5,000,000. There will now be 100,000 shares of common stock outstanding for the company.
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what would be the appropriate journal entry by miad to account for the customer's purchase of the apparel in february?
The journal entry will be Debit Deferred Revenue .
A journal entry is the act of retaining or making statistics of any transactions either financial or non-economic. Transactions are indexed in an accounting magazine that suggests a agency's debit and credit score balances. The magazine entry can include numerous recordings, each of that is either a debit or a credit.
A journal entry is a report of a commercial enterprise transaction to your commercial enterprise books. In double-access bookkeeping, you're making at the least journal entries for each transaction.
Due to the fact a transaction can create numerous adjustments in a commercial enterprise, a bookkeeper tracks them all with magazine entries.
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aurico is a company that offers ethics hotline maintenance and monitoring services for organizations. which component of the federal sentencing guidelines for organizations compliance program does this service help organizations to satisfy?
The component of federal sentencing guidelines for organization are Systems for monitoring, auditing, and reporting misconduct
What's association compliance?
In commercial and organizational operation, compliance is the procedure of making sure your association and workers follow practicable laws, regulations, norms, and ethical practices. In addition to succeeding inward programs, it also means being harmonious with state and civil laws. A compliance program is a set of inward programs and operations within a organisation to misbehave with laws, bylaws, and regulations or to justify the business' character.
Federal sentencing guidelines for organization :The FSGO apply to paunches, collaborations, labor mergers, pension finances, trusts,non-profit realities, and administrative units. The forfeits under the FSGO include forfeitures, exploration, public announcements of conviction, and reparation. The FSGO also hold provisions that can mainly alleviate forfeits.
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one of the major risks of pursuing a strategy of tangible or intangible differentiation advantage is that
One of the major risks of pursuing a strategy of tangible assets or intangible differentiation advantage is that company may fail to detect the competitors.
What are tangible assets?Long-term physical resources that are owned by a company or organization and have some economic worth are referred to as tangible assets. Assets are typically not for sale and are acquired by the corporation in order to run its activities successfully. Examples of the same include buildings, vehicles, tools, equipment, furniture, fixtures, land, computers, and so on. Most often, these assets are at risk of being lost to theft, fire, accidents, or other natural disasters. A useful economic life exists for tangible assets, beyond which they run the risk of becoming obsolete. The most popular technique used by businesses to stretch out the cost of an asset over the course of its economic life is depreciation.
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when the values of a set of currencies are set against each other at some mutually agreed on exchange rate, a exchange rate exists.
When the values of a set of currencies are set against each other at some mutually agreed on exchange rate, an exchange rate exists fixed.
What is the exchange rate?Exchange rates are determined by the demand and supply of a particular currency. When demand for a currency is high, the currency's value increases, and when demand is low, the currency's value decreases. Exchange rates can be affected by a variety of factors, such as economic conditions, political stability, and even the weather. For example, a country's currency may strengthen if its economy is doing well but may weaken if the country is experiencing political turmoil.
A fixed exchange rate defines a condition in which the exchange rate of a currency is linked with another currency. The government of a nation maintains a fixed rate of exchange by intervention in foreign exchange.
It can be concluded that, when the values of a set of currencies are set against each other at some mutually agreed exchange rate, an exchange rate exists fixed.
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quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and an 11% coupon, semiannual payment ($55 payment every 6 months). the bonds currently sell for $844.87. if the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? do not round intermediate calculations. round your answer to two decimal places.
Using a financial calculator, enter the following input data: N = 20 × 2 = 40; PV = -845.87; PMT = 0.06/2 × 2,000 = 60; and FV = 2,000. Then, solve for YTM/2 = I/YR = 7.6700%. So, YTM = rd = 2 × 7.6700% = 15.3400%.
The firm's marginal tax rate is 40%, so the after-tax cost of debt, rd(1 - T) = 0.153400 × (1 - 0.4) = 0.092000 = 9.2%.
A tax is a mandatory fee or economic rate levied through any government on an individual or an agency to accumulate revenue for public works providing excellent facilities and infrastructure. The collected fund is then used to fund unique public expenditure applications.
Amassing taxes and charges is an essential manner for international locations to generate public sales that make it viable to finance investments in human capital, infrastructure, and the supply of services for residents and organizations
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A retirement or abandonment of an asset is different from a sale of an asset because?.
A retirement or abandonment of an asset is different from a sale of an asset because a loss should be recognized for the remaining book value.
A durable asset is considered to have been disposed of when it is no longer in use. The carrying amount that was in effect when the asset was retired or abandoned is deducted from its value. The resulting loss is then deducted from the asset's carrying value. The difference between retiring or abandoning an asset and selling it is that no money is transferred.
The remaining book value necessitates the recording of a loss. An asset is considered retired when it is permanently taken out of service. Disposing of an asset due to obsolescence or a sale to a third party are two examples of asset retirement procedures.
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problem1answered. problem2answered.this problem is current being displayed. problem3 question content areaon july 8, action co. issued a $79,000, 6%, 120-day note payable to scanlon co. assuming a 360-day year, what is the interest expense of the note?
As a result, it is very common for a company to borrow money early on, either from a thank or from a third party, to use for working capital and other business requirements.
It is essential for a business to record the interest expense associated with any borrowings when the company closes its books each month.
On July 8, Alton Company issued 120-day, 6%-interest-bearing $80,000 notes payable to Seller Company. Assume that Seller Company's fiscal year ends on July 31.
How is the interest expense on the note payable calculated?A long-term note payable's annual interest rate and principal balance should be determined. The annual interest expense is calculated by multiplying the balance by the interest rate. To determine the amount of interest to record in a monthly adjusting entry, divide the annual interest expense by 12.
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what is the primary problem in the northeast region? select an option from the choices below and click submit. the many repetitive complaints from the field suggest that you have store managers who just aren't up to the job. you must plan on hiring a stronger management team. the store managers are not receiving clear, consistent direction. communication with the store managers is too slow. they need quick responses to their questions.
X - too little time is spent communicating with store managers. Hey require prompt responses to their inquiries.
X - the numerous, recurrent complaints from the field suggest that your store managers are incapable of performing their duties. You must prepare to hire a more powerful management team.
How will the team be able to communicate its findings with your formal network?
You will receive the team's final report, which you will then share with your leads, who in turn will share it with each store manager to ensure that all questions are answered, and that communication is accurate.
When a rival across town abruptly shut down?
Janie's Gun Gallery saw a significant increase in patrons when a competitor across town abruptly closed. Janie motivated her staff to work harder to satisfy each customer's needs.
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the financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)
The financial statement, that presents a summary of the revenues and expenses of a business, is called an Income Statement
What is an income statement?One of the three crucial financial statements used to describe a company's financial performance throughout a certain accounting period is the income statement. The balance sheet and the cash flow statement are the other two important statements.The revenue, costs, profits, and losses incurred by a corporation over a specific time period are the main topics of the income statement. An income statement, also referred to as the profit and loss (P&L) statement or the statement of revenue and expenses. Offers essential information about a company's operations, the effectiveness of its management, underperforming industries, and its performance in comparison to peers in the same industry.
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the social media department functions at a senior level that reports to the cmo (chief marketing officer) or ceo and is responsible for all the social media activations with which social media structure?
A social network is a network of relationships between agents, such as people or groups of people. A social network shows the connections that exist between individuals and groups of people, from passing acquaintances to tight family relationships. Social networks are made up of nodes and linkages.
What is socila networking structure:
Situations, roles, social networks, groups & organizations, social structures, and society make up the bulk of the social structure. The ascribed status, attained status, and attempt to maximize are particular categories of statuses.
The social structure determines how people behave. A person's beliefs, attitudes, and behaviors are influenced by where they are in the social hierarchy, their social class and rank, the roles they play, and the cultures, groups, and social structures to which they belong.
The conduct of many players can be effectively organized by a social framework. The behavior of an individual or group is coerced by a structure. Individual actors are given roles and authority by a social system. A social structure frequently affects how both people and groups are distributed.
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monica consumes two goods, iced tea and spaghetti. the price of iced tea is $2 per bottle. her income is $500 per month. she spends all her income each month. she purchases 50 bottles of iced tea and 100 servings of spaghetti. what is the price of a serving of spaghetti?
The price of a serving of spaghetti is $4
Goods consumed by Monica: Ice tea and spaghetti
Price of ice tea = $2
Income of Monica per month= $500
Purchases made by Monica from her total income:
Number of iced tea purchased = 50 bottles
The total cost of iced tea purchased by Monica= 50*2 = $100
Number of servings of spaghetti purchased = 100 servings
Let x be the cost of spaghetti
The total cost of iced tea + Cost of spaghetti*number of spaghetti servings purchased = Total money
By formulating the equation and solving we get the following:
100 + x*100 = 500
100x = 400
x = $4
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independent auditing can best be described as group of answer choices a branch of accounting. a discipline that enhances the degree of confidence that users can place in financial statements. a professional activity that measures and communicates financial and business data. a regulatory function that prevents the issuance of improper financial information.
Independent auditing can be best describe as all the above mentioned options that are demonstrating the narrative.
What exactly falls under the independent auditor's remit?An independent auditor is frequently retained to prevent conflicts of interest and to ensure the neutrality of an audit. To safeguard shareholders and potential investors from occasionally false or misleading financial statements made by public corporations, independent auditors are frequently used—or even required.
What makes auditing impartial?The auditor should be independent of the client company to prevent any connection between them from influencing the audit opinion. The shareholders anticipate receiving from the auditors a fair, sincere evaluation of the financial statements.
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