The investment might be either a short-term investment or a long-term investment from the perspective of the accounting period.
The required details for short-term investment in given paragraph
If you hold an investment for less than a year, it is considered short term. In the example provided, Aster Inc. spent $20,000 in bonds that will mature in eleven months, making this investment a short-term investment that should be recorded under the heading "Investment." Short-term investments frequently come in the form of certificates of deposit (CDs), money market accounts, high-yield savings accounts, government bonds, and Treasury bills.
Short-term investments often have lower rates of return, are very liquid, and allow investors to swiftly withdraw money if necessary. Financial investments with a short term horizon are those that are easily convertible to cash.
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if operating leverage is high, a small percentage increase in sales produces a (higher/lower) percentage increase in net operating income than if operating leverage is low. (enter either higher or lower.)
If operating leverage is high, a small percentage increase in sales can produce a much higher percentage increase in net operating income.
What is operating leverage?
A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.
Split an entity's contribution margin by its net operating income to determine operating leverage. The contribution margin is calculated as sales less variable costs.
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the prisoner's dilemma is an example of market signaling. a zero-sum game. a non-zero sum, non-cooperative game with a dominant strategy. adverse selection.
The prisoners dilemma is an example of a non cooperative game.
Prisoners Dilemma
The prisoner's dilemma is a common example of a game studied in game theory that demonstrates why two totally rational actors may refuse to cooperate even though it appears to be in their best interests to do so. Merrill Flood and Melvin Dresher framed it in 1950 while working at RAND. Albert W. Tucker formalised the game with prison sentence prizes and dubbed it "prisoner's dilemma," a version of which William Poundstone said in his 1993 book Prisoner's Dilemma as follows: "Two members of a criminal gang are arrested and imprisoned." Each prisoner is in solitary confinement and has no way of communicating with or sending messages to the other.
So, a zero-sum game, a non-zero sum, non-cooperative game is tough to achieve.
Therefore, the correct option is C.
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Tastes change so that demand for a product increases. At the same time, taxes on the product paid by the producer are lowered. Given that output increased, which change had the largest effect?.
A basic tenet of economics is that when there is a surplus of an item or service above what is needed, prices will decline. Prices usually rise when supply is insufficient to meet demand. When demand is constant, the connection between supply and prices of products and services is inverse.
A decline in demand will result in a drop in supply and a decline in the equilibrium price. The equilibrium products will decrease with an increase in supply, leaving all other factors unchanged, but the amount demanded will rise. When supply is constant but demand rises, there is a shortage, which raises the equilibrium price. Demand falls while supply stays the same, creating a surplus and a lower equilibrium price. A surplus results in a lower equilibrium price if supply grows while demand stays the same.
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Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $25,148 and has a margin of 8%. Based on historical averages, 89 of people buying a new vehicle at Eastern will return for service 7 times over the next 5 years. Though it varies considerably, Eastern generates approximately $96 in margin on each service visit after accounting for parts and direct labor costs.
Not including service, what is the average dollar margin for each new vehicle sold?
The total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $2,609.92
Given,
Year time horizon = 5 year
Average vehicle sells for = $25,148
Margin = 8%
So, margin on selling vehicle = Average vehicle selling price * Margin = $25,148 * 8% = $2,011.84
Margin generated by 89% of people who return for service over 5 years = Number of times * Margin generated on each service = 7 * $96 = $672
Total estimated customer lifetime value (CLV) at Eastern Motors = Margin on selling vehicle + (Margin generated by 89% of people who return for service over 5 years * 89%) +
(Margin generated by 226% of people who do not return for service over 5 years * 22%) = $2,011.84 + ($672 * 89%) + ($0 * 22%) = 2,609.92
Hence, the total estimated CLV over a 5 year time horizon for a person who purchases new vehicle at Eastern Motors is $2,609.92
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why conflict may arise between different business stakeholders
The reason conflict may arise between different business stakeholders is : Remuneration or salary.
Who is a stakeholder?A stakeholder can be defined as workers or employee who ensures that the day to day operation of a business are run smoothly and this people tend to have the interest of a company or an organization at mind because they want the company in which they work to succeed or to achieve their sets goals and objectives.
Every companies or organization needs a stakeholder based on the fact that a company cannot solely run on its own without a stakeholder.
The major reason why a conflict may arise between different business stakeholders is salary based on the fact that some business owner aim is to make profit without paying a goods salary to their workers as every worker desire to earn a goods salary after putting in their best to ensure that a business succeed.
On the other hand some company tend to make good profit and as well pay their worker a good salary so as to motivate them.
Therefore we can conclude that conflict between a business owner and a stakeholder can occur as a result of poor salary or wages.
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A recent change in indian law allows some foreign retailers to operate in india without partnering with an indian company. This represents a lowering of ________ to international trade.
If Indian law allows some foreign retailers to operate in India without partnering with an Indian company, then this represents a lowering of economic barriers to international trade.
In the field of business, a barrier can be described as a factor that prevents others to execute their business in a certain place according to the business policies made by a place or country.
Many countries do not allow foreign retailers to conduct their business in the country without a local partner. This is done so that the competition for local businesses stays limited.
However, to empower international trade, a country might need to lower its economic barriers and allow other countries to conduct business in it without a local partner.
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may be necessary because acquisitions create a situation in which the newly formed firm has excess capacity in organizational functions such as sales, manufacturing, distribution, and human resource management.
Downsizing may be necessary because acquisitions create a situation in which the newly formed firm has excess capacity in organizational functions such as sales, manufacturing, distribution, and human resource management.
What is downsizing?A layoff or downsizing is the temporary moratorium or permanent termination of an employee's or, more typically, a group of employees' employment for business reasons such as personnel management or reducing a company.
It is to be noted that some of the methods of downsizing are;
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Full Question:
__________ may be necessary because acquisitions create a situation in which the newly formed firm has excess capacity in organizational functions such as sales, manufacturing, distribution, and human resource management.
a. Management buyout
b. Leveraged buyout
c. Downsizing
d. Downscoping
one of the advantages of a wide span of control is: group of answer choices a lack of synchronization greater organizational flexibility a high degree of control close supervision of employees an absence of managerial support
One of the advantages of a wide span of control is it allows for quick coordination and decision-making. Increased motivation Less critical decision-making is delegated to employees by managers.
Because wide span are more involved in making decisions about their work, employees may experience higher levels of job satisfaction and motivation. A broad range of control costs less because the company has fewer management. Most employees are on the same level and can collaborate with one another with clear delegation of tasks when there is only one management, or when there is a manager with a supervisor or team leader in the hierarchy below.
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green oval electronics employs approximately 2,700 employees. during a recent workforce survey, it was found that 97 percent of the company's managers are white, although only 62 percent of the company's entire workforce is white. the company decided to implement a voluntary affirmative action plan that would reserve 25 percent of the openings in a managerial development program for blacks and other minorities, only until the percentage of minority employees working as supervisors was representative of the percentage of available minorities in the local labor force.
This affirmative action plan is legal because it is temporary and does not unnecessarily infringe on the rights of white employees.
For federal contractors and subcontractors, affirmative motion ought to be taken by using included employers to recruit and strengthen qualified minorities, girls, individuals with disabilities, and included veterans. Affirmative actions include schooling packages, outreach efforts, and different advantageous steps.
Affirmative movement goals to proper historical wrongs by means of favoring described agencies of individuals that were discriminated in opposition to within the past.
As instance, a company may publish jobs in regions with high numbers of minority activity seekers to reach those under-represented applicants.
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developing countries should part 2 a. focus on producing service goods. b. not focus on economic growth. c. focus on production based on comparative advantage. d. produce goods that are capital intensive and not labor intensive.
Developing countries should focus on production based on comparative advantage.
Comparative advantage is an ability possessed by individuals, companies, or countries to produce goods and services using a lower amount of funds than the funds issued by competitors. Comparative advantage can provide the ability to sell goods or services at a lower price than competitors. Not only that, but comparative advantage can also help business owners realize a fairly strong sales margin.
The use of large amounts of funds by competitors who have a comparative advantage may not necessarily be able to obtain good results than with other companies that produce goods or services. This proves that a sacrifice in the form of spending funds or capital that is large enough may not necessarily produce a profit.
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read the following statements to select which one is accurate regarding the use of social media in market segmentation. as compared to traditional segmenting techniques, it is easier to know exactly how to engage consumers on social networking sites. social media is most helpful in reaching out to older americans and senior citizens. social media is not very helpful in segmenting markets, but it can be a useful tool for marketers once the market has already been segmented. by segmenting the market by those who are active on social media, companies can connect with a larger and more diverse consumer base. as of yet, social media has not been proven to be an effective tool for segmenting markets.
Demographic segmentation is one of the most commonplace bureaucracies. It refers to splitting up audiences primarily based on observable, people-based totally differences.
Those qualities include such things as age, sex, marital repute, family length, profession, education stage, profits, race, nationality, and religion.
The 4 simple kinds of marketplace segmentation are:
Demographic.
Psychographic.
Geographic.
Behavioral.
Social media segmentation is the manner of breaking down and organizing your target audiences based on shared characteristics like demographic records, behavioral conduct, and geographic location.
This makes it less complicated to create commercials that are extra targeted to the pursuits of a particular target audience.
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jane, from colorado, is an active skier and describes herself as someone who seeks self-expression. she loves racing down a mountain, and on vacations she often seeks out challenges and thrills of all types. marketers would use this information when incorporating
Marketers will use this information of Jane while incorporating lifestyle segmentation.
Lifestyle Segmentation- A marketing technique called lifestyle segmentation entails dividing client information into smaller groups. These components represent the shopper's preferences, hobbies, dislikes, and regular behaviors. These segments are used by marketers to develop customer personas and tailored advertising campaigns that more adequately describe the wants and demands of their target market.
This tactic is a crucial component of targeted advertising, which is gaining popularity with businesses from all sectors. Age, activity, income, opinions, relationship status, work status, and attitudes are a few of the variables that marketers take into account while lifestyle segmentation.
Here, the hobbies, activities and attitude of Jane will be considered for segmenting the market on the basis of lifestyle.
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you have the choice of two equally risk annuities, each paying $5,000 per year for 8 years. one is an annuity due and the other is an ordinary annuity. if you are going to be receiving the annuity payments, which annuity would you choose to maximize your wealth?
You have the option of two equally risk annuity, each paying $5,000 per year for 8 years. The is an annuity due and the other is an ordinary annuity. If you are going to be receiving the annuity payments, the annuity due would you choose to maximize your wealth.
What is an Ordinary Annuity?
An ordinary annuity is a series of equal payment made at the end of consecutive periods over a fixed length of time. An standard annuity's payments can be paid as frequently as weekly, although in reality they are typically made monthly, quarterly, mid-annually, or yearly. An annuity due is the reverse of a Ordinary annuity in that payment are issued at the start of each period. Although they are connected, these two payments schedules differ from the financial instrument known as an annuity.
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you work for a software development company as the chief marketing officer. you have market research teams, design teams, and sales teams in different locations around the globe. you communicate regularly with supervisors and team leads; however, you would like to create a more direct line of communication with all of the employees in your department. you want to streamline how your department receives information from you and allow employees to share comments publicly on your updates. you would like to schedule a meeting to discuss how to best facilitate this.
Broadcast, communicated, saved, or watched via electronic devices, such as computers, phones, email, and video, is referred to as an electronic communication. The electronic communications tool would I recommend is Email.
What is meant by electronic communications?Any kind of communication that is broadcast, communicated, saved, or watched via electronic devices, such as computers, phones, email, and video, is referred to as an electronic communication. But each has a particular purpose and is more appropriate in certain circumstances.
Saves time and money while communicating electronically. For instance, text SMS is less expensive than a regular letter. Instantaneous feedback exchange is made possible via electronic communication. Consequently, using electronic means to communicate becomes optimal.
Any kind of communication that is broadcast, communicated, saved, or watched via electronic devices, such as computers, phones, email, and video, is referred to as an electronic communication. But each has a particular purpose and is more appropriate in certain circumstances.
The electronic communications tool would you recommend is Email.
The complete question is:
You work for a software development company as the chief marketing officer. You have market research teams, design teams, and sales teams in different locations around the globe. You communicate regularly with supervisors and team leads; however, you would like to create a more direct line of communication with all of the employees in your department. You want to streamline how your department receives information from you and allow employees to share comments publicly on your updates. You would like to schedule a meeting to discuss how to best facilitate this.
Which electronic communications tool would you recommend?
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The Team meeting with the The meeting with the marketing team will be more productive. This section will explain what you should cover each time your marketing team meets, whether it is weekly or monthly. We also recommend creating a slide deck to show your team at each meeting so that everyone can keep track of each agenda item.
What exactly is a team meeting?A team meeting is defined as a scheduled conversation in which employees discuss a specific topic or list of topics that should be outlined on the meeting leader's pre-planned agenda.
The primary goal of a team meeting is to efficiently share information while also providing opportunities for discussion about what is shared. A good team meeting helps teams align on the topics of discussion, air any concerns or obstacles, and plan for the future.
Team meetings that are effective allow groups to discuss complex issues and brainstorm ideas and solutions. It is easier and faster to discuss project issues with many variables in a meeting. Effective team meetings enable teams to reach consensus faster than emails ever could.
Hence, the marketing team meeting will be more fruitful.
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of a company is its current assets, less current liabilities, that a firm uses to produce goods and services and to finance the extension of credit to customers.
Working capital is the current asset less current liability of a company that is used to produce goods and services.
Working capital is the amount of money that businesses require to manage their day-to-day expenses such as production of goods and services, paying operating charges, payment of trade payables etc. Working capital simply indicate the financial health of the company. If a company is having sufficient amount of working capital, it will be able to manage properly its activities if not then lack of sufficient working capital can cause problems.
Working capital can assist in smooth out income volatility. Many firms experience seasonal variation in sales, with some months selling significantly more than others. A company with adequate working capital can make additional purchases from vendors to begin preparing for crowded months while trying to meet its payment commitments all through periods of reduced revenue.
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Working capital is the current asset less current liability of a company that is used to produce goods and services.
Working capital is the amount of money that businesses require to manage their day-to-day expenses such as production of goods and services, paying operating charges, payment of trade payables etc. Working capital simply indicate the financial health of the company. If a company is having sufficient amount of working capital, it will be able to manage properly its activities if not then lack of sufficient working capital can cause problems.
Working capital can assist in smooth out income volatility. Many firms experience seasonal variation in sales, with some months selling significantly more than others. A company with adequate working capital can make additional purchases from vendors to begin preparing for crowded months while trying to meet its payment commitments all through periods of reduced revenue.
The complete question is here:
------------ of a company is its current assets, less current liabilities, that a firm uses to produce goods and services and to finance the extension of credit to customers.
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engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 145,000 100% variable expenses 58,000 40 contribution margin 87,000 60% fixed expenses 21,000 net operating income $ 66,000 required: 1. what is the company’s degree of operating leverage? 2. using the degree of operating leverage, estimate the impact on net operating income of a 24% increase in unit sales. 3. construct a new contribution format income statement for the company assuming a 24% increase in unit sales.
1. Company's degree of operating leverages = 1.31
2. When Company's sales increase by 24% then contribution also increases by 24%, the operating leverages = 1.24
3. Contribution format income statement assuming a 24% increase $71,920
What Is Operating Leverage?Operating leverage may be a cost-accounting formula that measures the degree to which a firm or project could increase operating income by increasing revenue. A business that generates sales with a high margin of profit and low variable costs has high operating leverage
Equating the numerical :1. Degree of operating leverage = [tex]\frac{Contribution }{Net operating income}[/tex]
Contribution = 87,000
Net Operating Income = $66,000
Thus, operating Leverage = [tex]\frac{87,000}{66,000}[/tex] = 1.31
2. If Company's sales increase by 24% then contribution also increases by 24%, :
Revised Contribution = $87,000 + 24 % = $107,880
Revised net Operating income = $107,880 - $21,000 (Fixed Cost) = $86,880
Degree of operating leverage = [tex]\frac{107,880}{86,880}[/tex] = 1.24
3. Contribution format income statement:
Sales = $145,000 + 24% = $179,800
Less: Variable Cost 58,000 + 24 % = $ 71,920.
Contribution = $107,880
Less: Fixed Cost = $21,000
Net Operating Income = Contribution - fixed cost
= $86,880
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Help please 70 points and will mark brainliest!!!
Answer:
20th August 2021
Wikipedia
nestle
Answer:
e
Explanation:
it makes the most sense
with the five forces model, companies should watch the forces in the market. if the forces are strong competition generally increases and if the forces are weak competition typically decreases. group of answer choices true false
It's true that businesses should keep an eye on market forces when using the Five Forces Model. Competition normally grows when the forces are strong and diminishes when the forces are moderate.
What Are the Five Forces of Porter?
An industry's vulnerabilities and strengths can be ascertained using Porter's Five Forces, a model that identifies and examines five competitive forces that affect every industry. The structure of an industry is typically identified using the Five Forces analysis to develop company strategy.
Any sector of the economy can benefit from using Porter's model to better analyze industry rivalry and increase long-term profitability. After Michael E. Porter, a professor at Harvard Business School, the Five Forces concept was created.
Porter's five forces are:
There is conflict in the sector.Potential for new competitors to enter the marketInfluence of suppliersInfluence of consumersReplacement product riskThe limitations of the Five Forces model are exacerbated by the effects of globalization, notably the fact that it is backward-looking and its findings are largely only relevant in the short term. Another significant flaw in the framework is the propensity for using it to evaluate a single company rather than a whole industry, which is what it was designed for.
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What best describes the main purpose of a budget
Explanation:
A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
If alejandro wants to pay off his student loan by basing it on how much he is earning at his job after graduation, what type of repayment plan is best for him?.
If alejandro wants to pay off his student loan by basing it on how much he is earning at his job after graduation, The type of repayment plan that is best for him is; Income-Driven Repayment Plan..
What is Income-Driven Repayment Plan?Income-Driven Repayment Plan can be defined as the plan that enables you to pay off your student loan by paying some certain amount of money to you every month and this money you are been paid will be determine by your income.
Based on the scenario it is advisable that he enroll under Income-Driven Repayment Plan as this will help him to pay off his student loan.
Therefore we can conclude that Income-Driven Repayment Plan is the right plan for him.
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carrie, a white employee, alleged that she was forced to leave her job for refusing to follow her employer's discriminatory practices against asian employees.
Carrie, a white employee, alleged that she was forced to leave her job for refusing to follow her employer's discriminatory practices against Asian employees. Carrie had a valid claim on title VI of the Civil Rights Act of 1964.
The Civil Rights Act of 1964 is a landmark civil and labor law that prohibits discrimination based on race, color, religion, sex and national origin.
The Civil Rights Act of 1964 prohibits discrimination based on race, color, religion, sex, or national origin. This Civil Rights Act provision prohibits discrimination based on gender and race in hiring, promotion, and termination.
The result was the Civil Rights Act of 1957, the first civil rights act since Reconstruction. The new law created the Department of Justice's Civil Rights Division and empowered federal prosecutors to seek injunctions against interference with voting rights.
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Legal document specifying what a patient would like to have done for health care if he or she becomes incapacitated and cannot make decisions; also known as a living will?.
A legal document specifying what a patient would like to have done for health care if he or she becomes incapacitated and cannot make decisions; also known as a living will is a True Statement.
A legal document that outlines a contractual arrangement or gives rights. The instrument, legal instrument, and official document are some synonyms. Mutual commitments between two or more people include contracts and agreements.
A living will is a legally binding agreement that outlines your preferences for additional medical decisions, such as pain management or organ donation, as well as the medical procedures you would not want to be used to maintain your life.
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true or false: the division of value between the buyer’s share of value captured and the firm’s share of value captured is determined by the cost paid by the firm.
The statement "the division of value between the buyer’s share of value captured and the firm’s share of value captured is determined by the cost paid by the firm" is False
This is further explained below.
What is the division of value?Generally, the business and the buyer haggle over how to divide the value between their respective shares, the buyer's share of value, and the firm's part of the value.
In other words, the distribution of value is determined by the negotiation that takes place between the buyer and the enterprise.
The negotiation that takes place between the company and the customers, as well as the profit that the company makes when selling its product, is partially determined by the price that the customers pay for the product that the company sells.
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1. shane wanted to have a recording studio custom-built in his home. he sought estimates from several contractors. rory submitted the lowest estimate. shane called rory to ascertain the quality of the materials in the estimate and to find out if he could substitute a superior brand of acoustic tiles for the same price. rory said that he would have to check into the price difference. the parties also discussed a possible start date for construction. two weeks later, shane changed his mind and decided not to go forward with his plan of building a recording studio. rory filed suit against shane for breach of contract. a. did rory's estimate meet the requirements for an offer? why or why not? b. was there an acceptance of the offer by shane? why or why not? 2. bart owned 100 shares of a stock that was actively traded on a national stock exchange. bart offered the 100 shares to any of a group of six people in a conversation at a party. the offered price was $72.50 per share, the price at which the shares had closed that day. no one really responded to the offer at that time. ten days later when the shares were trading at $76.25, marie, one of the offerees at the party, appeared at bart's office saying that she accepted the offer. bart claimed the offer no longer was available. a. did bart make a valid offer? why or why not? b. explain whether you think marie has a valid claim for breach of contract against bart.
Law on Contracts refers to an agreement between two parties that have mutual obligations and who provide the agreed-upon consideration under the law, with the stipulation that the other party accept the consideration.
Which agreement between two parties is a contract?
Commercial agreement: Written business agreements serve as a record of the negotiations between parties addressing the commercial elements of goods or services. The agreements outline each party's responsibilities and the advantages they will receive as a result of the agreement.
What does a contract's "mutual obligation" mean?
The term "mutuality of obligation" refers to both the initial commitment to provide the task (and pay for it) and the ensuing commitment to complete it (and get paid for it). It's one of the primary criteria by which tax inquiries and employment tribunals can decide whether a contractor is an employee or not (and whether they owe any tax).
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on december 31, 2021, the ledger of hunter company contained the following account balances: cash $ 33,000 jessica hunter, drawing $ 26,000 accounts receivable 2,900 fees income 53,750 supplies 2,100 depreciation expense 2,750 equipment 26,000 salaries expense 17,000 accumulated depreciation 2,500 supplies expense 3,000 accounts payable 3,000 telephone expense 2,600 jessica hunter, capital 60,750 utilities expense 4,650 all the accounts have normal balances.
Based on the account balances of Hunter Company, the closing entry for revenue and expenses are shown below:
Date General Journal Debit Credit
Dec. 31 2021 Fees income $53,750
Income summary $53,750
Date General Journal Debit Credit
Dec. 31 2021 Income summary $30,000
Depreciation expense $2,750
Salaries expense $17,000
Supplies expense $3,000
Telephone expense $2,600
Utilities expense $4,650
How to make the closing entries?Closing entries aim to close off temporary accounts such as revenue and expenses. To close off the revenue account, the fees income account for service companies is debited by the income summary account.
The various expense accounts would then be sent to the income summary account. This happens why debiting those expense accounts and then crediting the income summary account.
In conclusion, expenses and revenue are closed to the income summary account.
Rest of the question is:
Record the closing entry for revenue and expenses.
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during the current year, nordsom corp. increased its warranty accrual by $30,000 based upon recent experiences with product returns resulting from manufacturing defects originating last year, but not discovered until this year.
Nordsom Corp. increased its warranty accrual by $30,000 in 2020, based on recent experiences with product returns caused by manufacturing defects that occurred in 2019 but were not discovered until 2020. Accounting estimate modification / prospective treatment.
What is Product returns?A product return in retail is the process of a customer returning previously purchased merchandise to a retailer and receiving a refund in the original form of payment, an exchange for another item, or a store credit. Unmet expectations, damaged or defective products, and incorrect fit are the most common reasons for purchase returns. Any of these issues could be the result of merchant failures or events over which the merchant had no control. A returns policy specifies the conditions under which a customer may return a product for cash, exchange, or store credit, as well as how the merchandise should be packaged and shipped to the manufacturer or seller.To learn more about Product returns, refer to:
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If a company’s inventory was destroyed by fire, but the accounting records were saved, the method that would probably be used to estimate the amount of inventory lost would be ________.
The method that would probably be used to estimate the amount of inventory lost if a company’s inventory was destroyed by fire but the accounting records were saved is gross profit method.
The gross profit method can be described as the estimate value of inventory by applying the company's historical gross profit percentage to current‐period information about the cost of goods available for sale and net sales. Gross profit equals net sales minus the cost of goods sold., so the formula of gross profit method is:
Gross Profit = Revenue – Cost of Goods Sold
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. because some people's incomes rise faster than inflation while others people's incomes rise more slowly: a) there are no adverse effects from inflation. b) there are redistribution effects from inflation. c) arms were created. d) people shorten their time horizons.
Because some people's incomes rise faster than inflation while others people's income rise more slowly There are no adverse effects from inflation.
The term "income" refers to the cash that is given to a person or organization in return for their services or goods. According on the situation—for instance, taxation, financial accounting, or economic analysis—income may have a variety of definitions. Most people define their income as their overall earnings, which includes their wages and salaries, investment returns, pension payments, and other receipts. Income for businesses refers to the sum of the money collected from the sale of goods and services as well as any interest or dividends on the company's cash holdings and reserves.
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question mode multiple choice question livelife company had a credit balance of $10,000 in accounts payable at the beginning of the period, and a credit balance of $6,000 at the end of the period. based on this information, the adjustment to net income for the period will be reported as
At the beginning of the period, accounts receivable had a debit amount of $10,000, and at the end of the period, it had a debit balance of $6,000.
A drop of $4,000 will be added to net income as a result of the adjustment to net income for the period, which is based on this information.
What happens when the amount of accounts receivable increases over time?
An increase in an organization's accounts receivable balance indicates that more income has been generated with credit payments; consequently, more cash payments will need to be collected in the future. The amounts billed to the consumers who made credit payments, on the other hand, were received in cash if a company's A/R balance decreased.
What causes a decline in accounts receivable?
The ratio decreases when the balance of accounts receivable grows more quickly than sales grow. A decreasing ratio is mostly brought about by changes to the company's credit policy and growing issues with timely receivables collection.
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gray company estimates its doubtful accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. the gray company computes a total of $3,600 in estimated doubtful accounts as of december 31. its accounts receivable account has a balance of $112,800 and its allowance for doubtful accounts has a credit balance of $600 before adjustment at december 31.
To get the allowance to the desired balance of $3,600, The Great Landscapes Company will need to increase the allowance account by $3,000, resulting in a bad debt expenditure of the same amount.
What is meant by an allowance for doubtful accounts?Because it lowers the value of an asset—in this example, the accounts receivable—the allowance for dubious accounts is referred to as a "contra asset." The projection made by the management of the number of accounts receivable that customers won't pay is known as the allowance also referred to as a bad debt reserve.
If actual results differ from expectations, management adjusts its estimating methodology to better align the reserve with actual results. When the provision for doubtful accounts is recorded concurrently with the sale under accrual-basis accounting, the accuracy of financial reports is improved.
By accurately matching the anticipated bad debt charge to the related sale, a more accurate picture of revenue and expenses for a specific time period is produced.
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