Open market operations are 1) the buying and selling of existing U.S, government securities in open private markets by the Fed. 2) the actions of the Fed that are used to finance deficit financing by the government. 3) the selling of new government securities in order to increase the money supply 4) the buying of existing corporate securities in secondary markets by private citizens, banks and the Fed.

Answers

Answer 1

The Fed engages in open market operations when it purchases and sells current U.S. government securities on public and private exchanges.

What is the term for the Fed's purchases and sales of securities?

In order to regulate interest rates and the money supply, the Federal Reserve buys and sells government assets. Open market activities are what this activity is known as.

How does the Fed alter the amount of money in circulation through open market operations, often known as the buying and selling of government securities?

Major Takeaways. Interest rates are manipulated by the Federal Reserve using open-market operations. The Fed influences demand by purchasing and selling assets to alter supply, which in turn affects demand and causes rates to rise or fall. One method by which the Fed affects the economy is through open-market activities.

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Related Questions

The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Green Caterpillar Garden Supplies Inc. generated $350,000 net income on sales of $12,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 35%.Suppose Green Caterpillar Garden Supplies Inc.’s assets are fully utilized. Use the additional funds needed (AFN) equation to determine the increase in total assets that is necessary to support Green Caterpillar Garden Supplies Inc.’s expected sales. (Note: Do not round intermediate calculations.)$561,000$459,000$510,000$535,500

Answers

The increase in total assets necessary to support Green Caterpillar Garden Supplies Inc.'s expected sales is $14,152,500.

What are total assets?

Total assets refer to the total value of all the assets that a company owns. Assets are resources that are owned by a company and are expected to provide economic benefits to the company in the future.

To determine the increase in total assets that is necessary to support Green Caterpillar Garden Supplies Inc.'s expected sales, you can use the additional funds needed (AFN) equation. The AFN equation is used to calculate the amount of financing that a company needs to support its expected sales and maintain its desired level of dividends.

The AFN equation is:

AFN = Sales - Net Income - Dividends

In this case, Green Caterpillar Garden Supplies Inc. expects sales to increase by 17% this coming year, which means that the expected sales for the coming year will be $12,500,000 * 1.17 = $14,625,000.

The firm also expects to maintain its long-run dividend payout ratio of 35%, which means that the expected dividends for the coming year will be $350,000 * 0.35 = $122,500.

Plugging these values into the AFN equation, we get:

AFN = $14,625,000 - $350,000 - $122,500

= $14,152,500

Hence, the increase in total assets that is necessary to support Green Caterpillar Garden Supplies Inc.'s expected sales is $14,152,500. This is the amount of financing that the company needs to support its expected sales and maintain its desired level of dividends.

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What is one effective element in the slide above? It provides succinct and clear information. It uses all-white text on a blue background.

Answers

Effective Element in the Slide is that  It Provides Succinct and Clear Information  .

Option A is correct.

Elaborating the slides:

Avoid slides with lots of text. Especially if it's a repeat of what you're saying. Your audience may read your story rather than listen to it. If you want text-heavy slides, gradually reveal the text as needed.

Ideally, only add key topics to your slides in short, concise bulleted format. Much less boring for the audience, the best slides have no text and some speakers use only images.

What are PowerPoint slides?

A slide is one page of a presentation. Collectively, a group of slides can be called a slide deck. A slide show is the display of a series of slides or images on an electronic device or projection screen.

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Complete Question:
What is one effective element in the slide above?
A) It provides succinct and clear information.
B) It uses all-white text on a blue background.

At the end of 2016, Sheridan Company has accounts receivable of $665,400 and an allowance for doubtful accounts of $23,480. On January 24, 2017, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,415.​
(a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off?

Answers

a) Journal entry of write off :

Date account titles and explanation debit credit

 Allowance for doubtful accounts 4415  

     Account receivable   4415

 (To record amount write off)    

b) Calculate cash realizable value :

Before write off After write off

Account receivable 665400 (665400-4415)=660985

Less: Allowance for doubtful accounts (23480) (23480-4415) = (19065)

Cash realizable value 641920 641920

What is Cash realizable value?

The amount of cash left over after deducting the uncollectible amount from an account receivable is known as the cash realisable value. The balance of accounts receivable and the allowance for doubtful accounts on a company's balance sheet are combined to yield this net amount.

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Eagle Sports Supply has the following financial statements. Assume that Eagle’s assets are proportional to its sales.
INCOME STATEMENT, 2019
Sales $ 950
Costs 250
Interest 50
Taxes 150
Net income $ 500
BALANCE SHEET, YEAR-END
2018 2019 2018 2019
Assets $ 2,700 $ 3,000 Debt $ 900 $ 1,000
Equity 1,800 2,000
Total $ 2,700 $ 3,000 Total $ 2,700 $ 3,000

a. What is the internal growth rate of Eagle Sports if the dividend payout ratio is fixed at 70% and the equity-to-asset ratio is fixed at 2/3?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
b. What is the sustainable growth rate?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Answers

Eagle Sports Supply has the following financial statements. The sustainable growth rate is the highest rate of growth that a business or social enterprise may sustain without using more equity or debt to fund expansion is known as that of the sustainable growth rate (SGR). In other ways, it is also the rate with which the business may expand without borrowing money from other sources by using only its internal earnings.

What are the Financial Statements?

Official records of a person's, a company's, or another entity's financial position and actions are called financial statements. The presentation of relevant financial data is done in a methodical manner and an easy-to-understand format.

The activities and financial success of a firm are detailed in financial statements. Government organizations, accounting companies, etc. frequently audit financial statements to guarantee accuracy and then for tax, financing, or investment purposes.

A company's financial health may be seen at a single glance thanks to the financial statements that reveal information about its operations, performance, and cash flow. Financial statements are essential since they provide information on a company's earnings, costs, profitability, or debt.

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Network Industries, Inc., wants to monitor its employees' electronic communications. To avoid liability under laws related to employee monitoring, Network should __announce the monitoring to the company

Answers

False, To avoid liability under laws related to employee monitoring, Network should announce the monitoring to the employees.

How does electronic employee monitoring work?

Electronic monitoring is the process of gathering data from computer, phone, camera, microphone, and other electronic devices regarding the communications and actions of employees. It's a technique for keeping an eye on workplace activity that a manager can't see or hear.

What law applies to the observation of employees?

The bar for employee surveillance while preserving privacy is set by federal statutes like the ECPA. Without a good justification, businesses are not permitted to interfere with electronic communications. Furthermore, several states have laws governing employee consent and data protection.

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____ are complementary goods and services offered to casino patrons in order to attract their business.

Answers

Comps are complementary goods and services offered to casino patrons in order to attract their business.

In the field of business, the extra beneficiary services that are given by a casino to the visitors are referred to as comps.

In countries where the casino business is in trend, the competition for casino patrons is too high. Hence, the casino patrons give comps in order to attract customers and make them permanent visitors of the casino.

The Comps can be in any form such as offering a few drinks or a table to the visitors so that they gain interest in that particular casino.

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Mach each element yo the correct part Of an effective essay attention-getting sentence DOD conclusion body introduction call to action specific details about topic​

Answers

Question: Match each element to the correct part Of an effective essay

The attention-getting sentence is the very first sentence or a sentence close to the beginning of the introduction that grabs the reader's attention. Usually, they are surprising, interesting, or a question.

DOD (I do not know what dod is)

Conclusion – It finishes the essay and concludes it. It usually summarizes the essay's main points and leaves an impact with the reader. Usually, most readers only remember the conclusion of an essay, so it needs to be the so what of an effective essay. The reader needs to walk away having their so what question aswered.

Body – This is where all the information you are talking about should be. Normally, the paragraphs are composed of a topic then an example then an analysis then a conclusion.

Introduction – This is where you introduce your topics and how they fit together. The introduction should be the most engaging part of the essay to keep the readers focused on the essay.

Call to action – This is what you want your readers to do. Is your essay about pollution? Then the call to action might be something like having the readers pick up more trash. The call to action should be what your readers think or do after reading your essay.

Specific details about topic​ – They are what they are. They should be an analysis of the topic or something specific to the topic. Vagueness or ambiguity is frowned upon in most classes. Do not have information that is broad an can be applied to many other topics. The information should apply mostly, if not fully, to your topic.

Hope this helped! Please answer what is DOD and I may be able to help.

Activity goals are important because they reflect how efficiently the salesperson usesresources, such as time, to accomplish performance goals.A. TrueB. False

Answers

Activity goals are important because they reflect how efficiently the salesperson uses resources, such as time, to accomplish performance goals. This statement is true.

What is seven aspects of business?

Seven components of exercise awareness offer aspects of daily life where physical exercise has a significant influence. The spheres typically, though not always, produce distinct physical activity goals in various social circumstances.

One such element is the sphere of self-sufficiency, which has the following definition.

We should execute ADLs and IADLs, the latter of which tend to be more physically demanding, in order to have a stable, independent existence. Then, by engaging in physical tasks that support or improve the home, we become self-sufficient. House upkeep activities refer to all such tasks.

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Prepare an amortization schedule that describes the pattern of interest revenue over the lease term for Bidwell Leasing. (Round your intermediate calculations to the nearest dollar amount.)

Answers

The lessee records a single amount of lease expenditure in its income statement, which is equal to interest expense plus amortization expense.

What Gives You an Amortization Example?

A business may spread out the expense of a patent throughout the course of its usefulness. Consider a scenario in which a corporation holds the sole rights to a patent for ten years with no option for renewal.

What does the term "debt amortization" mean?

The amount of principle and interest paid each month over the duration of your loan term is simply referred to as amortization. The majority of your payment goes toward interest at the start of a loan.

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A real estate brokerage should __________ that will help to minimize risk and potential liability exposures.
Every brokerage should adopt written policies and procedures that define the company's agency representation policies, competitive practices, fair housing guidelines, personnel policies, communications policies, documentation and record keeping policies, and a statement of the company's overall commitment to the ethical and legal practice of real estate. Once adopted, these policies should become part of each licensee's everyday practice and enforced on a consistent basis.

Answers

Adopt written guidelines and regulations maintain audio recordings of all discussions, employ a legal team, and get liability insurance.

By brokerage, what do you mean?

A brokerage offers middleman services in a variety of contexts, including investing, borrowing money, and buying real estate. A counselor is a facilitator who really arranges a sale between a firm and its customers. A reseller could be either an people or a business.

What is a brokerage's process?

On behalf of the clients, such brokerage business sells and purchases stock, bonds, options, and many other financial goods. To combine resources and provide the finest service, a lot of brokerages employ lone brokers. Additionally, a lot of businesses which provide financial products include brokerage houses within their range of offerings.

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West County Bank agrees to lend Drake Builders Company $400,000 on January 1. Drake Builders Company signs a $400,000, 6%, 6-month note. What entry will Drake Builders Company make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? a. Notes Payable. 412,000 Cash 412,000 b. Notes Payable. 400,000 Interest Payable 12,000Cash 412,000 c. Interest Expense. 12,000 Notes Payable. 400,000 Cash 412,000 d. Interest Payable Notes Payable....6,000 Interest Expense 400,000 Cash 6,000 412,0001) a 2) b 3) c

Answers

Drake Builders Company will record a transaction at the note's maturity to pay down the principal and any accrued interest as of June 30 :

Debit Notes Payable 400,000

Debit interest payable 12,000



Credit Cash 412,000

$400,000x .06 x 6/12= $12,000

(Face val. x 6% x 6/12)

Therefore, On January 1, West County Bank accepts Drake Builders Company's request for a $400,000 loan. A 6%, 6-month note for $400 000 is signed by Drake Builders Company.

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The series of bank failures in 1907 occurred despite the creation of the Federal Reserve many years earlier.
False

Answers

The series of bank failures in 1907 occurred despite the creation of the Federal Reserve many years earlier is a False statement

An increase in the reserve requirement ratio increases reserves and decreases the money supply. One plausible explanation for the large amount of U.S. currency outstanding is that many dollars are held abroad.

What is Federal Reserve?

The central banking system of the United States of America is the Federal Reserve System, usually referred to as the Federal Reserve or just the Fed. With the passage of the Federal Reserve Act on December 23, 1913, it was established in response to the need for centralized control of the monetary system to prevent financial crises following a string of financial panics, including the Panic of 1907.

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1. Visit a Web site for a company that sells products online. Then go to that company's
corporate Web site. Compare the company's product sales site with its corporate site.
Describe at least 3 differences between them. (1-3 sentences. 3.0 points)
apply

Answers

The 3 differences between company's product sales site with its corporate site are:

The fact that "items and services push their products as the most prominent thing on the website, whereas the corporate website pushes their values and ethos as the most noticeable thing on their website," is one of the distinctions.

The corporate website lacks areas or parts where customers can order or book things, whereas product or service websites do.

The product and service websites lack this feature, however corporate websites have a part or area where a team member's job description is explained.

What is the corporate Web site about?

A corporate website is a website created to provide information about the goods, services, and history of an organization's business. The purpose and vision statements of the company are also available on its official website.

The corporate websites have license product applications, sponsorship information is provided on the corporate site.

Lastly, the corporate websites are fully fledged sites with all full loaded features that make them heavy and busy at the same time.

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Justin buys and sells items on the internet in order to make a profit. He also has a lawn mowing and snow plowing business. He has not filed papers with the state to formalize any of the businesses. Justin operates as a:
A)Partnership
B)Limited Liability Company
C)Sole proprietorship
D)Corporation

Answers

After analyzing the scenario, Justin operates as a Sole proprietorship. Thus, option C is the correct option.

A sole proprietorship is a type of business structure where a single individual owns and operates a business. It is the simplest and most common form of business ownership. In a sole proprietorship, there is no legal distinction between the owner and the business entity.

The owner retains all profits and assumes all liabilities and responsibilities for the business. This structure offers simplicity in terms of setup and decision-making, but the owner also has unlimited personal liability for the business's debts and obligations.

Thus, option C is the correct option.

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assertions are expressed or implied representations by management that are reflected in the financial statement components. the auditor performs audit procedures to gather evidence to test those assertions.

Answers

Accounting management assertions are implicit or specific claims made by way of economic announcement preparers. Those assertions attest that the preparers abided by using the essential regulations and accounting standards while preparing the financial statements.

Assertions about presentation and disclosure deal with whether or not unique additives of the economic statements are nicely categorized, defined, and disclosed." The account balance not only ought to be well measured but additionally properly defined and disclosed.

Assertions are characteristics that want to be examined to ensure that financial data and disclosures are correct and appropriate. If assertions are all met for applicable transactions or balances, monetary statements are accurately recorded.

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churchville county is trustee for a multi-government investment pool and has established an investment trust fund. included in the investment trust fund, for management purposes, are investments in the amount of $15 million from the county's general fund, $3 million from the county's special revenue funds, and $112 million from other governments. which of the following would be true?

Answers

The County would disclose the $15 million in its general fund, the $112 million in an investment trust fund, and the $3 million in special income funds.

What purposes serve special income funds?

Special Revenue Funds are used to keep track of certain sorts of revenues that are only allowed to be utilized for certain purposes under the law (except for expendable trusts or major capital projects). For a number of reasons, these revenues must be recorded separately from the General Fund.

What are dedicated general revenue funds?

Dedicated General Revenues (GR-D): An appropriation from General Revenue-Dedicated (GR-D) is a local fund revenue appropriation that has been set aside by legislation for a specific purpose or institution.

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A borrower has two alternatives for a loan: (1) issue a $150,000, 45-day, 4% note or (2) issue a $150,000, 45-day note that the creditor discounts at 4%. Assume a 360-day year. a. Calculate the amount of the interest expense for each option. $ for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $150,000, 45-day, 4% interest-bearing note $ (2) $150,000, 45-day note discounted at 4% $ c. Alternative is more favorable to the borrower because the borrower

Answers

The proceeds received by the borrower in each situation, the Alternative 2 is more favouravle $149,250 proceeds.

A reduction crafted from the gross (see gross entry 1 feel 3b) amount or value of some thing: which include. a(1) : a reduction made from a regular or listing rate. providing clients a ten percentage bargain. purchase tickets at a reduction.

Reductions are discounts of the normal fee of a service or product that allows you to achieve or increase sales. these discounts—additionally commonly referred to as "income" or markdowns—are utilized in a huge variety of industries by using each outlets and manufacturers

Calculation:-

1) $150,000 * 4%*45/360 = $750 for each alternative

(1) $150,000 simple-interest note : $150,000 proceeds

(2) $150,000 discounted note : $150,000 - $750 = $149,250 proceeds

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assume that the market starts in equilibrium at point w in panel (b) which of the following is not correct?

Answers

The word "equilibrium" has its roots in the Latin word "libra," which means "weight" or "balance".

What is equilibrium and example?

A state of mental or emotional balance that results from the interaction of two opposing forces or actions, such as when a force acting on a body has a resultant of zero or when a chemical reaction has equal forward and backward velocities.

Words like equilibrium come from the Latin word libra, which means weight or balance. These are some examples of equilibrium: a table upon which a book, open, is perched. a moving object that moves at a set speed. one in which the rates of the forward and backward reactions are equal.

Equilibrium happens at the point where the supply and demand curves meet.

The point makes clear the ideal cost and output. It can be determined by combining the formulae for quantity demanded and quantity supplied (a - bP = x + yP).

The complete question is:

Refer to Figure 14-14. Assume that the market starts in equilibrium at point W in panel (b) and that panel (a) illustrates the cost curves facing individual firms. Suppose that demand increases from D0 to D1. Which of the following statements is correct? Figure 14-14

Therefore, the correct answer is Points W and Z represent long-run equilibria.

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after weeks of uncertainty about the course the country would pursue to stabilize its troubled economy, officials reached a revised agreement with the international monetary fund, pledging the enforcement of substantially greater budget discipline as that which was originally promised and to keep inflation below ten percent.

Answers

The correct answer is C: to enforce substantially greater budget discipline than originally promised and to keep inflation below ten percent.

This answer accurately captures the agreement reached between the country and the International Monetary Fund. The agreement called for the country to enforce significantly greater budget discipline than what was originally promised and to keep inflation below the ten percent figure. Option A is grammatically incorrect, as the comparison of "as that which" is unnecessary and awkward.

Option B is incorrect because it suggests that the country will merely keep inflation below the ten percent figure, not actually reduce it below that level. Option D is also incorrect because it suggests that the country will keep inflation less than the ten percent figure, which is an awkward phrasing. Option E is incorrect because it suggests that the country will keep inflation less than ten percent, which is an ambiguous phrasing.

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Complete question:

After weeks of uncertainty about the course the country would pursue to stabilize its troubled economy, officials reached a revised agreement with the International Monetary Fund, pledging the enforcement of substantially greater budget discipline as that which was originally promised and to keep inflation below ten percent.

(A) the enforcement of substantially greater budget discipline as that which was originally promised and to keep inflation below ten percent

(B) the enforcement of substantially greater budget discipline than originally promised and keeping inflation below the ten percent figure

(C) to enforce substantially greater budget discipline than originally promised and to keep inflation below ten percent

(D) to enforce substantially greater budget discipline than that which was originally promised and keeping inflation less than the ten percent figure

(E) to enforce substantially greater budget discipline as that which was originally promised and to keep inflation less than ten percent

If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is:

Answers

If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is: 18 Units

At the market price of $6 , the quantity supplied by the producer A = 6 units

At the market price of $6 , the quantity supplied by the producer B = 12 units

Market Quantity supplied at the price $6 ;

= 6 units +12 units

=18 units

A marketplace is a place where customers and sellers can meet to facilitate the change or transaction of products and offerings. Markets can be physical like a retail outlet, or digital like an e-store. different examples consist of unlawful markets, auction markets, and economic markets.

A market is defined as the sum total of all of the shoppers and dealers inside the location or region underneath attention. The place can be the earth, or countries, areas, states, or towns. The cost, price and rate of gadgets traded are as in keeping with forces of deliver and call for in a market.

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the three types of divisional structures are geographical structures, customer structures, and functional structures. true or false?

Answers

The three types of divisional structures are geographical structures, customer structures, and functional structures. This statement is false.

Commercial segmentation. has its own workers that work in product development, production, accounting, and sales and focuses on all commercial customers.

division for retail. focuses on all American retail clients, and employs its own product development, production, accounting, and sales staff.

international splintering concentrates on all non-American retail consumers. It has its own accounting and sales personnel and shares facilities for product research and manufacturing with the retail segment.

As the name suggests, a firm that is geographically structured would group its operations according to geography or region. As an example, the business will divide its activities into the "North America Division" and the "Europe, Middle East and Africa (EMEA) Division."

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Under the indirect method of preparing the operating section of the statement of cash flows, net cash provided by operating activities is $197,000. If the direct method of preparing the operating section of the statement of cash flows was used:
A) net cash provided by operating activities would be the same, $197,000.
B) net cash provided by operating activities would be more than $197,000.
C) net cash provided by operating activities would be less than $197,000.
D) net cash provided by financing and investing activities would equal $197,000.

Answers

If direct method of preparing the operating section of statement of cash flows was used, then : A) net cash provided by operating activities would be the same, $197,000.

What is meant by cash flow?

The net balance of cash moving into and out of a business at a specific point in time is called cash flow. Cash is constantly moving in and out of a business, like for example, when any retailer purchases inventory, then money flows out of the business toward suppliers.

Cash flow from operations comprises of expenditures made as part of the ordinary course of operations. Examples of  cash outflows are payroll, cost of goods sold, rent, and utilities. Cash outflows can vary when business operations are highly seasonal.

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With examples describe how you would conduct situation analysis in determining customer needs and wants

Answers

An example of situational analysis. Customers provide key information about current customers, target markets, and opportunities that companies should pursue through their marketing plans.

The Competitors section shows your company's strengths and how you can improve based on your competitors' strengths and weaknesses.

Why Situational Analysis?

A Situation Analysis helps to understand the baseline of the environment in which the plan will be implemented. Provides a common reference point for the planning process and prioritizes actions.

What is situational analysis and why is it important in market planning?

The "Market Landscape" section of the plan includes research and analysis on the target market, competitors, business challenges and competitive differentiators of the company. Must contain the best and clearest description of the current state of the market

Why is it important to identify customer needs and wants?

Proper identification of customer needs is critical to ensuring customer satisfaction and loyalty. If you don't properly understand your customer's needs, or if their needs don't care about you, they will look elsewhere.

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(Table: Wheat and Corn) Consider a country that produces only wheat and corn. Based on the data in the table, the growth rate of nominal GDP from 2005 to 2006 is:

Answers

Based on the data in the table, the growth rate of nominal GDP from 2005 to 2006 is option a 8%.

Describe GDP.

The gross domestic product, or GDP, is one of the most well-known. It is frequently quoted by governments, central banks, and the business world in books, newspapers, television news, and reports. It is frequently used these days as a benchmark to assess the state of both national and global economies.

How is GDP calculated? Explain GDP.

GDP is calculated by adding private consumption, gross domestic product, government investment, and other elements (exports – imports). The country's official statistical bureau frequently computes GDP using the global standard.

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E3-33B. (Learning Objectives 1, 3: Journalizing adjusting entries and analyzing their
effects on net income; comparing accrual and cash basis) An accountant made the following
adjustments at December 31, the end of the accounting period:
a. Prepaid insurance, beginning, €800. Payments for insurance during the period, €2,500.
Prepaid insurance, ending, €1,400.
b. Interest revenue accrued, €1,200.
c. Unearned service revenue, beginning, €1,500. Unearned service revenue, ending, €600.
d. Depreciation, €4,700.
e. Employees' salaries owed for three days of a five-day work week; weekly payroll,
€24,000.
f. Income before income tax, €21,000. Income tax rate is 25%.
Requirements
1. Journalize the adjusting entries.
2. Suppose the adjustments were not made. Compute the overall overstatement or understate-
ment of net income as a result of the omission of these adjustments.

Answers

The act of logging any transaction, whether or not it is an economic one, is known as a journal entry. Transactions are listed in an accounting journal that shows a company's debit and credit balances.

Give a brief account on adjusting journal entries.

An adjusting journal entry is one that is made at the end of an accounting period in the general ledger of a business to record any unrealized income or expenses that occurred during the period. An adjusting journal entry is necessary to accurately account for a transaction that happens between two accounting periods.

To solve the question :

1. Adjusting journal entries are as follows :

Particulars                                                                  Debit.                Credit

a. Insurance expense A/c

($800 + $2,500 - $2,400)                                          $600

To prepaid insurance A/c                                                             $600

(entry for expired portion of

prepaid insurance)  

b. Interest receivable A/c                                           $1,200

To interest revenue A/c                                                             $1,200

(adjusting entry for

accrued interest revenue)  

c. Unearned service revenue A/c ($1,500 - $600)    $900

To service revenue A/c                                                                       $900

(entry for earned portion of

unearned service revenue)  

d. Depreciation expense A/c                                           $4,700

To accumulated depreciation A/c                                             $4,700

(To record depreciation expenses)  

e. Salaries Expense A/c

($24,000 / 5 days × 3 days)                                             $14,400

To Salaries payable A/c                                                           $14,400

(To record accrued salaries expenses)  

f. Income tax expense A/c

($21,000 × 25%)                                                          $5,250

To income tax payable A/c                                                            $5,250

(To record income tax expenses)

2. Calculating whether these omitted adjustments resulted in an overstatement or underestimate of net income

a. Adjusting Entry for Insurance Expense of $600 : Overstated

b. Adjusting Entry for accrued revenue of $1,200 : Understated

c. Adjusting entry for Service Revenue Earned of $900 : Understated

d. Adjusting Entry for Depreciation Expense of $4,700 : Overstated

e. Adjusting Entry for Salaries Expense for

three day of $14,400 : Overstated

f. Adjusting Entry for Income Tax Expense of $5,250 : Overstated

Impact on Net Income without Adjusting Entries of $22,850 : Overstated

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the quantity theory of money assumes there is a relationship between the quantity of money and the price level.

Answers

The field of economics known as monetary economics focuses on various money theories. The quantity theory of money is one of this discipline of economics' main research areas (QTM).

The general level of prices for goods and services is inversely correlated with the amount of money available in an economy, according to the quantity theory of money. Despite the fact that Nicolaus Copernicus, a Polish mathematician, first proposed this hypothesis in 1517, Milton Friedman and Anna Schwartz, two economists, popularized it in 1963 following the release of their book, "A Monetary History of the United States, 1867-1960."

The quantity theory of money states that, if all other factors are equal, price levels will double if the total amount of money in an economy twice. The consumer will therefore spend twice as much for the same amount of products and services. The level of inflation will eventually rise as a result of these rising price levels since inflation measures how quickly the cost of goods and services is rising in an economy.

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It is possible for an increase in minimum wage to increase the number of workers hired in a competitive labor market, but not in a monopsony setting. True False

Answers

It is possible for an increase in minimum wage to increase the number of workers hired in a competitive labor market, but not in a monopsony setting.  False, it is possible for a Monopsony to hired more workers but the workers are hired at the same minimum wage as before the rise in minimum wages. A monopsony, as compared to a perfectly competitive firm, pays a lower wage and hires more labor.

What is a Monopsony?

A labor market in which there is only one firm demanding labor is called a monopsony.

A monopsonist is the sole demander of the labor in the market, the monopsonist's demand for labor is the market demand for labor.

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qs 9-3 (algo) accounting for sales taxes lo c2 dextra computing sells merchandise for $4,000 cash on september 30 (cost of merchandise is $2,800). dextra collects 6% sales tax. record the entry for the $4,000 sale and its sales tax. also record the entry that shows dextra sending the sales tax on this sale to the government on october 15.

Answers

The total amount of sales taxes a company has gathered from clients on behalf of a governing tax authority is kept in an account called sales taxes payable, which is a liability.

Entry

Sep 30

Cash 4240

Sales 4000

Sales tax payable (4000*6%) 240

Sep 30

Cost of Goods Sold 2800

Inventory 2800

Oct 15

Sales tax payable 240

Cash 240

As the custodian of these monies, the company is responsible for timely remitting them to the government. If the company pays out a lot of sales taxes, the government probably expects them to be paid out once a month.

If the payment is very little, some governments let the payments to be transferred at significantly longer intervals, such as once every quarter or once a year.

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Which of the following statements is true?a) when you buy an equity, your potential loss is unlimited and your maximum potential gain is 100%b) when you buy an equity, your potential loss is 100% and your maximum potential gain is unlimitedc) when you buy an equity, you are promised a stream of fixed dividends

Answers

When you buy an equity, your potential loss is 100% and your maximum potential gain is unlimited.

What is a equity?

Equity in the context of finance refers to ownership of assets with potential obligations such as debts. For accounting reasons, equity is calculated by deducting liabilities from the value of the assets. Equity is the sum of money invested in or owned by a company's owner. The difference between a firm's obligations and assets on its balance sheet indicates how much equity the company has. The equity value is calculated using the share price or a value established by valuation specialists or investors. Any asset's equity is the ownership remaining after all liabilities related to it have been paid off. For instance, if you owe $10,000 on a car you own that is worth $25,000, you have $15,000 in

equity in the asset.

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Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project A has an expected life of 2 years with after-tax cash inflows of $6,000 and $7,900 at the end of Years 1 and 2, respectively. Project B has an expected life of 4 years with after-tax cash inflows of $4,300 at the end of each of the next 4 years. Each project has a WACC of 8%. Use the replacement chain approach to determine the NPV of the most profitable project.
$4,325

Answers

The NPV of project B has the most profitable value.

What is NPV?

Data:

Project A

The initial investment is $10,000.

Y1 CF = $6,000

y2 CF = $7,900

Project B

$10,000 is the initial investment.

Y1-Y4 CF = $4,300

Solution:

Regarding Project A

We will extend the project to four years in order to compare it with Project B.

To begin discounting the cashflow,

NPV = -10000/(1 + 0.08)⁰ + 6000/(1 + 0.08)¹ - 2100/(1 + 0.08)² + 6000/(1 + 0.08)³ + 7900/(1 + 0.08)⁴

NPV = 4324.87

Regarding Project B

The following formula will be used to calculate the present value of the annuity:

PV = PMT (1 + (1/(1+r)ⁿ)/r

NPV = Initial investment - PV

4300(1 +(1/(1 + 0.08)⁴)/0.08  

= 143807.85

NPV = -10000 + 14380.85

NPV = 4380.85

We can now easily calculate how much value the firm will gain or lose if Project L is chosen over Project S.

Value = NPV(B) - NPV(A)

          = 4380.85 - 4324.87

          = 55.98

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