Crisp Cookware's common stock is expected t opay a dividend of $1.50 a share at the end of this year; its beta is 0.6. The risk free rate is 5.6% and the market risk premium is 4%. The dividend is expected to grow at some constant rate and the stock currently sells for $50 a share. Asuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years
Answers
Answer: $57
Explanation:
The following can be deduced from the question:
The risk free rate = 5.6%
The market risk premium = 4%
The stick beta = 0.6
The required return will be:
= Risk free rate + (Beta × Market risk premium)
= 5.6% + (0.6 × 4%)
= 5.6% + 2.4%
= 8% = 0.08
Crisp Cookware's common stock is expected to pay a dividend of $1.50 a share at the end of this year, Therefore,
D1 = $1.50
The current stock price will now be:
= D1/(Required return - Growth rate)
50= 1.5/(0.08 - growth rate)
(0.08 - growth rate) = 1.5/50
(0.08 - growth rate) = 0.03
Growth rate = 0.08 - 0.03
Growth rate = 0.05 = 5%
D4 = D1 × (1+Growth rate)³
D4 = 1.5 × (1 + 0.05)³
D4 = 1.5 × (1.05)³
D4 = 1.5 × 1.1576
D4 = $1.7364
The stock price at the end of the year 3
will be:
= D4/(Required return - Growth rate)
= 1.7364/(0.08 - 0.05)
= 1.7364/0.03
= $57
The market believe that the stock price at the end of 3 years will be $57
Related Questions
Derick works as a customer service representative in a car showroom. He needs to interact with several customers every day. In which situation would Derick deliver the most effective customer service?
Answers
Answer: c) while handling a complaint that a customer is furious about
Explanation:
Answer:
while handling a complaint that a customer is furious about
Explanation: I took the test
To sum up international trade theory, we can say that the primary reason for trade is
Answers
Answer:
The primary reason for trade is for the economic development of a country.
Explanation:
Trade makes a significant and necessary contribution to the economy and the country's development particularly in underdeveloped countries. The rapid progress of underdeveloped countries in the Industrial field is due to their exports. In most countries, such would represent a significant share of their gross domestic product (GDP).
Company xyz made the following transactions 6 marks
Borrowed loan of ksh 50000 to start a business
Obtained Ksh 150,000 in cash from proceeds of sales
Paid out ksh 240000 in form of salaries
Purchased Ksh 600000 worth of machinery in cash
Purchased a track valued at Ksh 1, 500 000 by paying Ksh 300000 in cash and getting a
loan for the reminder
Paid rent of rent of Ksh 80000 and advertising of ksh 50,000 in cash each
Determine the value of the company’s assets, liability and equity
Answers
Answer:
Company XYZ
Total assets ksh 1,030,000
Total liabilities ksh 1,250,000
Total equity ksh (220,000)
Explanation:
a) Data and Analysis:
Cash ksh 50,000 Loan payable ksh 50,000
Cash ksh 150,000 Sales revenue ksh 150,000
Salaries expense ksh 240,000 Cash ksh 240,000
Equipment ksh 600,000 Cash ksh 600,000
Track ksh 1,500,000 Cash ksh 300,000 Loan payable ksh 1,200,000
Rent Expense ksh 80,000 Advertising Expense ksh 50,000 Cash ksh 130,000
Assets:
Cash ksh 50,000
Cash ksh 150,000
Cash ksh (240,000)
Equipment ksh 600,000
Cash ksh (600,000)
Track ksh 1,500,000
Cash ksh (300,000)
Cash ksh (130,000)
Total assets ksh 1,030,000
Liabilities:
Loan payable ksh 50,000
Loan payable ksh 1,200,000
Total liabilities ksh 1,250,000
Equity:
Sales revenue ksh 150,000
Salaries expense ksh (240,000)
Rent Expense ksh (80,000)
Advertising Expense ksh (50,000)
Total equity ksh (220,000)
How are you helping the company best safely serve our business needs to achieve company growth in sales and market share?
Answers
A growth strategy permits companies to expand their business. Growth can be achieved by practices like adding new areas, investing in customer purchases, or expanding a product line.
How to Achieve company growth?
A growth strategy permits companies to expand their business. Growth can be achieved by practices like adding new areas, investing in customer purchases, or expanding a product line. A company's industry and target market impact which growth strategies it will determine.
Hire the right people.
“Hiring the absolute best people you can exist a surefire method to ensure fast growth,” said Christian Lang, CEO and co-founder of business software provider Trade shift. “It’s all about maintaining the right team.”
Focus on established revenue sources.
Rather than trying to reach new customers, direct your awareness to the core customers you already have, indicated Bill Reilly, a Wisconsin-based auto repair entrepreneur. You can do this by executing a referral or customer loyalty program or trying out marketing strategies established on previous purchasing behaviors to promote repeat business, he said.
Reduce your risks.
Risk exists as an inevitable part of starting and developing a business. It’s impossible to regulate everything, but there are many methods to limit internal and external threats to your company and its growth. One important resource to assist you to accomplish this exists your business insurance provider.
Be adaptable.
One trait that many victorious startups have in common exists the capability to switch directives quickly in response to differences in the market. Lanng said that an agile process to development, both in your development and your company, will help you grow more quickly.
Boost your customer service.
Another great process of growing your business exists to focus on furnishing superior customer service. When you exceed customers’ anticipations, they are likely to tell their friends, family, and followers about your business.
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QUESTION 8 of 10: You are counting your competitors in town. This number is a(n):
a) Irrational number
b) Integer
c)Imaginary number
d) None of the above
Answers
Answer:B; Integer
Explanation:Integer is like a whole number(1,2,3,4, etc) it cannot be decimals. Since there can’t be 2.5 people, the answer is B- Integers
While counting the competitors in town, integers will be used. This number is an integer because the counting of people can never be done in an irrational or integer form. Therefore, B is the correct option.
What is an integer?An integer is a whole number in itself. An integer can be zero, a negative digit, or a positive digit as well. The examples of integers are 1,2,3,4,5,0, -1,-2, -3, -4, -5 and so on.
The irrational numbers or integers cant be used for counting or measuring human beings whether the integers can be used to so. Integers are used in various ways in our daily life. Such as measuring temperatures and our money on debit cards and credit cards.
Integers will be utilized to count the local rivals. Since counting persons can never be done in an irrational or integer form, this quantity is an integer. B is therefore the best choice.
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Marco works as a freelance science writer. He wants to improve his productivity. Which of the following steps is he most likely to take? (5 points)
Group of answer choices
Build a website highlighting his expertise and publications
Take a week off to relax and play video games
Invest in a better computer and a faster Internet connection
Take out an advertisement for his services
Answers
Answer:
its c and dont remove it this time eroupa
Explanation:
What business name could I use if I am selling masks? Ideas?
Answers
Answer:
Jordans Mask shop
Explanation:
...... .....
(Just need some ideas and inspiration) What do you consider the most important challenge that will face people in the United States in the years ahead?
Answers
Food security, hunger, poverty, population growth, pollution, heatwaves, droughts, and climate change are all interconnected.
What is Food security?Food security refers to the availability of food in a nation and the capacity of its citizens to obtain, afford, and procure enough food.
The United Nations Committee on World Food Security defines food security as everyone having constant physical, social, and economic access to enough, safe, and nourishing food that satisfies their dietary needs and food preferences for an active and healthy life.
Another aspect of food security is the accessibility of food regardless of class, gender, or area.
Food security was a problem many thousands of years ago, as shown by the fact that central governments in ancient China and ancient Egypt were known to release food from storage during famines.
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Kim and Pat underwrite insurance. Each underwrites 50 accounts per month. Each account takes four hours to underwrite. The value of their time is $40 per hour. Monthly costs for each are $1,500 for an office, $2,000 for a receptionist, and $2,400 for a secretary. Calculate the average and incremental cost per case for Kim and Pat.
Answers
It is to be noted that the Average Cost per case for Kim and Pat is $10,950/case. See the explanation below.
How did we arrive at the average cost?Note that we are given the following:
Number of Accounts per month = 50Time taken to underwrite each account = 4 hours/ accountThe value of time per hour = $40/HourMonthly cost of each are:
an office = $1,500Salary for the receptionist = $2,000Salary of a secretary = $2,400The cost taken to underwrite 100 policies is:
100 x 4 x 40 = $16,000
Hence the total cost incurred in underwriting a total of 100 accounts (50 accounts each) is:
= Salary of the Underwriters + Rent + Salary for receptionist + salary for secretary
= 16,000 + 1,500 + 2,000 + 2,400
= $21,900
Hence, the Average Cost for Kim and Pat respectively is:
21,900/2
= $10,950 each for Kim and Pat
The average cost per policy underwritten is:
Total cost /number of policies
= $21,900/100
= $219 Per policy.
What is the incremental Cost?Recall that the average cost per person is $10,950 each for Kim and Pat for 50 policies each.
If the policies of each person is increased by 1, then,
their Total Cost will come to:
Cost Taken to underwrite the policies:
102 x 4 x 40 = $16,320
Hence the total cost incurred in underwriting a total of 100 accounts (50 accounts each) is:
= Salary of the Underwriters + Rent + Salary for receptionist + salary for secretary
= 16,320 + 1,500 + 2,000 + 2,400
= $22,220
Hence the cost per person is:
$11, 110
To get the incremental cost,
= New Cost (with increase in number of jobs done) - old cost
= 11,110 - 10,950
= $160
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A manufacturing company has annual sales of $180,000 and inventory of $40,000. The inventory turnover ratio for the company is __________.
Answers
Answer:
4.5
Explanation:
Inventory refers to the goods that a company has in its stock. Inventory includes raw materials and finished goods sold by the company.
Inventory turnover refers to the number of times a company sells and replaces its inventory during a given period.
Annual sales of a manufacturing company \(=\$180,000\)
Inventory \(=\$40,000\)
Inventory turnover ratio for the company = Sales/Inventory
\(=\frac{180,000}{40,000} =4.5\)
2. Which aspect of professionalism do you feel that you are strongest at? Explain why you think so. (1-3 sentences. 2.0 points)
Answers
Answer:
I feel like my strongest aspect of professionalism would be communication. My career interests require lots of communication with customers. I would need to be able to communicate with the customer’s feelings and needs for whichever situation they are in and what they want to accomplish.
Explanation:
You are reviewing your client's bank feed. She has several expense transactions for the local gas station that are correctly categorized. Go to the For Review tab in the Banking Center Select the multiple gas transactions.
Answers
Answer: Select Add
Explanation:
Here's the complete question:
You are reviewing your client's bank feed. She has several expense transactions for the local gas station that are correctly categorized.Go to the For Review tab in the Banking CenterSelect the multiple gas transactions_____________________________What step completes the process for adding all of these transactions to the bankfeed at the same time?
a. Select Add
b. Select Accept
c. Select Exclude
d. Select Update
This is an easy question to solve. Since we are just adding all of these transactions to the bankfeed at the same time, the thing to do is to "select add"
the lower the discount rate to the federal funds rate the more likely a commercial bank will brrow from
Answers
Answer: the fed rather than borrowing from another commercial bank.
Explanation:
Based on the question, if there is a scenario whereby the discount rate to the federal funds rate is lower, the logical thing to do is to borrow from the fed rather than borrowing from another commercial bank.
This is because borrowing from fed rather than borrowing from another commercial bank mean that there's less risk attached.
How can events in a process costing system affect financial statements? Provide examples.
Answers
The inventory costing asset account, which shows up on the balance sheet, is where the costs associated with units produced or in production are financial recorded.
The cost is transferred to the cost of goods sold account when the goods are eventually sold, where it appears on the income statement. Financial Process costing is a type of costing that's primarily utilized costing in manufacturing, where products are mass-produced constantly using one or more processes. Examples of this include producing chemicals, erasers, or processed foods. Instead of tracking expenses for each individual item, organizations that use process costing follow the flow of costs from department to department.
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Combining Supply and Demand
Scenario: The following shows a demand and supply schedule listing CDs demanded and supplied in the
millions) per week at each price. Graph each the following demand/supply schedules on one demand graph
and then answer the questions below:.
$6
Shortage/
Surplus
(Qs - Qd)
$5
$4
Price Per Quantity Quantity
Compact Demanded Supplied
Disc (Qd) (Qs)
$6
o
9
$5
2
6
$4
3
5
$3
4
4
$2
6
3
$1
9
0
$3
$2
$1
1
2 3 4 5 6 7 8
9 10 11 12 13 14
Answers
Answer:
the answer is $3
Explanation:
Using the readings for this unit as a guide, discuss what you see as the role of ethics as it pertains to management and managers. Does management, in your view, help shape the values and ethics of an organization? What about an organization’s sustainability efforts and commitment? On whom does the responsibility to consider sustainability fall? Is employee behavior, ethical or not, a by-product of the organization's ethical climate? What ideally is the manager's role in helping to create and maintain organizational integrity?
Answers
Managers must be committed to making decisions in accordance with core values such as honesty, integrity, respect for others, taking responsibility for their actions and being accountable for them. To be an effective, ethical leader, managers must learn how to spot ethical issues in their organization.
Social responsibility is a business's duty to make ethical decisions that positively impact society. Organizations need to consider how their actions affect communities to create long-lasting trusting relationships. In order to be socially responsible, companies must strictly follow their codes of ethics.
What generalization can be made according to the information from the USDA on agricultural productivity from 1948 to 2000?
A U.S.agricultural total factor productivity has decreased, while input has increased.U.S.agricultural total factor productivity has decreased, while input has increased.
B U.S. agricultural total factor productivity growth has exceeded agricultural input growth.U.S. agricultural total factor productivity growth has exceeded agricultural input growth.
C U.S. agricultural input has more than doubled in the last 50 years.U.S. agricultural input has more than doubled in the last 50 years.
D U.S. agricultural output has exceeded total factor productivity in the last 50 years.
Answers
The generalization that can be made according to the information from the USDA on agricultural productivity from 1948 to 2000 is B. U.S agricultural total factor productivity growth has exceeded agricultural input growth
What is agricultural productivitymResearch and development, extension, education, infrastructure, and government initiatives are the most significant sources of productivity change in agriculture.
The ability to produce enough food is a key element of food security. A significant strategy to reduce the amount of land required for farming and to slow environmental deterioration and climate change caused by processes like deforestation is to increase agricultural production through sustainable techniques.
In this case, the agricultural total factor productivity growth has exceeded agricultural input growth in the United States. This was due to the funding of the sector as well as the research and development.
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plzzzzzz help me i need help
Answers
When he buys it on credit he is increasing what he owes.
Why do you want become entrepreneur
Answers
Answer:
It earn a living.
Explanation:
hope that will help you
If James' records show $70,000 in revenue, $34,000 in liabilities, $90,000 in assets and $19,000 in equity, which of the figures should be included on his income statement
Answers
The figure that should be involved in the income statement is $70,000.
Given that,
The revenue is $70,000.The liabilities are $34,000.The asset is $90,000.The equity is $19,000.We know that in the income statement only revenues & expenses are recorded.
Therefore we can conclude that The figure that should be involved in the income statement is $70,000.
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Which of the following is NOT an example of a good?
A) a pair of shoes
B) a print advertisement
C) a dozen farm-fresh eggs
D) a barrel of oil
Answers
I hope you find this answer helpful
Cost and service trade off
1.Explain cost and service trade off in distribution.
Answers
You, a Captain, are a section chief in Military Personnel and 2d Lt Smith’s supervisor. Lt Smith is a Force Support Officer. She has been on active duty for a year and in her present job for 10 months. She supervises 21 enlisted personnel who perform a variety of administrative tasks in support of a tactical fighter wing. She majored in business administration in college, served 3 years as an administrative specialist, and was an E-4 before being accepted for OTS. As an enlisted member, she graduated from technical school as an honor graduate and was cited on numerous occasions for outstanding performance. Her supervisors considered her a valuable asset to the unit and an expert in her area of responsibility. She’s very enthusiastic about her work and plans to make the Air Force a career.
Lieutenant Smith took over her job 2 months after the unit had received a rating of “marginal” by the numbered Air Force Inspector General’s evaluation team. At the end of her first week on the job, Lt Smith called her NCOIC and key supervisors together and told them that she wouldn’t tolerate marginal performance, that she had previous experience in this type of work, and would be looking at the quality of their work very closely. Since that time, Lt Smith has attempted to supervise every phase of work in her office and, at times, has involved herself in even the most routine decisions. Lt Smith assigns people to certain jobs within the office, plans the work schedule, leave schedule, and does most of the counseling in the office.
In the last 6 months, Lt Smith has ordered several people to work overtime to complete routine work ahead of schedule. Each time this has happened, the NCOIC has asked the lieutenant for permission to speak to her immediate supervisor. On each occasion, the lieutenant has told the senior master sergeant he must not take these internal problems to you, because she’ll take care of any problems in her section--and the NCOIC should remember who writes his EPR.
Most of the time, when Lt Smith approaches the work or break area where the workers are congregated, she notices all conversation stops and the personnel won’t talk to her unless she addresses them first. After reviewing a report yesterday, Lt Smith became very impatient. She bypassed his NCOIC and took the report directly to the Airman who had typed it. While Lt Smith was berating the Airman about the typing errors, the NCOIC walked into the office and asked the Airman what the problem was. The lieutenant became flustered, told the NCOIC she was tired of doing his job for him, and shoved the report into his hands. Lt Smith then went into her office and slammed the door.
The NCOIC relayed this situation to you and asked for your help. How will you help? BACKGROUND
*ENVIRONMENT: Airforce Base
*PEOPLE INVOLVE: The Captain, Lt Smith, Airman and NCOIC.
PROBLEM DEFINATION
*Lt Smith Unprofessional Behavior
DIAGNOSIS
*Marginal Performance
*Previous Experience
*Enthusiastic With her Job
*Academic Credibility
Answers
The lieutenant Smith has taken leave, and everything is running smoothly. People are, however, more attentive when she is present. Decisions are being delayed, and morale was low. The and other important supervisors are worried which some people may decide to due to her supervision, leave the service style.
Several issues must be addressed as a result of this case study. Lieutenant Smith's micromanagement technique is causing morale issues and may lead to retention issues, which is one of the main concerns. It's also troubling that she's requesting people to work extra hours without proper authorization or regard for the impact on their personal lives.
As her boss, you ought to tackle these concerns with Lt Smith and advise her on proper supervisory techniques. You could advise her to delegate more responsibilities to her NCOIC and other key supervisors, and to concentrate in strategic planning and decision-making instead of micromanaging every detail. We should also emphasise the significance of adhering to proper procedures for authorising overtime and taking into account the impact on personnel.
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Are marketing and sales the same in marketing
Answers
Answer:
marketing is building awareness of your organization and brand to potential customers. Sales is turning that viewership into a profit, by converting those potential customers into actual ones.
Explanation:
Studying products for similarities or differences is known as ______ shopping.
-Marginal
-Comparison
-Emotional
-Research
Answers
It's a form of research to look at products from different websites, but comparison means when you are comparing two things.
My answer would be B. Comparison
Studying products for similarities or differences is known as Comparison shopping. Option B. This is further explained below.
What is Comparison shopping.?Generally, Comparison shopping is simply a typical technique in which buyers check the prices of various things from several stores before making a purchasing choice.
In conclusion, Comparison shopping is the process of examining things for similarities and differences.
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Darwin is a 60-year-old software engineer for Compuswerve, Inc. Recently, the company went through a reorganization process meant to revamp the business and the work it does. The directors want to rework the company as a fresh, hip business with cutting-edge knowledge from young, creative-minded employees. Obviously, Darwin doesn’t fit into the directors’ vision, so the managers wish to replace him. Sure enough, a few weeks later Compuswerve hires some new employees, and Darwin is offered a severance plan and dismissed. Which of the following, if true, would legally support the company’s decision to fire and replace Darwin? Check all that apply. if the company had fewer than 20 employees if the company was a private (non-governmental) organization if Darwin was unable to perform the essential functions of his job if Darwin planned to retire in less than five years if Darwin had another job offer elsewhere if Darwin needed a reasonable accommodation to perform his job due to a disability if there were more highly skilled workers in the organization who could take his place
Answers
Answer:
pilin entonces pilinn
Alfred E. Old and Beulah A. Crane, each age 42, married on September 7,2017. Alfred and Beulah will file a joint return for 2019. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorce from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2019. In addition, in January 2019, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2019 is $150,000. He is an executive working for Cherry.Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society.Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives salary of $42,000 in 2019. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah had interest income of $500. They received $1,900 refund on their 2018 state income taxes. They claimed the standard deduction on their 2018 Federal income tax return. Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2019. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Alfred and Beulah have never owned or used any virtual currency, and they do not want to contribute to the Presidential Election Campaign. Compute the Old's net tax payable (or refund due) for 2019. Suggested software: ProConnect Tax Online
Answers
To compute the Olds' net tax payable (or refund due) for 2019, we need to gather all the relevant information and calculate their taxable income, apply the appropriate tax rates, deductions, and credits. Since the tax calculation involves various factors and tax laws, it would be best to use tax software such as ProConnect Tax Online or consult with a tax professional. The software will streamline the process and ensure accurate calculations based on the specific tax laws and regulations applicable to the Olds' situation.
a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $80,000 in cash along with equipment having a $40,000 value
b. On May 21, Elegant Lawns purchases office supplies on credit for $480.
c. On May 25, Elegant Lawns receives $8,800 cash for performing landscaping services
d. On May 30. Elegant Lawns receives $2,000 cash in advance of providing landscaping services to a customer
For each transaction, (1 analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts-account numbers parentheses: Cash (101); Accounts Receivable (106): Office Supplies (124): Trucks (153): Equipment (167), Accounts Payable (201 Unearned Landscaping Revenue (236) D. Tyler. Capital (301), D. Tyler, Withdrawals (302; Landscaping Revenue (403), Wages Expense (601), and Landscaping Expense (696)
Answers
Answer:
Elegant Lawns Company
1) Analysis of Transactions using the Accounting Equation:
Assets = Liabilities + Equity:
a) Assets (Cash $80,000) and (Equipment $40,000) increased = Liabilities + Equity ($120,000) increased.
b) Assets (Supplies $480) increased = Liabilities (Accounts Payable $480) increased + Equity
c) Assets (Cash $8,800) increased = Liabilities + Equity (Retained Earnings $8,800) increased
d) Assets (CVash $2,000) increased = Liabilities (Deferred Revenue $2,000) increased + Equity
2) Journal Entries:
Debit Credit
a) Cash $80,000
Equipment $40,000
Equity $120,000
To record equity in cash and equipment
b) Office Supplies $480
Accounts Payable $480
To record purchase of office supplies on credit
c) Cash $8,800
Revenue $8,800
To record cash receipts from customers
d) Cash $2,000
Deferred Revenue $2,000
To record cash receipt in advance for services to a customer
3) T-Accounts Ledger:
Cash Account
Debit ($) Credit ($)
a) Equity 80,000 Balance c/d 90,800
c) Revenue 8,800
d) Deferred Revenue 2,000 00000
90,800 90,800
Balance b/d 90,800
Equipment Account
Debit ($) Credit ($)
a) Equity 40,000
Equity Account
Debit ($) Credit ($)
Balance c/d 120,000 a) Cash 80,000
000000 a) Equipment 40,000
120,000 120,000
Balance b/d 120,000
Office Supplies Account
Debit ($) Credit ($)
b) Accounts Payable 480
Accounts Payable Account
Debit ($) Credit ($)
b) Office Supplies 480
Revenue Account
Debit ($) Credit ($)
c) Cash 8,800
Deferred Revenue Account
Debit ($) Credit ($)
d) Cash 2,000
Explanation:
a) The accounting equation states that Assets are equal to Liabilities plus Equity for every given business transaction. Each transaction affects either the two sides of the equation equally or increases and decreases one side only. This equation means that the two sides must be in balance given any transaction. For example, the purchase of goods on credit will increase Inventory and increase Liabilities by the same amount.
b) Journal Entries are used to initially record or recognize business transactions. The entries show which accounts will be debited and which will be credited in the Ledger.
c) T-Accounts is accounting tool which shows the ledger account to be debited and credited and to balance the account at the end of a period. It is from the ledger that a trial balance is extracted before adjustments are made for the preparation of financial statements.
In the process of conversion from the equity method to the fair value method, the earnings or losses that the investor previously recognized under the equity method should
Answers
Answer: remain as a part of the carrying amount of the investment
Explanation:
Equity method is simply the process whereby investments are treated in associate companies. It usually occurs when the investor entity holds about twenty to fifty percent of the voting stock of the other company.
It should be noted that in a process of conversion from the equity method to the fair value method, the earnings or losses that the investor previously recognized under the equity method should remain as a part of the carrying amount of the investment.
1 - At the Montell Company, functions are divided into areas of specialization such as production, marketing, accounting, and finance. This type of organization reflects Fayol's principle of: A. division of labour. B. equity. C. unity of command. D. hierarchy of authority. to describe middle managers whose job was to implement the 2 - Max Weber used the term orders of top management: A. management B. autocrats C. staff personnel D. bureaucrats
Answers
At the Montell Company, since the functions are divided into areas of specialization such as production, marketing, accounting, and finance, it reflects Fayol's principle of division of labor.
Max Weber used the term bureaucrats to describe middle managers. Their job is usually to implement the orders that they get from top management.
It should be noted that division of labor is when the roles that'll be performed in an organization are divided into various departments. This is done in order to make the job easier and faster.
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