goods that are produced today in order to make other valuable goods and services in the future are called

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Answer 1

Capital goods are produced today to be used in the production of future valuable goods and services. Hence, Option D is correct.

In order to produce consumer or other capital goods, businesses utilise capital goods, which are manufactured items. Products that people utilise are called consumer goods.

Tools, equipment, and structures are examples of capital goods. Food, home furnishings, apparel, and automobiles are a few examples of consumer goods.

It is common to use the words capital goods and consumer goods to categorise different types of goods. Any product that is used in production is a capital good.

Consumer goods are products that are used by consumers and have little potential for future productivity. Depending on how it is used, a particular physical good could be either a consumer good or a capital good.

Therefore, Option D is correct.

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The complete question has been attached in text form:

Goods that are produced today in order to make other valuable goods and services in the future are called

a. normal goods.

b. inferior goods.

c. consumer goods.

d. capital goods.

e. personal goods.


Related Questions

discuss the difference between shareholder and stakeholder theories of business, with reference to issues concerning the environment. g

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In a corporation, shareholders are always stakeholders, but not necessarily stakeholders are shareholders.

What is a stakeholder?

An entity that has an interest in the success of a project and business venture is referred to as a stakeholder. Stakeholders, who may be inside or outside the organisation supporting the project, have a vested interest in the project's success.

What function does a stakeholder serve?

By offering their expertise and viewpoint to a project, stakeholders primarily assist organizations in achieving their strategic goals. They might offer the tools and resources needed as well. An undertaking's success depends on their backing.

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Who is mr. wolfshiem? question 4 options: he is the owner of gatsby's favorite restaurant in new york. he secretly arranged to have a member of the mob murdered outside the restaurant. he is jordan baker's coach and manager. he thinks jordan is spending too much time with nick and not enough on her golf. he is a racketeer and a business associate of gatsby's. he fixed the 1919 world series. he is the president of the company where nick is working. he wants to bring gatsby in on a new real estate deal.

Answers

Mr. Wolfshiem is secretly arranged to have a member of the mob murdered outside the restaurant. Therefore, option B is correct.

Who is Mr. Wolfshiem ?

Wolfsheim is a dubious individual, having connections to the underworld of commerce. He gives Nick the sense that Gatsby's money may have an unsavory origin, and that Gatsby may even be connected to the same type of organized crime that Wolfsheim is.

Wolfsheim informs Nick that Gatsby is a "Oggsford" man and a "Oggsford gentleman" who is "extremely careful with women" while Gatsby is absent from the table. Gatsby is the "sort of man you'd like to take home and introduce to your mother and sister," according to Wolfsheim.

Thus, option B is correct.

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suppose that a popular new video game comes out. some men enjoy playing this game so much, they decide to leave work to play full time. what would the effect of this video game be on the unemployment rate

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Suppose that a popular new video game comes out they decide to leave work to play full-time.

A video game (also known as a computer game) is an electronic game in which you interact with a user interface or input device (such as a joystick, controller, keyboard, or motion sensor) to generate visual feedback.

Studies show that playing video games regularly increases gray matter in the brain and improves brain connectivity. (Gray matter is associated with muscle control, memory, perception, and spatial navigation.)

Video games (also called computer games) are electronic games that can be played using input devices such as controllers. is. keyboard or joystick. Video games can be used for entertainment and relaxation, competition and computer learning.

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target entered fiscal 2019 with a total capitalization of $21,520 million. in 2019, debt investors received interest income of $477 million. net income to shareholders was $3,281 million. (assume a tax rate of 21%.) calculate the economic value added assuming its cost of capital is 10%.

Answers

The economic value added assuming the cost of capital of Target entering fiscal 2019 will be $1505.83 million.

Economic value added is referred to as the overall value that a organization adds to its overall revenue when it enters the new year as compared to the previous year. The formula for calculating the economic value added is expressed as

EVA = after-tax interest + net income - (cost of capital × total capitalization)

After tax interest = (1 - tax rate)×interest income

After tax interest = (1 - 0.21)×$477 million = $376.83 million

Now the expected value added is calculated as

EVA = $376.83 million + $3281 million - ($21520×0.10)

EVA = $3657.83 million - ($2152 million)

EVA = $1505.83 million

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the federal reserve frequently uses to implement monetary policy. a.government spending b.the reserve requirement ratio c.federal tax policy d.open market operations e.the discount rate

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The federal reserve frequently uses to implement monetary policy federal tax policy.

The United States has federal, state, and local governments, each of which imposes taxes. Taxes are levied on income, salaries, property, sales, capital gains, dividends, imports, real estate and gifts, and miscellaneous expenses.

Taxes are imposed on individuals and businesses by the city, state, or country in which they live or do business. When the collected tax is credited to the government of the country, it is called federal tax. The government uses money collected from federal taxes to fund the growth and maintenance of the country.

The three main sources of federal tax revenue are personal income tax, payroll tax, and corporate income tax. Other sources of tax revenue include excise duty, inheritance tax and other taxes and fees.

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what are two reasons why it's imporant to share your hootsuite analytics data with other members of your team

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By the way of sharing a file with a fellow team member, they will get non-stop access to the statistics they need most. And in contrast to conventional reporting, recipients can entry to the information they want maximum.

And unlike traditional reporting, recipients can regulate the parameters of the shared document to exceptional-song the insights they're getting. Hootsuite Analytics solves this with superior collaboration and sharing alternatives. It is more beneficial to interact with your audience through the use of Hootsuite, in preference to attract natively from specific social money owed extra correctly than social networks' local AI functionality.  It lets you peer the contents of private profiles, presenting thorough and correct client insights.

The feature Hootsuite additionally has a useful Analytics feature for in-depth social media overall performance reporting. if you run an organization, you understand that reporting the ROI of social media may be complicated. Hootsuite's Analytics= feature allows you to show off your deliverables.

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In many cases, lenders allow homeowners to include their homeowners insurance premium with their monthly mortgage payment. tim’s home is worth $279,500. if his homeowners insurance premium is $0.33 per $100, how much is added to his monthly mortgage payment for insurance?

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As per the insurance premium, the monthly mortgage payment for insurance is B. $76.86.

Insurance:

In accounting, insurance refers the contract (policy) in which an insurer indemnifies another against losses from specific contingencies and/or perils.

Given,

In many cases, lenders allow homeowners to include their homeowners insurance premium with their monthly mortgage payment. Tim's home is worth $279,500.

Here we need to find if his homeowners insurance premium is $0.33 per $100, then how much is added to his monthly mortgage payment for insurance.

While we looking into the given question, we have identified that Tim’s home is worth $279,500.

And the insurance premium is $0.33 per $100

Then the amount for a month premium will be calculated as,

=> $0.33/13

=> $0.0275

So, the premium for $279500 will be calculated as,

=>  0.0275/100 × 279500

=> $76.86

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true or false?many developed nations have been able to achieve universal access through a single payer system

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So, the statement is False , As evidenced by Canada, Denmark, Norway, Australia, Taiwan, and Sweden (1), single-payer national health insurance systems are publicly run, yet the majority of doctors work in private practices.

If it were available to everyone in the United States, U.S. Medicare would be a single payer insurance system.

People have more control over their healthcare under a single-payer system because they may select their providers based on approach or reputation. Cons:

Because doctors and medical institutions may negotiate their contracts, a single-payer system may be more expensive.

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f the government uses fiscal policy to reduce the budget deficit during a recession, the government will make the recession worse, ceteris paribus. question 6 options: true false

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During a recession, if the government undertakes fiscal policy to lower the budget deficit, the economy will become worse. This assertion is true.

In order to increase demand and the economy during a recession, the government may lower tax rates or increase spending. On the other side, it can slow the economy in order to fight inflation by raising rates or reducing expenditure.

Expansionary fiscal policy is ideal when an economy is in a recession and generates less than its potential GDP. Fiscal policies that are in a contractionary mode reduce the level of aggregate demand through cuts to public spending or tax hikes.

Taxes and government expenditures are the primary tools of fiscal policy. if the economy is in a recession.

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when a monopoly is producing profit-maximizing quantity, what is the relationship between marginal cost and price?

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The marginal revenue curve is always below the demand curve. To sell one more unit, the firm must lower the price for all goods. Thus, the marginal revenue < price. he monopoly will set the profit-maximizing quantity where marginal revenue equals marginal cost.

Profit maximization in economics refers to the short- or long-term process by which a firm chooses the prices, input levels, and output levels that will result in the largest feasible total profit (or just profit in short).

Neoclassical economics, the current dominant approach to microeconomics, makes the assumption that the firm is a "rational agent" that seeks to maximize its total profit, which is the difference between its total revenue and its total cost (whether it is operating in a perfectly competitive market or not).

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the total variable factory overhead cost variance for a period can be broken down into what two variances?

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The total variable factory overhead cost variance for a period can be broken down into what two variances-Variable Overhead Spending Variance and Variable Overhead Efficiency Variance.

Variable Factory Overhead Cost Variance is the distinction between actual variable overhead and standard variable overhead.

The Variable Cost Variance Also Has Two Parts, Which Are as Follows: -

1. Variable Factory Overhead Expenditure/Spending Variance:

The variance is the difference between the actual rate of variable overhead and the average rate of variable overhead.

2. Variable Factory Overhead Efficiency Variance

This Variance is the difference between the Actual hours worked and the Standard hours required for the Actual Volume of Work.

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According to the video, which qualities do insurance underwriters need? select three options. communication skills customer service skills computer skills knowledge of sales strategies an outgoing attitude a background in finance

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According to the video, the qualities the insurance underwriters need are:

A communication skills C computer skills, F a background in finance

What are communication skills ?

Communication skills  can be described asd the skills that entails the activities such as listening, speaking, observing and empathising.

It should be noted that this also helpful to understand the differences in how to communicate through face-to-face interactions as well as the conversations and digital communications like email and social medi, however the computer skills are also very important to operate the computer sytem.

Therefore, option A ,C F are correct.

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your total restaurant bill for food and drinks is $38.28. what is a good estimated cost for just the food and drinks?

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A good estimated cost for just the food and drinks will be $34.00. Typically, people offer what is most convenient.

You'll spend the same amount as if you were to take your chosen guests out to a nice meal. That is the amount. One way to look at it is that you are practically setting up your own pop-up restaurant for ONE NIGHT by booking the time of a full service staff. When operating costs are taken into account (we'll discuss that later), purchasing food in bulk doesn't always equate to a lower cost than dining out. Let's start by dividing this up by person.

Well, there is no set minimum. Typically, people offer what is most convenient. I cheerfully accept anything the consumer gives me when I'm working the counter. It might be. 50 cents, 20 dollars, but just one or two dollars.

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how can someone give the gift of life insurance to someone else? what are the benefits of gifting it?

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You have the authority to designate another person as the holder & beneficiaries of your coverage. The homeowner will get the entire payoff when you pass away.

Describe coverage.

Insurance coverage is the degree of risk or risk that is shielded against for an individual or a business through the usage of insurance services. The three most common types of insurance cover are auto, life, and homeowner's.

What is protected by coverage?

Its objective is to mitigate inadvertent loss and reduce financial uncertainty. This is done by exchanging the acceptance of the possibility of a major loss and the promise to pay in the event of one for the payment of a small, known fee known as an insurance premium to a skilled insurer.

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a retail building used in the business of a sole proprietor is sold on march 10, 2021, for $342,000. the building was acquired in 2011 for $400,000 and straight-line depreciation of $104,000 had been taken on it. what is the maximum unrecaptured

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If the company sold the building for $3,42,000, the unrecaptured section 1250 gain from this transaction is $46,000.

What is unrecaptured section 1250 gain?

An income tax provision known as section 1250 gains is made to compensate the portion of profits connected to previously spent depreciation allowances. It only applies to the sale of real estate with depreciable value. The unrecaptured section 1250 gain are typically taxed at a rate of no more than 25%.

The 25% unrecaptured Section 1250 gain tax rate may apply to the gain related to depreciation. Additionally, a 3.8% Net Investment Income Tax may be applied to the sale's taxable gain.

In the given situation the Written down value of building (real estate) is equal to $2,96,000 and the sale value is $3,42,000, net value of proceeds under unrecaptured section 1250 gain is $46,000 ($3,42,000-$296,000).

Thus the gain taxable under income tax provision is $46,000.

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what is the most effective promotional mix to use with products that are convenience goods and purchased routinely?

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advertisement most effective promotional mix to use with products that are convenience goods and purchased routinely. since consumers spend less time choosing what to buy and are familiar with the offerings. Target market traits and buying readiness of customers

Image advertising (brand building) and sales promotions are the two essential components of the promotional mix for convenience products. A strong brand developed through persistent image advertising will be advantageous for convenience products. While promotion is intended to drive transient sales, advertising is done to enhance brand recognition and boost sales. While promotion is the variable of the marketing mix, advertising is one of its components. While promotion has short-term consequences, advertising has long-term effects. A temporary campaign or offer is used by a company as part of its sales promotion marketing strategy to boost interest or demand in its good or service. A company may decide to utilize a sales promotion (or "promo") for a variety of reasons, but the main one is to increase sales.

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federal laws designed to eliminate discrimination based on age in the workplace have also promoted the hiring of older adult workers. group of answer choices true

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Yes, its true. Federal laws designed to eliminate discrimination based on age in the workplace have also promoted the hiring of older adult workers.

A workplace is a place where someone performs work—either for their employer or for themselves. Such a location could be anything from a home office to a sizable office complex or factory. The workplace is one of the most significant social settings outside of the home in industrialized nations, serving as "a core notion for several entities, including the worker and their family, the employing organization, the organization's clients, and the society as a whole." Remote work and the virtual workplace have emerged as a result of the development of new communication technology. A factory, manufacturing plant or a production plant is an industrial facility, often a complex consisting of several buildings filled with machinery, where workers manufacture items or operate machines which process each item into another. They are a critical part of modern economic production, with the majority of the world's goods being created or processed within factories.

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Which ection of the Lean Canva are typically completed firt? Group of anwer choice
Problem and Unique Value Propoition
Channel and Revenue Stream
Problem and Unfair Advantage
Key Metric and Unfair Advantage
Problem and Solution

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The Lean Canvas is typically finished with the problem & unique value proposition first.

What is the definition of a value proposition?

A business model is a succinct explanation of why customers should select your services or products. The exact solution your company offers and the assurance of worth that a consumer might expect from you is more than a presentation of your goods or services.

What sets you unique value proposition?

A statement that explains to potential clients how they will profit from your offer, how your goods or services will meet their wants and solve their issues, and how your offer differs from the competition is known as a UVP (unique value proposition) in business and marketing.

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in year 4, an individual taxpayer purchased qualifying depreciable property for $2,800,000 and is making an election under section 179. assume the statutory maximum section 179 expense is $1,050,000 with a $2,620,000 phase-out threshold. what amount, if any, is the taxpayer's section 179 expense for year 4?

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in year 4, an individual taxpayer purchased qualifying depreciable property for $2,800,000 and is making an election under section 179. $870,000 is the taxpayer's section 179 expense for year 4.

The statutory maximum section 179 expense of $1,050,000 and the phase-out level of $2,620,000 must be taken into account when calculating the taxpayer's section 179 expense for year 4.

The whole statutory maximum section 179 expense may be claimed by the taxpayer if the value of their qualified depreciable property is below the phase-out limit. The amount of the section 179 expense is lowered dollar for dollar for each dollar the property is worth higher than the phase-out threshold.

The taxpayer's qualifying depreciable property in this instance is valued at $2,800,000, which is higher than the phase-out limit of $2,620,000. As a result, the amount of the taxpayer's section 179 expenses that exceed the threshold is decreased by a dollar for dollar amount.

The taxpayer's section 179 charge for year 4 is $1,050,000 - $180,000 = $870,000 since there is a $180,000 gap between the property value and the threshold.

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the insurance provision that provides lower insurance rates for insureds who insure at levels close to the value of property, thus getting insurance coverage closer to property values, is known as

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Coinsurance is an insurance clause that lowers insurance premiums for insureds who insure at amounts close to the value of their property, bringing insurance coverage more in line with property values.

Coinsurance is the sum that an insured must contribute to a covered claim after the deductible has been met. It is typically represented as a fixed percentage. It frequently occurs in health insurance. Coinsurance clauses are included in several property insurance plans. The amount of coverage that the property owner is required to have for a structure in this instance is known as coinsurance.

The 80/20 split, in which the insurer pays 80% and the insured 20%, is one of the most popular coinsurance splits.

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had a 26000000 note payable outstanding, due july 31 borrowed the money to finance construction of a new plant. plannedto refinance the note by issuing long-term bonds. temporarily had excess cash, it prepaid 610,000 of the note on january 23 in february completed a 4100000 bond offering what amount of the note payable should include in the current liabilities section of its december 31 balance sheet g

Answers

As per the given transaction, the current liabilities section of its December 31, 2016, balance sheet is $690,000

The term balance sheet in accounting refers the financial statement of a company which includes assets, liabilities, equity capital, total debt, etc. at a point in time

Here we have given that on December 31, 2016, L Inc. had a $3,400,000 note payable outstanding, due July 31, 2017.

And we need to find the current liabilities section of its December 31, 2016, balance sheet.

While we looking into the given question, we have identified that the following,

Here the person called L borrowed the money to finance construction of a new plant.

And then L planned to refinance the note by issuing long-term bonds.

Here we also know that L temporarily had excess cash, it prepaid $690,000 of the note on January 23, 2017.

Ad at the time of February 2017, the person called L has been completed a $4,900,000 bond offering.

Now, here the person called L would use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2017.

And finally, at the time of March 13, 2017, the person called as L issued its 2016 financial statements.

Therefore, the balance sheet is contains the amount of

=> 690,000

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the shipping company charges $75 per crate for cargo a and $100 per crate for cargo b. the truck has a maximum load limit of 7,200 pounds and 1,000 cubic feet. how many of each type of cargo should be shipped to maximize profit for the shipping company?

Answers

The truck can hold a maximum of 1000 cubic feet of space.

50a+10b cubic feet is the sum of the volumes of the boxes carrying cargo A and B, respectively (This sum should be less than volume of truck )

Thus, the disparity increased.

The truck's maximum allowable weight (load limit) is 7200 pounds.

200a+360b cubic feet is the sum of the weights of the crates carrying cargo A and B, respectively.

Thus, the disparity arises.

Additionally, the sum of the numbers of cargo boxes A and B is always positive.

50a+10b = 1000; a> 0; b> 0; 200a+360b = 7200

So, choice b is the appropriate response.

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anium corporation manufactures motorcycle helmets. what is the standard quantity of material used to manufacture each helmet if the material required

Answers

The standard quantity of material used to manufacture each helmet is 1.91 pounds. Therefore, option (A) is the correct answer.

Standard quantity is the amount of resources that would have been required to finish the period's output multiplied by the actual number of units produced by the standard quantity per unit. It is the quantity of materials that ought to have been utilised to produce units of output over a certain time. For instance, a business actually produced 2000 items in March. Five pounds of material were typically needed to create one unit of output. 2000 units x 5 pounds = 10,000 pounds, which is the standard amount permitted for actual production.

Standard Quantity is the amount of the material that is typically ordered from the vendor; it serves as the foundation for calculating the effective price in the evaluation of the vendor and for setting prices when pricing scales are applied.

In the given question,

                       Standard quantity = Material required + Waste + Rejected

                                                      = 1.6 pounds + 0.1 pounds + 0.21 pounds

                                                      = 1.91 Pounds

Therefore, 1.91 pounds is the required answer.

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Complete question:

Anium corporation manufactures motorcycle helmets. What is the standard quantity of material used to manufacture each helmet if the material required is 1.6 pounds, and the company allows for 0.1 pounds of waste and 0.21 pounds of rejected material?

A. 1.91 pounds

B. 1.6 pounds

C. 1.7 pounds

D. 1.81 pounds

if a bank doubles the amount of its capital and roa stays constant, what will happen to roe?

Answers

If a bank increases its capital payments while maintaining its ROA, its ROE will be cut in half.

Furthermore, equity holders value ROE more than ROA since ROE informs shareholders about the earnings on their equity investment. ROA, on the other hand, will solely give information regarding the management of the banks' assets.

The advantage is that the bank now has a greater buffer of bank capital and is less likely to fail if it suffers losses on its loans or other assets. The cost is that it will have a lower ROE, or return on equity, for the same ROA.

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two common areas of accounting that respectively provide information to internal and external users are

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Two common areas of accounting that respectively provide information to internal and external users are managerial accounting and financial accounting.

Financial accounting is the process of recording, examining, and summarising each transaction made by a company or organisation in order to evaluate its stability and financial health. The Financial Accounting Standards Board (FASB), a US organisation, has established a set of rules that must be adhered to. These have also been referred to as Generally Accepted Accounting Principles (GAAP), and they were developed to make accounting procedures simpler, more reliable, and uniform across all businesses.

A registered company's principal duty is to assess its financial year's performance, progress, and areas that require improvement. This enables the business to evaluate the state of the economy as a whole, identify problems, and quickly fix them.

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the monthly premium for kevin’s renters insurance is $15, and his deductible is $500. during the month of april, someone breaks into his apartment and steals or destroys $2200 worth of his possessions. how much will kevin pay and how much will the insurance pay to replace his items?

Answers

Kevin pays $500 and  insurance company will pay $1700 to replace his items.

The term renter's insurance refers to property insurance that protects tenants who live in rental properties. Insurance is provided by insurance companies in exchange for premiums paid by residents of apartments, single-family homes, and condominiums. The policy provides coverage for the insured's personal property as well as non-proprietary liability. These policies also cover living expenses that must be paid when someone files an insurance policy after their home is damaged. Although renter's insurance is not mandatory, some landlords prefer their tenants to have some coverage.

As Kelvin pays  the monthly premium for Kevin’s renters insurance is $15, and his deductible is $500. Therefore, Kevin pays $500 and  insurance company will pay $1700 to replace his items.

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a credit sale of $1,600 is made on april 25, terms 2/10, net/30, on which a sales return of $100 is granted on april 28. what amount is received as payment in full on may 4?

Answers

The correct journal entry to record the purchase on April 25 is c) Debit Merchandise Inventory $1,600; credit Accounts Payable $1,600 based on the purchase information provided by the company.

Why is this the right entry in the journal?

The cost of the purchase was still $1,600 as of April 28. Nothing had yet been given back. Therefore, $1,600 will be deducted from Merchandising's asset account.

To represent that the business still owes money for the purchase, the Accounts Payable account will be credited with the same sum.

What is a payment received?

A payment received is a sum of money that the organization has received and has registered on the system. In response to a bill, received funds are often sent to the organization. In other words, they used to settle obligations. Payments received are not generated as part of case processing, in contrast to payments and liabilities.

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how is the budgeting process for not-for-profit organizations different than the budgeting process for for-profit organizations?

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The budgeting process for not-for-profit organizations is different than the budgeting process for for-profit organizations in some aspects. They are:

Budgeting process for for-profit organizations may come in several perspectives (master budget, operating budget, cash flow budget, and static budget). Budgeting process for not-for-profit organization consists of 2 types of budget (capital budget and operating budget).For-profit organizations based their budgets on their projected income. Not-for-profit organizations construct their budget based on their expenses.Not-for-profit organizations implement one of non-profit budgeting approaches to build their budgeting plan.Not-for-profit organizations include non-monetary contributions in their budgets

Let's discuss each point deeply.

Budgeting for for-profit organisations may represent different perspective on their financial status, including:

Master budgetOperating budgetCash flow budgetStatic budget

Not-for-profit organizations often have to deal with overlapping categories and constant budget modifications. Hence, not-for-profit organizations use 2 types of budget: Capital and operating budgets.

Capital budget includes all projects that have an ongoing impact on an organization's operations. Capital budgets also consists of major expenses. Operating budget provides more breakwodn of an annual projected expenses and revenues according to different funding sources, operating expenses for each program, and overhead costs. Operating budget provides a financial picture of the activities an organization has planned for the coming year.

For-profit organizations start their budgeting expense by budgeting their prospective income. However, not-for-profits use their projected expense to build their budgets. This case happen because the main purpose is to provide benefits to the general public and not aiming for profit or cash income. Most of their income came in a form of donations which is most likely unpredictable.

There are several common nonprofit budgeting approaches that not-for-profits can use to build their budgets efficiently. These approaches are:

Program-based approach: focusing budgets on a particular activityFund-based approach: Treats each funding source as a separate entity and reports transaction based on activities that generate fundsIncome-based approach: Determines how much income is assured over a period, then adds in expenditure that can be covered by that amountIncremental approach: Consider the previous fiscal year's budget to prepare the current year's budgetZero-based approach: Creates a budget with no consideration to previous year's income or expenses.

When budgeting, not-for-profit should include their nonmonetary contributions because they are also part of the organizations' assets and valuable to create impacts. Some example of those nonmonetary contributions are:

Goods: office equipment, furniture, safety kitsServices: meeting space, administrative supportsExpertise: skills, marketing, customer supportsTime

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calculate the payback period of each project. explain what argument sharon should make to show that the payback period is not appropriate in this case.

Answers

The payback period is the time it takes to recover the cost of an investment or the time it takes for an investor to break even.

Some companies rely heavily on payback analysis and only consider investments for which the payback period does not exceed a specified number of years.The payback period formula offers a way to assess the risk of an investment.The payback period is the time required for the amount invested in any project to be repaid by the net cash inflow generated by the project.To calculate the payback period,you can use the mathematical formula Payback Period=Initial Investment/Cash Flow Per Year For example,you have invested Rs 1,00,000 with an annual payback of Rs 20,000.Payback period = 1,00,000/20,000=5 years.You can calculate the payback period for unequal cash flows.To calculate the payback period,the cost of the investment is divided by the new cash flow. It means that the payback period will be 4 years.

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Naomi, the product line manager for a small family business believes that it is time for the company to begin exporting its product to foreign markets. Her father, the owner, is skeptical. To convince her father, Naomi points out that:
exporting is easier because international markets are less complex than domestic markets.
firms that do not export are at a greater risk for economies of scale.
exporting will allow the company to avoid taxation requirements in the domestic market.
firms that do not export often lose out on significant opportunities for cost reduction

Answers

Naomi should explain to her father how exports help in reducing the costs of production through lower labor costs and increased economies of scale.

The correct answer is option D.

Reaching new markets through exporting can boost revenue and profitability, and it might even give businesses the chance to gain sizable worldwide market share. Businesses that simply concentrate on exporting frequently miss out on considerable chances for cost- and revenue-saving growth. Your company will need to raise output in order to increase sales abroad. Increasing output may lead to lower costs per unit of product, depending on how effectively your company operates. This enables your business to take advantage of economies of scale, lowering overall expenses and raising net income.

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