Answer:
Cause of a "Prior Period Adjustment in 2025 Statement of Retained Earnings:"
A. Failure to Accrue Revenue at 12/31/24, but not 12/31/21 Depreciation Overstatement.
Explanation:
A company's failure to accrue revenue in accordance with the accrual concept and revenue recognition principle means that there is a "Prior Period Error" which must be corrected retrospectively in the financial statements (Retained Earnings). Retrospective restatement involves the correction of the error arising from the recognition, measurement, and disclosure of amounts of elements of financial statements. The restatement is done as if a prior period error had never occurred.
Turnadot & Sons is a small wholesaler of decorative cast iron objects. The following events, related to a special customer order, occur as described below:
August 5, 2015: Turnadot receives the special order for 200 outdoor planters at a selling price of $50 each, including delivery at a future convenient time and location. The customer, with whom Turnadot has had a long-term, trouble-free relationship, pays $3,000 as a deposit and agrees to pay the rest on delivery. Turnadot immediately orders $4,000 worth of planters from its supplier and pays a $1,000 deposit for them.
August 27, 2015: Turnadot pays $3,000 balance due to the supplier upon delivery of the planters to its warehouse.
September 5, 2015: The customer calls for delivery of the planters, and pays the balance of $7,000 when they arrive at the customer site.
On August 5, 2015, which one of the following accounting entries, related to the $1,000 deposit paid to the supplier for the planters, should be recorded in Turnadot's financial accounting system?
A) Debit the current asset 'advances to suppliers' $1,000; credit cash $1,000
B) Debit cost of goods sold $4,000; credit cash $1,000; credit accounts payable $3,000
C) Debit cost of goods sold $1,000; credit revenues $1,000
Answer:
Turnadot & Sons
Accounting entries for a $1,000 deposit paid to the supplier:
A) Debit the current asset 'advances to suppliers' $1,000; credit cash $1,000
Explanation:
Option B and C are wrong, since it is when Turnadot & Sons receives the planters from its supplier that it can create Inventory account to record the purchase. Again, the question is discussing the deposit and not the other transaction that occurs alongside the deposit. With a debit to the current asset 'advances to suppliers' and a credit to the cash account for $1,000, the entry for the deposit is completed.
Fayol's Principles of Management provide an accurate description of what managers actually do on the job.
a) true
b) false
Answer:
b) false
Explanation:
This statement is false, because Fayol's management principles were an administrative methodology that provided for observing the facts of an organization and the experiment, being therefore principles that are unable to provide an accurate description of what managers do in the job.
Its management principles consist of: Division of Labor, authority, discipline, management unit, control unit, Subordination of individual interests to the common good, remuneration, centrality, hierarchy, order, equity, stability, initiative and team spirit.
He believed that this set of principles would lead to more effective management where the company would achieve greater efficiency through structural organization and the control and monitoring of functions.
In an era of particularly low interest rates, which of the following bonds is most likely to be called? A. zero-coupon bonds B. coupon bonds selling at a discount C. Coupon bonds selling at a premium D. floating-rate bonds
Answer: coupon bonds selling at a premium
Explanation:
A premium bond is simply a bond that is being traded at a higher level than it's par value. A bond will typically trade at a premium when such bond gives an
interest rate which is above the current interest rates that is being offered for new bonds.
Therefore, in an era of particularly low interest rates, coupon bonds selling at a premium is most likely to be called.
The elements of job design involve:______.
a. task analysis
b. worker analysis
c. environmental analysis
d. all of the above
Answer:
a task analysis
Explanation:
Task analysis is the process of learning about ordinary users by observing
them in action to understand in detail how they perform their tasks and
achieve their intended goals.
Which one of the following is not one of the major drivers of unethical managerial behavior?a. Intense competitive pressures. b. Overzealous pursuit of personal gain, wealth, and other self-interests. c. A company culture that puts the profitability and good business performance ahead of ethical behavior. d. Heavy pressures placed on company managers to meet or beat earnings targets. e. The pervasiveness of immoral and amoral businesspeople.
Answer: e. The pervasiveness of immoral and amoral businesspeople.
Explanation:
Managers are sometimes pressured into engaging in unethical behaviors due to intense competitive pressures that can determine whether they keep their jobs especially in a company culture that puts the profitability and good business performance as the paramount yardstick of success.
Heavy pressures placed on company managers to meet or beat earnings targets can also lead to unethical behavior and on a more person level, so can an overzealous pursuit of personal gain, wealth, and other self-interests.
The pervasiveness of immoral and amoral business-people is not a major driver of unethical managerial behavior.
When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n):___________
A. increase in the demand for gasoline.
B. decrease in the demand for gasoline.
C. increase in the supply of gasoline.
D. decrease in the supply of gasoline.
Answer:
C. increase in the supply of gasoline.
Explanation:
The prices of petroleum products are very sensitive to demand and supply. Petroleum products usually have their prices go up when supply is short, or when demand is high. When there is a decrease in the demand for petroleum products, or an increase in the supply, the value drops, and the price declines.
Answer:
c
Explanation:
The bond has a coupon rate of 6.11 percent, it makes semiannual payments, and there are 2 months to the next coupon payment. A clean price of $977 and the par value is $1,000. What is the invoice price?
Answer:
$997.37
Explanation:
For computing the invoice price first we have to determine the accrued interest which is shown below:
Accrued interest is
= Par value × coupon rate × remaining months ÷ total months
= $1,000 × 6.11% × 4 months ÷ 12 months
= $20.37
Now
Invoice price is
= Clean price + Accrued interest
= $977 + $20.37
= $997.37
A company has bonds outstanding with a par value of $100,000. The unamortized premium on these bonds is $2,700. If the company retired these bonds at a call price of 99, the gain or loss on this retirement is:________.
a. $1,000 gain.
b. $1,000 loss.
c. $2,700 loss.
d. $2,700 gain.
e. $3,700 gain.
Answer:e. $3,700 gain.
Explanation:
Par value of Bonds =$100,000
Unamortized premium= $2,700
Carrying/ Book value of bonds= Par value of Bonds +Unamortized premium
= $100,000 + $2,700 =$102,700
Amount at which bonds retired $100,000 x 99% = $99,000
Gain on retirement of bonds =Book value of bonds- Amount at which bonds retired
=$102,700- $99,000 = $3,700
On September 1, 2021, Blue Co., issued $1,600,000 of its 10% bonds at 98 plus accrued interest. The bonds are dated June 1, 2021 and have an effective interest rate of 11%. Interest is payable semiannually on June 1 and December 1. At the time of issuance, Blue would receive cash of:
Answer:
$1,608,000
Explanation:
the clean price = $1,600,000 x 0.98 = $1,568,000 (it does not include accrued interests)
accrued interests = $1,600,000 x 10% x 3/12 months = $40,000
dirty price = clean price + accrued interests = $1,568,000 + $40,000 = $1,608,000
the journal entry should be:
September 1, 2021
Dr Cash 1,608,000
Dr Discount on bonds payable 32,000
Cr Bonds payable 1,600,000
Cr Interest payable 40,000
Which statement is FALSE in regards to the treatment of direct material costs under an activity-based costing system? g
Answer: Direct material costs are not included in the product cost under an ABC system.
Explanation:
In the activity-based costing system, indirect costs are assigned to some products so that a true reflection of the cost of making a product is revealed as some indirect costs do in fact contribute to production.
The inclusion of Direct costs in the calculation of production cost however, are not denied here. Direct costs are included as a product cost as they are the main costs of the product.
It is therefore false that direct material costs are not included in the product cost under an ABC system.
In public stock companies, which of the following expectations of principals is most likely to lead to principal-agent problems?A) The expectation that the agent will follow the country's laws and regulationsB) The expectation that the agent will go above and beyond the call of dutyC) The expectation that the agent will reconnect economic and social needsD) The expectation that the agent will act in the principal's best interest
Answer:
C
Explanation:
The principal-agent problem is the conflict of interest that occurs between the principal and the agent. The principal expects the agent to act in his best interest but this might not be the case as the agent might pursue his own personal interest to the detriment of the principal.
For example, an agent might take on a project that has a negative NPV because he wants to increase the amount of project he handles so he would appear more important. This would be at the detriment of the principal but an advantage to the agent
In the context of human resource management challenges, which of the following statements is true of women workers?A) Many professional women step out of the workforce early to start their own companies.B) Their work schedules are more flexible than their male counterparts'.C) They are not usually willing to pay dues.D) Women employees cannot be retained with flextime benefits.
Answer: A) Many professional women step out of the workforce early to start their own companies.
Explanation:
There are several human resource management challenges such as compliance with organization rules and laws, adaptation to innovation, recruitment challenges etc.
In the context of human resource management challenges, the most likely true option is that many professional women step out of the workforce early to start their own companies. Unlike their male counterparts who can stay for a very long time, the reverse is usually the case with women.
A price range at which technicians would expect a substantial increase in the demand for a stock is called
Answer:
Support level.
Explanation:
A support level is the price level at which an asset would not fall beneath for an amount of time.The support level is formed by buyers going into the market anytime the asset falls down to a lower price. We can do a chart of the support level by drawing a line along the lowest level for that time period in consideration
Our company manufactures and sells calculators for $80 each. A major University has offered us $55 per calculator for a one-time order of 500 calculators. Our costs to manufacture a calculator include: direct materials, $25 per unit; direct labor, $20 per unit; variable factory overhead, $15 per unit; and fixed manufacturing overhead, $12 per unit. Assume that we have excess capacity and the special order will not affect regular sales. What is the change in operating income that would result from accepting this special sales order?
Answer:
Effect on income= $2,500 decrease
Explanation:
Giving the following information:
A major University has offered us $55 per calculator for a one-time order of 500 calculators.
direct materials= $25 per unit
direct labor= $20 per unit
variable factory overhead= $15 per unit
Because there is an unused capacity and it is a special offer, we will not take into account the fixed costs.
Unitary cost= 25 + 20 + 15= $60
Effect on income= 500*(55 - 60)
Effect on income= $2,500 decrease
Task 1: At December 31, 2019, House Co. reported the following information on its balance sheet. Accounts receivable $960,000 Less: Allowance for doubtful accounts 80,000 During 2020, the company had the following transactions related to receivables: Sales on account $3,700,000 Sales returns and allowances 50,000 Collections of accounts receivable 2,810,000 Write-off s of accounts receivable deemed uncollectible 90,000 Recovery of bad debts previously written off as uncollectible 29,000 Instructions Prepare the journal entries to record each of these fi ve transactions. Assume that no cash discounts were taken on the collections of accounts receivable. Enter the January 1, 2020, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances. Prepare the journal entry to record bad debt expense for 2020, assuming that an aging of accounts receivable indicates that expected bad debts are $115,000. Compute the accounts receivable turnover for 2020 assuming the expected bad debt information provided in c. Task II: Suppose the amounts presented here are basic financial information (in millions) from the 2020 annual reports of Nike and adidas. Nike adidas Sales revenue $19,176.1 $10,381 Allowance for doubtful accounts, beginning 78.4 119 Allowance for doubtful accounts, ending 110.8 124 Accounts receivable balance (gross), beginning 2,873.7 1,743 Accounts receivable balance (gross), ending 2,994.7 1,553 Instructions: Calculate the accounts receivable turnover and average collection period for both companies. Comment on the difference in their collection experiences
Answer
The answer is 22
Explanation:
because its so mad
Do you believe such tools in the enterprise offer work productivity and efficiency?
Answer:
Yes, I do believe
Explanation:
A tool helps an performer to improve his or her work productivity and efficiency by recording his or her performance history, analyzing and resulting in which skill or feature should become better. However, any improvement in productivity and efficiency requires the performer's both determination and actions towards the designed outcomes.
Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.
1. January 1 Issue 10,000 shares of common stock in exchange for $42,000 in cash.
2. January 5 Purchase land for $24,000. A note payable is signed for the full amount.
3. January 9 Purchase storage container equipment for $9,000 cash.
4. January 12 Hire three employees for $3,000 per month.
5. January 18 Receive cash of $13,000 in rental fees for the current month.
6. January 23 Purchase office supplies for $3,000 on account.
7. January 31 Pay employees $9,000 for the first month’s salaries.
Required:
1. Record each transaction. Green Wave uses the following accounts: Cash, Supplies, Land, Equipment, Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense.
2. Post each transaction to T-accounts and compute the ending balance of each account. Since this is the first month of operations, all T-accounts have a beginning balance of zero.
3. After calculating the ending balance of each account, prepare a trial balance.
Answer:
Required 1 : Recording
January 1
Cash $42,000 (debit)
Common Stock $42,000 (credit)
January 5
Land $24,000 (debit)
Note Payable $24,000 (credit)
January 9
Equipment $9,000 (debit)
Cash $9,000 (credit)
January 12
Salaries Expense $9,000 (debit)
Accounts Payable $9,000 (credit)
January 18
Cash $13,000 (debit)
Service Revenue $13,000 (credit)
January 23
Supplies $3,000 (debit)
Accounts Payable $3,000 (credit)
January 31
Accounts Payable $9,000 (debit)
Cash $9,000 (credit)
Required 2 : T - Accounts
Cash Account
Debit :
Common Stock $42,000
Service Revenue $13,000
Totals $55,000
Credit :
Equipment $9,000
Salaries Payable $9,000
Balance c/ d $37,000
Totals $55,000
Common Stock Account
Debit :
Balance c/d $42,000
Totals $42,000
Credit :
Cash $42,000
Totals $42,000
Land Account
Debit :
Note Payable $24,000
Totals $24,000
Credit :
Balance c/d $24,000
Totals $24,000
Note Payable Account
Debit :
Balance c/d $24,000
Totals $24,000
Credit :
Land $24,000
Totals $24,000
Equipment Account
Debit :
Cash $9,000
Totals $9,000
Credit :
Balance c/d $9,000
Totals $9,000
Accounts Payable Account
Debit :
Cash $9,000
Balance c/d $3,000
Totals $12,000
Credit :
Salaries Expense $9,000
Supplies $3,000
Totals $12,000
Salaries Expense Account
Debit :
Accounts Payable $9,000
Totals $9,000
Credit :
Balance c/d $9,000
Totals $9,000
Supplies Account
Debit :
Accounts Payable $3,000
Totals $3,000
Credit :
Balance c/d $3,000
Totals $3,000
Service Revenue Account
Debit :
Balance c/d $13,000
Totals $13,000
Credit :
Cash $13,000
Totals $13,000
Required 3 : Trial Balance
Debit Credit
Cash Account $37,000
Common Stock $42,000
Land $24,000
Note Payable $24,000
Equipment $9,000
Accounts Payable $3,000
Salaries Expense $9,000
Supplies $3,000
Service Revenue $13,000
Totals $82,000 $82,000
Explanation:
Transactions are first recorded in the Journals, then posted to T - Accounts. The T - Account Balances are used to construct the Trial Balance.
Gelb Company currently manufactures 42,000 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $87,000 per year, and allocated fixed costs are $84,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 42,000 units and buying 42,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?
Answer:
It is more convenient to buy the component.
Explanation:
Giving the following information:
Production costs:
Variable costs are $6.25 per unit
fixed costs related to making this component are $87,000 per year
The company is considering buying this component from a supplier for $3.70 per unit.
We will take into account only the avoidable costs.
Make in-house:
Total cost= 6.25*42,000 + 87,000= $349,500
Buy:
Total cost= 42,000*3.7= $155,400
It is more convenient to buy the component.
When contemporary leadership researchers analyze conversations between leaders and subordinates in a workplace, they are using which approach in their
Answer:
Trait approach
Explanation:
A manager's trait represents his personality. Thus, by using the Trait approach the researchers would be able to identify patterns of behavior and thoughts of the manager that are stable over time. The trait approach may include information about:
whether the manager is nice when speaking with employees,or is he rude with them?The underlying reason why trade benefits both sides of a trading arrangement is rooted in the concept of __________________.
Answer:
opportunity cost
Explanation:
The concept of Opportunity cost deals with the idea that individuals, investors, or business owners, due to scarcity of resources, lost possible benefits that could be gained, as he or she chooses alternative choice.
Hence, the underlying reason or factor trade benefits both sides of a trading arrangement is rooted in the concept of OPPORTUNITY COST.
Therefore, the right answer is Opportunity cost.
Suppose that the Federal Reserve wants to target a higher interest rate, the Federal Reserve would then:
Answer:
if the FED wants to increase interest rates, it will generally engage in a contractionary monetary policy. This means that it will decrease the money supply in the economy. A contractionary monetary policy takes place when the FED starts to sell US securities and that way it will take away money from the economy. But in order to make more people want to purchase the securities, it will generally increase the interest rates.
Explanation:
If Jason did not want to support Gina’s plan solely because of the unpleasant consequences associated with approving a deal absent shareholder consent, he would be on the ______ level of Kohlberg’s theory.
Answer:
Preconventional
Explanation:
Lawrence Kohlberg was an American psychologist that postulated a theory on the stages of moral development.
According to him the stages of moral development are pre-conventional, conventional, and post-conventional.
In the pre-conventional people follow standard set of rules and are afraid to break the rules because of the consequences.
Conventional stage is where moral standards are internalised and reasoning is influenced by the group one belongs to.
Post-conventional stage is where choices are based on individual principle.
In this scenario Jason did not want to support Gina’s plan solely because of the unpleasant consequences associated with approving a deal absent shareholder consent. This is the pre-conventional stage
Although IRP tends to hold, it may not hold precisely all the time:__________
A) due to transactions costs, like the bid ask spread.
B) due to asymmetric information.
C) due to capital controls imposed by governments.
D) both a and c
Answer:
The correct option is D) both a and c.
Explanation:
Interest Rate Parity (IRP) can be described as the arbitrage condition that must hold when equilibrium occurs in the in the international financial market.
Arbitrage refers to the purchase and sale of financial assets such as securities, currency, or commodities, simultaneously in different markets or in forms of derivative forms with the aim of making profit from the differences in the prices of the same asset.
In any market, IRP will always hold because that indicates equilibrium in the market.
However, IRP may fail to hold all the time due to transactions costs, like the bid ask spread, and also due to capital controls imposed by governments.
Whenever IRP does not hold, the exchange rates and interest rates would be brought back into line by the pressure from arbitrageurs.
Based on the explanation above, the correct option is D) both a and c.
Hilltop Bank is an HDC of a note for $1,000 on which there is the forged signature of "Rob." If sued on the note by Hilltop, Rob's best defense would be
Answer:
forgery.
Explanation:
In legal terms, forgery refers to falsifying documents or any other object of value and intend to negotiate it, collect it or benefit in any other way from it. But a forged document is not a valid document, therefore, the forged note that Hilltop Bank holds is no good. Forgery is a crime and it is a type of fraud.
Suppose it takes 1.82 U.S. dollars today to purchase one British pound in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound buy in 30 days
Answer:
$2.0384
Explanation:
Calculation for how many dollars will a pound buy in 30 days
How many dollars will a pound buy =1.82 x (1+0.12)
How many dollars will a pound buy=1.82× 1.12
How many dollars will a pound buy= $2.0384
Therefore the amount of dollars that a pound will buy in 30 days will be $2.0384
Think of a time when effective or ineffective communication affected your success at home, school, or work.In paragraph 1, describe what happened, in detail.
In paragraph 2, explain how strong communication contributed to or could have improved the situation’s outcome?
Answer:
Explanation:
How ineffective communication can affect your success at home, school, or work
1. At home, ineffective communication can build hatred among family members. One person doesn't have to do something offensive before hatred is thrown at him or her. An inactivity (something person A expects or expected of person B but that person B didn't do) could cause some feud and transfer of aggression from person A to person B.
Person A is/was supposed to out-rightly tell the problem to person B, instead of getting upset that person didn't notice his/her sore mood.
(b) In the case of safety, members of a home should let one another know their movements, even if they don't say the exact destination.
2. At school, there are teachers, students and administrators. A wise student (especially at the higher education level) should communicate with classmates so as to find out information from the lecturer or teacher and ensure he/she is on track. Every student should also communicate with teachers and administrators (either directly or through their parents), in order to know new rules and regulations, as well as news.
3. At work, interpersonal communication skills are necessary for survival. Emotional intelligence or endurance of staff, boss, and consumer characters is key. All feelings shouldn't be made obvious, including feelings of excitement. Moves such as moves to leave the company, should be kept private.
During its first month of business, Kochanski Company reported net cash flows from operating activities of $5,000, net cash flows from investing activities of ($10,000), net cash flows from financing activities of $50,000. What was the net increase in cash
Answer:
Net cash increase is $45000.
Explanation:
Net cash flow from (OA) operating activity = $5000
Net cash flow from (I) investing = $10000
Net cash flow from (F) financing activity = $50000
Net cash increase = Operating activity cash flow + Financing activity cash flow - Net cash flow from investing
Net cash increase = 5000 + 50000 – 10000
Net cash increase = 45000
Quentin's December 31, 2013, inventory T-account debit balance was $56,000. During 2014, its inventory purchases amounted to $25,000, and there were no inventory-related write-downs or losses. What was Quentin's 2014 cost of goods sold expense?
Quentin Company
Balance Sheet as of December 31,2014
Assets Liabilities
Current Assets Current Liabilities
Cash $42,000 Accounts payable 30,000
Inventory $36,000 Short-term debt 42,000
Prepaid expense 12.000 Total current liabilities 72,000
Total current assets90,000
Non-current Liabilities
Bond payable 34,000
Plant and equipment
(net) 56,000 Owner's Equity
Patent (net) 24,000 Common stock 20,000
Total Assets $170,000 Retained earnings 44,000
Total Liabilities and
Owners Equity $170.D00
a. $5,000.
b. $67,000.
c. $20,000.
d. $45,000.
Answer:
Quentin's 2014 cost of goods sold expense is d. $45,000
Explanation:
Cost of Sales is a line item that is found in the trading account and can be determined as follows :
Cost of Sales Calculation
Opening Inventory $56,000
Add Purchases $25,000
Less Closing Stock ($36,000)
Cost of Goods Sold $45,000
________ is an underlying assumption of cost-volume-profit analysis. A : All units produced are either sold or in ending inventory B : The behavior of both costs and revenues is curvilinear throughout the entire range of the activity index C : All costs can be classified as either variable or fixed with reasonable accuracy D : Changes in activity and other factors affect costs
Answer:
C : All costs can be classified as either variable or fixed with reasonable accuracy
Explanation:
Cost volume profit analysis (CVP) makes the following assumptions when it is used to determine how any change in costs can affect income:
costs can be classified as fixed or variable, and they are constantrevenues are linear with a given rangeall units produced are soldcosts will only change if output changesWhat is a client's total return on his portfolio after one year if he invests $10,000 in each of three stocks, X,Y, and Z
Answer:
The total return on the clients portfolio after one year is $0.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
What is a client's total return on his portfolio after one year if he invests $10,000 in each of three stocks, X,Y, and Z? He received $200 in dividends from company X, no dividend from company Y, and $300 in dividends from company Z. After one year the stock price of company X has increased 10%, the stock price of company Y has decreased 15%, and the stock price for company Z has remained unchanged and all three stocks are sold by the client.
[A] 0%
[B] 1.6%
[C] 3.3%
[D] 5.0%
The explanation of the answers are now given as follows:
Total return on a portfolio refers to the addition of dividends received and capital gains minus the capital losses from the stocks in the portfolio.
For this total return can be calculated as follows:
Total dividends received = Dividend from stock X + Dividend from stock Z = $200 + $300 = $500
Capital gains from Stock X = Amount invested in X * Percentage of appreciation = $10,000 * 10% = $1,000
Capital loss from Stock Y = Amount invested in Y * Percentage of decrease = $10,000 * 15% = $1,500
Therefore, we have:
Total return = Total dividends received + Capital gains from Stock X - Capital loss from Stock Y = $500 + $1,000 - $1,500 = $0
Therefore, the total return on the clients portfolio after one year is $0.