Answer: cash account in the balance sheet.
Explanation:
A bank reconciliation reconciles the bank statement with the company's cash account in the balance sheet. Option C is the correct answer.
A bank reconciliation is a process that compares the company's cash records, specifically the cash account in the balance sheet, with the bank statement. It is performed to ensure that the company's recorded cash transactions match the bank's recorded transactions. Option C is the correct answer.
During a bank reconciliation, various items are compared, such as deposits in transit, outstanding checks, bank fees, and interest earned. The purpose is to identify any discrepancies or differences between the company's records and the bank's records. By reconciling the cash account in the balance sheet, the company can identify any errors or missing transactions, and make adjustments accordingly.
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The complete question is, " A bank reconciliation reconciles the bank statement with the company's
a. net cash flow in the statement of cash flows.
b. net income in the income statement.
c. cash account in the balance sheet.
d. cash from operating activities."
You are given the following facts about a 40% owner of an S corporation, and you are asked to prepare her ending stock basis.
Owner's beginning stock basis $36,800
Increase in AAA 32,000
Increase in OAA 6,300
Payroll tax penalty 2,140
Tax-exempt interest income 4,800
Life insurance premiums paid (nondeductible) 2,700
Owner's purchases of additional stock 22,000
Answer:
$74,120
Explanation:
Preparation of her ending stock basis
ENDING STOCK BASIS:
Beginning stock basis $36,800
Add:Increase in AAA $12,800
(.40 * $32,000)
Add:Increase in OAA $2,520
(.40 * $6,300)
Add:Stock purchase $22,000
Total Ending stock basis $74,120
Therefore her ending stock basis is $74,120
Assume the supply function of ice cream is written as: Qs = 100 + 20P - 5Pm, where Qs is the quantity supplied, P is the price of ice cream, and Pm is the price of milk ($/gallon). When the milk price is $10, the quantity supplied is 100. Suppose milk price decreased by 20% due to the policy change, how will the Qs change?
Answer:
The Qs will increase by 460 units which also represents a 460% increase in Qs.
Explanation:
Step 1: Calculation of price of ice cream, P, when price is $10 and the quantity supplied is 100.
Given:
Qs = 100 + 20P - 5Pm ……………….. (1)
Where:
Qs = 100
P = ?
Pm = $10, or 10
Substituting the values into equation (1) and solve for P, we have:
100 = 100 + 20P - (5 * 10)
100 = 100 + 20P - 50
100 - 100 + 50 = 20P
50 = 20P
P = 50 / 2 = 2.50
Step 2: Calculation of new Qs, Qs1, when milk price, Pm, decreased by 20%.
This implies that we have:
Qs1 = ?
P = 2.50
Pm = $10 * (100% - Percentage decrease in Pm) = $10 * (100% - 20%) = $8, or 8
Substituting the values into equation (1) in Step 1 above and Qs1 for Qs to calculate Qs1, we have:
Qs1 = 100 + (20 * 2.50) - (5 * 8)
Qs1 = 100 + 50 - 40
Qs1 = 110
Step 3: Calculation of change in the Qs when milk price, Pm, decreased by 20%.
Change in Qs expressed in unit = Qs1 - Qs = 110 - 100 = 10
Change in Qs expressed in percentage = ((Qs1 - Qs) / Qs) * 100 = ((110 - 100) / 100) * 100 = 10%
Therefore, the Qs will increase by 10 units which also represents a 10% increase in Qs.
Tia and Sam are partners who solely own T and S Florist. As owners, they can:______.
a. claim the organization as their legal property.
b. can't sell the company.
c. claim only limited liability.
d. avoid taking any legal responsibility for T and S.
e. decide not to pay a dividend to their stockholders.
Answer:
A
Explanation:
A high Power Distance Index score implies that the people who hold power in a country are entitled to privileges.
a. True
b. False
Answer:
a. True
Explanation:
The Power-Distance Index refers to the relationship and interaction between a high ranking individual and a low ranking individual. The index depends on how a low ranking individual reacts to a high ranking individual.
It measures the degree where the members of a society or group accepts the hierarchy of the power and the authority.
Thus according to the high power distance index score, individuals with high power are entitled to number of privileges in a country or in society.
Hence the answer is TRUE.
Each of the following would be a period cost except: Group of answer choices the salary of the company president's secretary. the cost of a general accounting office. depreciation of a machine used in manufacturing. sales commissions.
Answer:
depreciation of a machine used in manufacturing.
Explanation:
A periodic system of inventory can be defined as a method of financial accounting, that typically involves updating informations about an inventory on a periodic basis (at specific intervals) as the sales or purchases are being made by the customers, through the use of either an enterprise management software applications or a digitized point-of-sale equipment.
Periodic cost are costs that occur or arise on a periodic basis such as quarterly.
Each of the above mentioned costs would be a period cost except depreciation of a machine used in manufacturing.
When the economy is in a recession, expansionary fiscal policy can be used to stimulate and encourage economic growth. Which of the following scenarios represent expansionary fiscal policies from both a supply and demand perspective at the same time? When choosing the answer, please look if it meets three description, expansionary, fiscal policies, and involving both the supply side and the demand side. (There could be more than one answer).
A. The government lowers tax rates and undertakes a replacement of old bridges and roads.
B.The government lowers tax rates and issues a partial refund of taxes that have already been paid.
C. The government raises tax rates and reduces unemployment insurance payments.
D. The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes.
Answer:
A
Explanation:
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
If taxes are cut, disposable income increases and demand increases. this is an example of demand side
On the other hand, if a replacement project is undertaken, the demand for labour increases. this is an example of supply side
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
The trial balance of Beautiful Tots Child Care does not balance.
BEAUTIFUL TOTS CHILD CARE
Trial Balance August 31, 2018
Balance
Account Title Debit Credit
Cash 7,900
Accounts Receivable 6,700
Office Supplies 1,000
Prepaid Insurance 300
Equipment 91,500
Accounts Payable 3,400
Notes Payable 45,000
Common stock 57,000
Dividends 5000
Service Revenue 12,350
Salaries Expense 4,400
Rent Expense 750
Total 117,550 S117,750
The following errors are detected:
a. Cash is understated by $1,500.
b. A $4,100 debit to Accounts Receivable was posted as a credit.
c. A $1,400 purchase of office supplies on account was neither journalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $91,500. It should have been transferred as $83,000.
e. Salaries Expense is overstated by $700.
f. A $300 cash payment for advertising expense was neither journalized nor posted.
g. A $200 cash dividend was incorrectly journalized as $2,000.
h. Service Revenue was understated by $4,100.
i. A 12-month insurance policy was posted as a $1,900 credit to Prepaid Insurance.
Cash was posted correctly.
Prepare the corrected trial balance as of August 31, 2018. Journal entries are not required.
Answer:
Corrected Trial Balance
Particulars Debit Credit
Cash $10,900
Account receivable $14900 (6700+8200)
Office supplies $2400 (1000+1400)
Prepaid insurance $4100 (300+3800)
Equipment $83000
Account payable $4800 (3400+1400)
Notes payable $45000
Trumball common stock $57000
Trumball dividend $3200 (5000+200-2000)
Service revenue $16450 (12350+4100)
Salaries expense $3700 (4400-700)
Rent expense $750
Advertising expense $300
Total $123,250 $123,250
What will happen when the country's
currency is undervalued?
Answer:
Ur answer is that When the U.S. dollar is undervalued, the cost of a basket of goods in the United States is lower than the cost in Mexico when evaluated at the current exchange rate. To a U.S. tourist, Mexican goods and services would seem more expensive on average. Thus an undervalued currency will buy less in other countries.
Explanation:
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Mambo Inc. has credit sales of $140,000 in May, $170,000 in June, and $190,000 in July. Mambo collects cash on account 70% in the month of sale and 30% in the month following the sale. What would the cash collections be for June
Answer: $161,000
Explanation:
Mambo collects cash on account 70% in the month of sale and 30% in the month following the sale.
This means that in June, Mambo will collect 70% of the June credit sales in addition to 30% of May's sales.
June's collections are therefore:
= (70% * June sales) + (30% * May sales)
= (170,000 * 70%) + (140,000 * 30%)
= 119,000 + 42,000
= $161,000
XYZ has two divisions: South and West. Overall net operating income is $26,900. South Division's segment margin is $42,800 and West Division's segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions
Answer:
$45,800
Explanation:
Common fixed expense = South Division's segment margin + West Division's segment margin - Overall net operating income
= $42,800 + $29,900 - $26,900 = $45,800
= $45,800
The amount of the common fixed expense not traceable to the individual divisions is $45,800.
A company has the following selected account balances: Sales $ 250,000 Sales Discounts 1,500 Sales Returns and Allowances 2,300 Sales Salaries Expense 56,000 Store Supplies Expense 15,000 Advertising Expense 8,000 Cost of Goods Sold 125,000 What is the gross profit that would appear on a multiple-step income statement: multiple choice $121,200 $167,200 $42,200 $246,200
Answer:
$121,200
Explanation:
Calculation to determine the gross profit that would appear on a multiple-step income statement
First step is to determine the Net sales
Sales $ 250,000
Less Sales Discounts ($1,500)
Less Sales Returns and Allowances ($2,300 )
Net sales $246,200
Now let determine the Gross profit using this formula
Gross profit=Net sales-Cost of Goods Sold
Let plug in the formula
Gross profit=$246,200-$125,000
Gross profit=$121,200
Therefore the gross profit that would appear on a multiple-step income statement is $121,200
Four fundamental factors affect the cost of money: (1) the return that borrowers expect to earn on their investments, (2) the preference of savers to spend their income in the current period rather than delay their consumption until some future period, (3) the risks associated with the investment, and (4) expected inflation. Consider the following statements that address these factors, and indicate which you think are true.
Statement 1: The onset of 5% inflation means that your receipt of a $100 interest payment allows you to purchase only $95 worth of goods and services.
Statement 2: For the average rational investor or saver, there is an indirect, or inverse, relationship between the amount of risk exhibited by a security and the risk premium that would be required by the investor or saver.
Statement 3: On average and everything else held constant, rational savers and investors prefer to invest $1,500 to acquire an asset that will pay annual cash flows of $300 per year rather than an otherwise identical asset that will pay $500 per year.
Statement 4: The actual relationship between the risk-free rate of return (r*) and the expected future inflation rate or inflation premium (IP) is actually multiplicative-that is, [(1 + rRF) x (1 + IP)]-1-but it is often simplified to reflect an additive relationship.
The true statements are:
a. 2 and 3
b. 2 and 4
c. 1 and 4
d. 1 and 3
Answer:
The true statements are:
c. 1 and 4
Explanation:
The actual interest rate paid to savers depends on
(1) the expected rate of return on invested capital
(2) time preferences for current consumption versus future consumption
(3) the riskiness of the loan
(4) the expected future inflation rate
We can conclude that if an investment is facing a higher risk and inflation rate, then the expected interest rate will be higher than for a low-risk, low inflation-facing investment.
In the equation below assume U and A are know.
Rearrange the equation so that you would solve for R in terms of the Greek letter sigma)
U = R − 1 2 A σ 2
A. R = U − 1 2 A σ 2
B. R = 1 2 A σ 2 U
C. R = U 1 2 A σ 2
Answer:
[tex]R = U + {1}{2}A\sigma^2[/tex]
Explanation:
Given
[tex]U = R - \frac{1}{2}A\sigma^2[/tex]
Required
Solve for R
We have:
[tex]U = R - {1}{2}A\sigma^2[/tex]
Add [tex]{1}{2}A\sigma^2[/tex] to both sides
[tex]U + {1}{2}A\sigma^2 = R - {1}{2}A\sigma^2 + {1}{2}A\sigma^2[/tex]
Evaluate like terms
[tex]U + {1}{2}A\sigma^2 = R[/tex]
Hence:
[tex]R = U + {1}{2}A\sigma^2[/tex]
Unobserved effects versus idiosyncratic errors
Suppose you have two years' worth of panel data on wages and work experience of adults; however, the data set has no further information on the characteristics of the individuals in the data set. Specifically, you have cross-sectional wage and work experience data on individuals in 2006, and cross-sectional data on those same individuals in 2012. You plan to use the following fixed effects model to analyze the effects of work experience on wages:
log (wage it ) = βo + 80 yr10, + B1 experit + ai + uit
where
wage it = yearly wage of individual i at time t, in dollars
yrl0, =1 in the year 2010 (t = 2), and =0 otherwise (t = 1)
exper = years of work experience of individual i, at time t
ai = unobserved (time-invariant) effect
uit = idiosyncratic error
Two other factors that can influence wage, which you have not controlled for in your model, are height and industry of employment.
Use the following table to indicate which term in the fixed effects model captures the effect of height, which term captures the effect of industry of employment, and which term captures the effect of work experience.
ai uit β1
Work experience
Height
Industry of employment
Answer:
The terms that capture the effect of industry of employment and work experience are:
Industry of employment = uit
Work experience = β1
Height = ai
Explanation:
a) Data:
ai uit β1
Work experience
Height
Industry of employment
b) Explanation
The "idiosyncratic error" (uit) describes the unobserved factors that impact the dependent variable. For example, industry of employment, and this factor vary from one-time period to the next.
The unobserved (time-invariant) effect (ai) refers to the height of the industry of employment, which does not vary over time.
Finally, work experience is depicted by β1, which is a factor that changes with time.
What is the expected constant growth rate of dividends for a stock currently priced at Php 50, that is expected to pay a dividend of Php 5 next year, and has a required return of 20%?
Answer: 10%
Explanation:
Using the Gordon Growth Model, the price of a stock can be calculated as follows:
Price = Next dividend / (Required return - growth rate)
Notice that we are provided with all the figures in the formula above except the growth rate so we can calculate the growth rate with these figures:
50 = 5 / (20% - growth rate)
50 * (20% - growth rate) = 5
20% - growth rate = 5 / 50
-growth rate = 10% - 20%
-Growth rate / -1 = -10% / -1
Growth rate = 10%
company name ends with NPC
Use the information provided in the journal entry to post the transaction to the t-account. Post in DR/CR order.
Date Accounts and Explanation Debit Credit
Nov. 1 Cash 45,000
Common Stock 45,000
Received cash from selling shares of stock
Date Accounts and Explanation Debit Credit
Nov. 4 Truck 21,200
Notes Payable 21,200
Bought a compary truck by signing
Date Accounts and Explanation Debit Credit
Nov. 8 Salaries Expense 14,500
Cash 14,500
Paid cash for salaries ,500
Date Accounts and Explanation Debit Credit
Nov. 12 Office Supplies 9,200
Accounts Payable 9,200
Purchased office supplies on account
Date Accounts and Explanation Debit Credit
Nov. 13 Cash 7,500
Unearned Revenue 7,500
Collected cash for future services
Date Accounts and Explanation Debit Credit
Nov. 12 Office Supplies 9,200
Accounts Payable 9,200
Purchased office supplies on account
Date Accounts and Explanation Debit Credit
Nov. 13 Cash 7,500
Unearned Revenue 7,500
Collected cash for future services
Answer:
Following are the journal entry to the given question:
Explanation:
Cash
[tex]1-Nov. \ \ \ \ \ \ \ \ \ \$45,000\\\\[/tex]
Common stock
[tex]\$45,000\ \ \ \ \ \ \ \ \ 1-Nov.[/tex]
Truck
[tex]4- Nov. \ \ \ \ \ \ \ \ \ \$21,200\\\\[/tex]
Notes payable
[tex]4- Nov. \ \ \ \ \ \ \ \ \ \$21,200\\\\[/tex]
Salaries expense
[tex]8-Nov. \ \ \ \ \ \ \ \ \ \$14,500\\\\[/tex]
Cash
[tex]8- Nov. \ \ \ \ \ \ \ \ \ \$14,500\\\\[/tex]
Office supplies
[tex]12-Nov. \ \ \ \ \ \ \ \ \ \$9,200\\\\[/tex]
Accounts payable
[tex]12- Nov. \ \ \ \ \ \ \ \ \ \$9,200\\\\[/tex]
Cash
[tex]13- Nov. \ \ \ \ \ \ \ \ \ \ \ \ \$7,500\\\\[/tex]
Unearned revenue
[tex]13- Nov \ \ \ \ \ \ \ \ \ \$7,500[/tex]
You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of .5 percent per year, compounded monthly for the first six months, increasing thereafter to 17.3 percent compounded monthly. Assume you transfer the $6,300 balance from your existing credit card and make no subsequent payments. How much interest will you owe at the end of the first year
Answer:
$738.39
Explanation:
Interest is compounded for first 6 months
Amount at the end of 6 months = $6,300 * (1+0.05/12)^6
Amount at the end of 6 months = $6,300 * 1.025262
Amount at the end of 6 months = $6,459.15
Therefore, 17.3%
Amount at the end of 12 months = $6,459.15*(1+0.173/12)^6
Amount at the end of 12 months = $6,459.15*1.0896782
Amount at the end of 12 months = $7,038.39
Interest owed = Amount owed - Principal
Interest owed = $7,038.39 - $6,300
Interest owed = $738.39
Correct the single error in each of the following sentence. A week later, you browses through the trend reports
Answer:
A week later, you browse through the trend reports.
Students submitting initial CPT applications should allow at least ____ business days for their CPT application to be reviewed. one (1) five (5) ten (10) thirty (30)
Answer:
The answer is "thirty (30)".
Explanation:
Students applying for initial CPT must allow their CPT application to also be examined for at least 30 working days.
It's Curricular Practical Training (CPT) is an outside study/stage probably understand to the subject. The student that is still learning in a certain program always is open to it.
Indeed, during the first semester, undergraduates could qualify for CPT because it is indeed a significant part of a graduate degree.
The review of all applications takes about 30 business days.
Current information for the Healey Company follows : Beginning raw materials inventory Raw material purchases Ending raw materials inventory Beginning work in process inventory Ending work in process inventory Direct labor Total factory overhead $ 15,700 60,500 17,100 22,900 28,500 43,30030,500 All raw materials used were traceable to specific units of product . Healey Company's direct materials used for the year is :
Answer:
$59,100
Explanation:
Given the above information, the computation of direct materials used is seen below.
Direct materials used = Beginning raw materials inventory + Purchase of raw material - Ending raw material inventory
= $15,700 + $60,500 - $17,100
= $59,100
Therefore, Healey company's direct materials used for the year $59,100
5. What is the purpose of a Job Cost Sheet? What type of information is included in one?
Answer:
The purpose of a job cost sheet is to record the various costs that went into the manufacturing of a product or the provision of a service. This will enable the company know how much the process cost so that the company can understand the cost of the product better and make informed decisions based on this.
The information generally included in a job cost sheet include:
Direct labor hours Direct materials used and their costMaterial requisition number Manufacturing overhead rate and the basis (eg labor hours or machine hours).Total cost of production.Criticize different types of selection and supply categories
Answer:
Following are the responses to the given question:
Explanation:
This item type of provision requires that the learner organizes information. The students need to take proper or more options in certain test items. Every item has a single correct answer. Every student needs to learn the very same thing and depend on the red recall of facts. It requires the very same thing.
The decision is based on the basic qualifications for the job. Every supply pool is examined and categorized according to the requirements. The pool of talent is evaluated to obtain the best match. If the biggest game between the selected pool isn't available, the recruiter might consider relaxing certain requirements in the plan to enlarge the pool.
Suppose the stock of Host Hotels & Resorts is currently trading for per share. a. If Host issued a stock dividend, what would its new share price be? b. If Host does a 3:2 stock split, what would its new share price be?
Answer:
A. $16.67 per share
B. $13.33 per share
C. $60.00 per share
Explanation:
a. Calculation to determine what will its new share price be If Host issued a 20% stock dividend
Using this formula
New share price (stock dividend) = Old price / (1 + Stock dividend rate)
Let plug in the formula
New share price (stock dividend) =$20/(1+0.20)
New share price (stock dividend) =$20/1.20
New share price(stock dividend) =$16.67 per share
Therefore If Host issued a stock dividend, its new share price will be $16.67 per share
b. Calculation to determine what will its new share price be If Host does a 3:2 stock split
Using this formula
New share price=Old price/Stock split
Let plug in the formula
New share price=$20/(3/2)
New share price=$20/1.5
New share price= $13.33 per share
Therefore If Host does a 3:2 stock split its new share price will be $13.33 per share
c. Calculation to determine what will its new share price be If Host does a 1:3 reverse split
Using this formula
New share price=Old price/Reverse split
Let plug in the formula
New share price=$20/(1/3)
New share price=$20/0.33333
New share price= $60.00 per share
Therefore If Host does a 1:3 reverse split its new share price will be $60.00 per share
Assume that per capita income is growing at different rates in the following countries: Nepal, 0.7 percent; Kenya, 1.3 percent; Singapore, 6.9 percent; Egypt, 3.8 percent. How long will it take for each country to double its income per person
Answer:
100 years
53.8 years
10.1 years
18.4 years
Explanation:
country to double given its growth rate
Number of year for GDP to double = 70 / growth rate of country
1. 70 / 0.7 = 100
2. 70 / 1.3 = 53.8
3. 70 / 6.9 = 10.1
4. 70 / 3.8 = 18.4
if the inventory turnover ratio cast co is 5x and its gross profits and sales are $270 million and $1,200 million respectivelly then the inventory account for cast is
a.$180 million
b.$182 million
c.$186 million
d.$196 million
Answer:
c.$186 million
Explanation:
Calculation to determine what the inventory account for cast is
Using this formula
Inventory account for cast =Sales - Gross profit/Inventory turnover ratio cast
Where,
Sales=$1,200 million
Gross profit=$270 million
Inventory turnover ratio cast =5x
Let x be the inventory account for cast
Let plug in the formula
5x=$1,200 million-$270 million
5x=$930 million
x=$930 million/5
x=$186 million
Therefore the inventory account for cast is $186 million
Open communication occurs best when:
a. people feel their opinions are valued.
b. people feel they will be rewarded, or at least not punished, for their opinions.
c. both a and b
d. neither a nor b
What type of plan does a property manager implement to manage renters who do NOT pay their rent in a timely way
Answer:
collection plan
Explanation:
The rent collection plan is a system that is used for the enforcement of rent, in terms of late rent payment as well as lease terms. This is more than just telling the tenant when the rent is due. It has all of the information on all the ways that rent could be paid and also the repercussions for late rent payment or a situation whereby the rent is not even paid at all.
On January 1, Year 1, Michael sold a property with a remaining useful life of 20 years to Wei Co. for $800,000. On the same date, Michael leased back the property from Wei for 18 years. The lease was properly classified by Michael as a finance lease. Michael is not sure how to recognize the $800,000 received from Wei Co. on January 1, Year 1.
Required:
Which section of the Accounting Standards Codification best helps Michael Co. determine how the initial proceeds of $800,000 received from Wei Co. (buyer-lessor) are recognized?
Answer:
The section of the Accounting Standards Codification that best helps Michael Co. to determine how the initial proceeds of $800,000 received from Wei Co. (buyer-lessor) are recognized is:
ASC 606.
Explanation:
This section that will help Michael Co. to determine if the transaction qualifies as a sale, which is treated under ASC 606, Revenues from Contracts with Customers. Thereafter, the lease classification criteria in ASC 842 are evaluated. After the evaluation, if none of the criteria from ASC 842 are met to account for the lease as a finance or capital lease, the seller-lessee would classify the lease as an operating lease. This implies that the transaction qualifies as a sale and leaseback transaction.
The annual demand of product Z is 3400 units. The shop that sells product Z is open for business 40 weeks per year and 4 days per week. The lead time for product Z is 4 days. Assuming constant demand, calculate the reorder point. Hint: first calculate the total number of days the shop is open for business per year before calculating the reorder point. [Select the appropriate range in which your answer falls.]
Answer:
85 units
Explanation:
Annual demand = 3,400 units
Using 40 weeks per year & 4 days per week, the no of days per year = 160 days (40*4)
Average daily demand (d) = Annual demand / Number of days per year
Average daily demand (d) = 3400/160
Average daily demand (d) = 21.25 units
Lead time (L) = 4 days
Reorder point = Average daily demand (d) * Lead time (L)
Reorder point = 21.25 * 4
Reorder point = 85 units