Answer: B. When comparing companies in different industries, a higher profit margin always indicates which company has better management performance
Explanation:
The profit margin refers to how much profit the company is making given the amount of sales it makes. It is therefore very dependant on the expenses incurred by the company.
This is why comparing management in different industries by using the Profit margin is like comparing apples and oranges. Industries are different and so are their methods of operation. One industry might require more expenses than another and still only make less sales which would impact it's profit margin negatively.
Profit Margin is best used for companies in the same industry.
Which of the following actions should Reece Windows take if it wants to reduce its cash conversion cycle?a. Take steps to reduce the DSO.b. Increase average inventory without increasing sales.c. Sell common stock to retire long-term bonds.d. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales.e. Sell an issue of long-term bonds and use the proceeds to buy back some of its common stock.
Answer: a. Take steps to reduce the DSO
Explanation:
Cash conversion cycle simply measures the length by which there will be deprivation of cash for a firm when the firm increases its investment in its inventory so that customer sales can be expanded
The actions that Reece Windows should take if it wants to reduce its cash conversion cycle is to take steps to reduce the DSO. This will help in reducing cash conversion cycle.
essalyn Poulsen is an accountant for her firm, a medium-sized company with 125 employees. The firm has traditionally maintained the administration of its payroll. Her co-worker, the only other accountant in the firm, retires. Because of budget concerns, the firm chooses not to refill the position. What options does Jessalyn have regarding administration of the payroll?
Available Options Are:
A. Jessalyn could obtain a software program to fill the need
B. The company can outsource the task to any of a number of qualified, certified payroll preparation firms.
C. The company could opt to process payroll manually
Answer:
Option A and B are correct here.
Explanation:
Obtaining a software program to fill the need can help as using the software will lower the burden on the employees for managing the accounts department as the software prepares financial statements its self and all you have to do is enter transactions. So option A is correct.
The task can be outsourced to a firm that will manage the accounts of the company and will charge small fee.
By doing so the budget issue of the company would be resolved otherwise processing payroll department manually would cost more than these above two options.
The price of printers at the big box tech stores increases as a new type of print tech is rolled out to consumers. which of the follwoing scenario for a complementary printer good would likely take place?
A- the demand for printer ink decreases as less people are buying printers
B- the demand for printer paper rises as pepole stock up
Answer:
A- the demand for printer ink decreases as less people are buying printers
Explanation:
Generally speaking, when the price of a complementary good increases, the quantity demanded for both goods should decrease. If the price decreases, the opposite should happen. Even though the demand for some high tech products behave in strange ways (e.g. first iPhones), usually new products with higher prices will result in a decrease of the demand for that specific product and all complementary products.
Which of the following is an ineffective practice during a negotiation process? Bargaining by focusing on positions rather than interests Starting the negotiation with a relationship-based tone rather than on an adversarial note Concentrating on problems rather than people when bargaining Exploring all possibilities for solutions rather than quickly focusing on one fixed solution
Answer: Bargaining by focusing on positions rather than interests
Explanation;
Positional bargaining is described as one of the most ineffective bargaining types there are. This is because it leads to myopia in the parties involved as all they will be interested in is to ensure that their position is secure.
Interest based negotiations however move past positions and instead of maintaining a position, think about why they have such a position and how they can still satisfy those interests with through other methods thereby enabling them to reach more effective compromises or deals.
As the price level rises, firms respond in the short run to the change in the real wage rate by ______.
Answer:
A. increasing production
Explanation:
In case when the level of price increased, that the firm respond in the short run with respect to the change in the real wage rate would increase the production level as the level of price increased also it shows the direct relationship between the price level and the production level
Therefore in the given situation, the correct option is A. increasing production and hence, the same is to be considered
If Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other positions, from accountants to dishwashers, then the company has a
Answer: network structure
Explanation:
Network structure is a form of organizational structure that is considered to be less hierarchical and also more flexible than most other organizational structures. In a network structure, it is the managers who usually both the internal and external relationships.
Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other positions, from accountants to dishwashers, then the company has a network structure.
An investor's portfolio has a beta coefficient of 0.85. If the overall market declined by 10% over the course of a year, the portfolio's value has likely
Answer: decreased by 8.5%
Explanation:
The beta coefficient of a stock is simply used to measure the volatility of a stock which is relative to the market.
From the question, we are informed that investor's portfolio has a beta coefficient of 0.85 and that the overall market declined by 10% over the course of a year.
Based on the information above, the value of the portfolio would have decreased by:
= 0.85/10
= 0.085
= 8.5%
Suppose you invest today and receive in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year? a. What is the internal rate of return (IRR) of this opportunity? The IRR of this opportunity is 30.60%. (Round to two decimal places.) b. Suppose another investment opportunity also requires upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year? The periodic payment that gives the same IRR is $ nothing. (Round to the nearest cent.)
Answer:
the numbers are missing, so I looked for a similar question:
investment today = $3,000receive $10,250 in 5 yearsa) I will use the future value formula to determine the internal rate of return:
future value = present value x (1 + r)ⁿ
future value = 10,250present value = 3,000n = 510,250 = 3,000 x (1 + r)⁵
(1 + r)⁵ = 10,250 / 3,000 = 3.4166667
⁵√(1 + r)⁵ = ⁵√3.4166667
1 + r = 1.27855826
r = 0.27855826 = 27.86%
b) assuming a $3,000, 27.86%, 5 year annuity, the annual payment will be:
annual payment = principal / FV annuity factor, 27.86%, 5 periods
principal = $10,250PV annuity factor, 27.86%, 5 periods = 8.67633annual payment = $10,250 / 8.67633 = $1,181.38
First, regardless of the strategy, _____ storage and _____ storage must be secured.
Answer:
The correct answer is offsite and onsite.
Explanation:
When implementing Business Continuity the preservation of company data comes first.
Business Continuity Plan/Strategies are those measures that a company puts in place to ensure that regardless of the threat, and or disruption to the existing model that allows them to provide goods or services, (e.g. tsunamis or earthquakes, riots and civil unrests, compulsory government curfew) they can continue to function, reach their customers and remain operational.
The first rule of Business Continuity Plan is to protect all information assets. Off-site data or information refer to those information and or data that are remotely stored. That is, they are secured far away from the physical location of the business such as a data or server farm, cloud storage etc.
Onsite data storage refers to storing data on the premises or site of the business. Some fo the tools used are Hard Disk Drivers, Solid State Drives, DVDs etc.
Cheers!
What was the impact of the near failure of Bear Stearns and the failure of Lehman Brothers on Money Markets
Answer:
See explanation
Explanation:
The impact of the near failure of Bear Stearns resulted in financial crisis which shook global economy. This financial crisis almost brougt recession to Nations. Lehman Brothers on the other hand, crashed the stock market which caused problems on the S$P index.
The Treasury Department pumped more money into the economy in attempt to help Bear and Stearns but the two banks still failed leading to loss of money.
The failure of Lehman Brothers is termed the largest Bankruptcy in the history of U.S. The bankruptcy affected financial markets greatly.
Money Markets can be defined as the market that provides short term funds to the players. it is not regulated like the capital markets but it is also a component of the economy.
Increasingly, companies are partnering with highly recognized universities that offer ________.
Complete Question:
Increasingly, companies are partnering with highly recognized universities that offer ________.
Options:
- corporate university courses
- massive open online courses
- simulations
- classroom based instructions
Answer:
- corporate university courses
Explanation:
Companies and universities need to collaborate to conduct researches and explore and access world-class innovations and research findings. They can also work together to grow and develop internal capability of both organizations through the creation of suitable corporate courses and the exchange of personnel and funding. The town always needs to meet to the gown and vice versa. This meeting should not be casual, but well-planned and coordinated with the objective of sustainability. Because, both parties lose out if they do not work hand in hand.
Visit California is responsible for promoting tourism in the state and recently ran a successful ad called "Average Joes" to share lifestyle attributes that are popular there. This an example of which type of advertising
Answer: reminder institutional advertising
Explanation:
From the question, we are informed that Visit California is responsible for promoting tourism in the state and recently ran a successful ad called "Average Joes" to share lifestyle attributes that are popular there.
This is an example of reminder institutional advertising. In reminder institutional advertising, an organization rather than promoting its product, seeks to buy goodwill.
The following information relates to a patent owned by Gentry Company:Cost $3,400,000Carrying amount $1,700,000Expected future cash flows $1,500,000Fair Value $1,200,000Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2016. (b) Using the same assumption as part (a) above, prepare the journal entry to record amortization expense for 2017 assuming the asset has a remaining useful life of 3 years at the beginning of 2017. (c) Using the same assumption as part (a) above, prepare the journal entry (if any) at December 31, 2017, assuming the fair value of the asset has increased to $1,900,000. (d) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2016, assuming Gentry ceased using the patent at the end of 2016 and intends to dispose of the patent in the coming year. Gentry expects to incur a $10,000 cost of disposal. CAL STATE SAN BERNARDINO - DEPT OF ACCT & FINANCE - PROF M. HENRY Page 5 Expected future net cash flow 1,500,000 Fair value 1,200,000 Cost $3,400,000 Carrying amount 1,700,000
Answer:
Gentry Company
a) Journal Entry to record the impairment of the patent at December 31, 2016:
Debit Impairment Loss on Patent $500,000
Credit Patent $500,000
To record the impairment loss.
b) Journal entry to record amortization expense for 2017 assuming the asset has a remaining useful life of 3 years at the beginning of 2017:
Debit Patent Amortization Expense $400,000
Credit Accumulated Amortization $400,000
To record the amortization expense for the year.
c) (c) Using the same assumption as part (a) above, prepare the journal entry (if any) at December 31, 2017, assuming the fair value of the asset has increased to $1,900,000:
Debit Patent $200,000
Credit Impairment Gain $200,000
To record impairment gain.
(d) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2016, assuming Gentry ceased using the patent at the end of 2016 and intends to dispose of the patent in the coming year. Gentry expects to incur a $10,000 cost of disposal:
Debit Impairment Loss $200,000
Credit Patent $200,000
To record the impairment loss on disposal.
Debit Cost of Disposal of Patent $10,000
Credit Cash Account $10,000
To record the cost of disposal of the patent.
Explanation:
a) Data and Calculations:
1) Patent:
Cost $3,400,000
Carrying amount $1,700,000
Expected future cash flows $1,500,000
Fair Value $1,200,000
2) Assumptions:
a) Impairment at December 31, 2016:
Carrying amount $1,700,000
Fair Value $1,200,000
Impairment = $500,000
b) Amortization for 2017:
Carrying amount $1,200,000
Remaining useful life = 3 years
Amortization expense for 2017 = $400,000 ($1,200,000/3)
c) Impairment Testing for 2017:
Carrying amount = $1,700,000
Fair value = $1,900,000
Impairment Gain = $200,000
d) Gentry ceased using the patent at the end of 2016 and intends to dispose of the patent in the coming year. Gentry expects to incur a $10,000 cost of disposal:
December 31, 2016:
Carrying amount $1,700,000
Expected future cash flows $1,500,000
Disposal cost = $10,000
Impairment loss = $200,000
b) The accountants at Gentry Company can calculate the patent's impairment loss as the difference between the patent's carrying value and its fair market value. The journal entry to record an impairment loss is a debit to the Patent Impairment Loss account and a credit to the related Patent account. An impairment gain can arise when the patent's fair value is higher than the carrying value.
Rextacular Manufacturing Company reported the following materials data for the month ending June 30, 2016:
Materials purchased $828,000
Materials inventory, June 1 279,000
Materials inventory, June 30 252,000
Determine the cost of direct materials used in production by Rextacular during the month ended June 30, 2016.
Answer:
Material used = $855,000
Explanation:
The computation of the cost of direct material used is shown below;
Material purchased = $828,000
Add:
Opening Inventory = $279,000
Less:
Closing Inventory = ($252,000)
Material used = $855,000
we simply applied the above formula so that the cost of direct material used could come
Hence, the cost of direct material used in production is $855,000
Business activities on the cash flow statement can be classified into 3 groups:_____.
A) Operating Activities, Investing Activities and Financing Activities.
B) Operating Activities, Investing Activities and Leasing Activities.
C) Operating Activities, Marketing Activities and Financing Activities.
D) Operating Activities, Dividends, and Financing Activities.
What was once considered the ideal engine for economic growth, but resulted in inflated public-sector bureaucracies and inefficient public companies
Answer: state ownership
Explanation:
State ownership was once considered the ideal engine for economic growth, but resulted in inflated public-sector bureaucracies and inefficient public companies.
In state owned enterprises, there are inefficiencies among the employees as they don't really strive to achieve their goals unlike those that works in private establishments who are more serious with their work.
Identify four factors that affect whether an industry does or does not present a company with a good business opportunity?
Answer:
Rivalry between competitors Bargaining power of suppliers Bargaining power of customers Threat of new competitorsExplanation:
The factors chosen to identify whether or not a sector presents a good business opportunity for a company, were the strengths of Porter, who analyzes the micro and macro environment to determine whether a company can be competitive in the market.
The rivalry between competitors is an essential factor to measure the degree of opportunity for a business to be successful, as this factor will determine different variables among competitors of similar products in the market, such as the strength of the brand, the demand for your product, etc. in order to measure how this factor will directly impact your business.
The bargaining power of suppliers implies the bargaining power of the supplier with the company, being able to provide favorable or unfavorable conditions to a business, such as price, delivery time, quality, etc.
The bargaining power of buyers means measuring and monitoring how your product will have a positive or negative weight on the customer and which affects the volume of purchases, the possibility of the customer negotiating with the company, etc.
And the threat of new competitors concerns new competitors that can enter the market and directly impact their business, for this the barriers to entry such as legislation, high entry capital, etc. should be analyzed.
As the price level declines along the aggregate demand curve, the interest rate is most likely to:___________.
a. Decline
b. Increase
c. Remain unchanged
Answer:
a. Decline
Explanation:
Whenever there is a reduction in the price level, this results in gains in the real money supply which eventually moves the LM curve to the right.
Hence, given that, the IS curve has a downward slope, the IS and LM curves will meet at a higher level of income and a lower interest rate.
Therefore, the correct answer, in this case, is Option A: DECLINE
Note LM means Liquidity and Money
While IS means Investment and Savings.
12.The metric that measures how well an enterprise is using customers to create short-term and long-term value is
Answer:
return on customer
Explanation:
Return on customer refers to basically measuring customer loyalty and how much revenue returning customers generate to your business. Return on customer focuses on your company's CRM activities and how they affect future customer behavior. Are your CRM activities resulting in more frequent sales? A company spends money on their CRM activities, and this is a way to quantify if they are doing it correctly and if they are yielding positive results.
Some people call this return on customer investment, since the ultimate goal is to determine if your investment in customer services is resulting in higher sales and higher profits.
The following information is available for Birch Company at December 31: Money market fund balance $ 2,910 Certificate of deposit maturing June 30 of next year $ 16,200 Postdated checks from customers $ 1,775 Cash in bank account $ 23,631 NSF checks from customers returned by bank $ 770 Cash in petty cash fund $ 320 Inventory of postage stamps $ 30 U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year $ 11,200 Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:
Answer:
$38,061
Explanation:
Calculation for the Cash and Cash Equivalents on December 31
Money market fund balance $ 2,910
Cash in bank account $ 23,631
Cash in petty cash fund $ 320
Treasury bill purchased $11,200
Total=$38,061
Therefore Birch Company should report Cash and Cash Equivalents on December 31 of: $38,061
A written representation from a client’s management that, among other matters, acknowledges responsibility for the fair presentation of financial statements, should normally be signed by the
Answer:
The answer is Chief Executive Officer and and the Chief Financial Officer
Explanation:
As part of the requirements for audit process, the external auditor will obtain from the management a written representation for the financial statements being presented to the external auditor. The management is responsible for the preparation of Financial statement and the external auditor expresses their opinions on it.
To show accountability, The Chief Executive Officer and the Chief Financial Officer both sign on it.
The audit expectation gap occurs when there is a difference between the expectations of the ________. a. generally accepted accounting principles and auditors. b. auditors and company under review. c. auditors and financial statement users. d. company under review and financial statement users.
Answer:
c. auditors and financial statement users.
Explanation:
This is because, the auditors and the financial statement users tends to have different views on what their responsibilities are. Since their views differs, their tend to be a gap which occurs. This gap is called audit expectation gap. This could be minimized through self regulating auditing of the financial statement before the final auditing by auditors.
Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking deposits and that banks hold no excess reserves and households hold no currency. Calculate the money multiplier and money supply for this banking system.
Answer:
The money multiplier and money supply for this banking system is 10 and $1,000 billion respectively
Explanation:
The computation of the money multiplier and the money supply is shown below:
As we know that
Money multiplier is
= 1 ÷ required reserve ratio
= 1 ÷ 0.10
= 10
So, the money supply is
= Total Reserves × Money Multiplier
= $100 billion × 10
= $1,000 billion
hence, the money multiplier and money supply for this banking system is 10 and $1,000 billion respectively
If the Federal Reserve raises interest rates, what would you expect to happen to the price of outstanding bonds?
Answer: decrease
Explanation:
It should be noted that there is an inverse relationship between bonds and interest rate. This implies that when there is a rise in interest rates, the prices of bond will fall and when there is a fall in interest rates, the prices of bond will rise.
Since bonds typically pay fixed interest rate, this will becomes more attractive when there's a fall in interest rates and more investors will demand for bond which will invariably lead to rise in price.
Describe a time when your team or company was undergoing some change. How did that impact you, and how did you adapt?
Answer:
Our company had to undergo many changes during the lock down. We started working from home rather than going to office, not all the employees had computers or internet connection, so the HR department had to send computer to employees and they arranged the internet connection by themselves. It was bit uneasy to work from home in the beginning but we all adapted gradually and everything became normal.
Also, we had acquire new projects as the we were not getting work from some of the old projects.
Time management and world view college success
Explanation:
As most students discover, college is not the same as high school. For many students, college is the first time they are “on their own” in an environment filled with opportunity. And while this can be exciting, you may find that social opportunities conflict with academic expectations. For example, a free day before an exam, if not wisely spent, can spell trouble for doing well on the exam. It is easy to fall behind when there are so many choices and freedoms.
One of the main goals of a college education is learning how to learn. In this chapter we zoom in on learning how to skillfully manage your time. To be successful in college, it’s imperative to be able to effectively manage your time.
In the following Alleyoop Advice video, Alleyoop (Angel Aquino) discusses what many students discover about college: there is a lot of free time—and just as many challenges to balance free time with study time
Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks is greater than zero. b. Stocks that outperform the index in March always underperform it in April. c. Half of fund managers are able to beat their relevant index each year, before fees. d. Stocks that outperform the index in March always outperform it in April.
Answer:
b. Stocks that outperform the index in March always underperform it in April.
d. Stocks that outperform the index in March always outperform it in April.
Explanation:
The Efficient market hypothesis states that in an efficient market, all the available information in the market are reflected in the prices of the stocks being traded. As such, all stock are fairly priced.
Stocks that perform in a certain way in March and then in another way in April are violations of the hypothesis. This is because if indeed the market was efficient, the prices would adjust to reflect the different performances by month such that there would be no more fluctuations.
which statement is true The trial balance is completed to ensure that debits and credits are equal in the General Ledger
Answer: a. The trial balance is completed to ensure that debits and credits are equal in the General Ledger.
Explanation:
The Trial balance is used to ensure that all totals on the accounts on the debit side are equal to all totals on the accounts on the credit side.
The account totals are each listed on the debit and credit sides of the trial balance and then added up. If the amounts do not tally, it suggests that there is an error in the entries that needs to be fixed.
The statement of retained earnings or the statement of stockholders' equity reconciles the net income, dividends paid, and the change in retained earnings during a particular year.
Which of the following best describes shareholders' equity?
a. Equity is the difference between the paid-in capital and retained earnings.
b. Equity is the sum of what the initial stockholders paid when they bought company shares and the earnings that the company has retained over the years.
NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of today's paper. In its annual report this year, NOW Inc. reported a net income of $160 million. Last year, the company reported a retained earnings balance of $595 million, whereas this year it increased to $700 million. How much was paid out in dividends this year?
a. $265 million
b. $4 million
c. $55 million
d. $280 million
Answer:
1.
Option B is the correct answer.
2.
Dividends Paid = $55 million. Thus, option C is the correct answer.
Explanation:
1.
The statement about shareholders' equity given in option A that it is the difference between the paid-in capital and retained earnings is incorrect as the retained earnings are a part of the equity of shareholders and are included in the calculation of shareholders' equity. Thus, option B is the correct answer.
2.
The Net Income earned by a company is usually treated in two ways. It is either paid out as dividends to the shareholders or is retained in the business and transferred to the retained earnings account or both. Thus, we can calculate the amount of dividends paid by the following equation.
Closing balance of retained earnings = Opening balance of retained earnings + Net Income for the period - Dividends Paid
700 = 595 + 160 - Dividends Paid
700 + Dividends Paid = 755
Dividends Paid = 755 - 700
Dividends Paid = $55 million
According to classical macroeconomic theory, changes in the money supply affect: _________.(i) nominal variables, but not real variables.(ii) nominal variables and real variables. (iii) real variables, but not nominal variables.(iv) neither nominal nor real variables.
Answer: .(i) nominal variables, but not real variables
Explanation:
According to classical macroeconomic theory, changes in the money supply affect the nominal variables but the real variable are not affected.
According to the classical macroeconomic theory, it us believed that an increase in money supply will result into a rise in the availability of money in the market, thereby increasing consumers spending which will also lead to a rise in aggregate demand which in turn, causes inflation.
Thereby the nominal variables will be changed.