ABC's correct ending balance for the inventory account at the end of 2018 should be S5,000, but the company incorrectly stated it as $3,000. In 2019, ABC correctly recorded its ending balance of the inventory account. Among the given statements Cost of goods sold is understated by $2,000 in 2018 is true .The correct option is (C).
To understand this, let's go through the situation step by step:
1. At the end of 2018, ABC should have reported an ending inventory balance of $5,000, but they mistakenly reported it as $3,000. This means their inventory was understated by $2,000 in 2018.
2. In 2019, ABC correctly recorded the ending inventory balance, which means the error from 2018 doesn't affect the 2019 balances.
Now, let's examine how this impacts the financial statements. When inventory is understated at the end of a period, the cost of goods sold (COGS) will be overstated, as the company appears to have sold more goods than it actually did. However, in this case, the error in ending inventory caused the COGS to be understated by $2,000 in 2018. This is because the company reported a lower inventory balance, which suggests fewer goods were sold than there actually were. As a result of the understated COGS, the gross profit for 2018 would be overstated by $2,000 since the gross profit is calculated as revenue minus COGS.
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How would a two percent rise in interest rates most likely affect new housing?
A two percent rise in interest rates would most likely affect new housing by making the price of the houses fall in the long run.
As the interest rate of possessing a mortgage rises, many individuals would not afford a house with a mortgage.
Subsequently, as people are shying away from possessing mortgages with high-interest rates, home investors and sellers need to reduce their house prices to attract buyers.
Hence, in this case, it is concluded that a two percent rise in interest rates would most likely affect new housing by making the price of the houses reduce in the long run.
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true or false? if a manufacturer pays large margins, this can lead to it becoming a channel commander.
The given statement is true because offering high margins to distributors or retailers can incentivize them to prioritize the manufacturer's products over competitors, giving the manufacturer more power and influence within the distribution channel.
This can allow the manufacturer to dictate the terms of the distribution relationship, such as setting prices, choosing marketing strategies, and determining inventory levels. As a result, the manufacturer can become a channel commander, with significant control over the distribution channel.
However, it is important to note that paying high margins is not the only factor that determines channel power, and other factors such as brand strength, product quality, and innovation can also play important roles in determining a manufacturer's position in the distribution channel.
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.A manufacturing business has purchases of raw materials of $4,500, closing inventory of $1,400 and opening inventory of $800. What is the cost of raw materials used in production?
Answer:
Cost of raw materials used = $5,100
Explanation:
Given:
Purchases of raw materials = $4,500
Closing inventory = $1,400
Opening inventory = $800
Find:
Cost of raw materials used
Computation:
Cost of raw materials used = Opening inventory + Purchases of raw materials - Closing inventory
Cost of raw materials used = 1,400 + 4,500 - 800
Cost of raw materials used = $5,100
Objectives
of the
marketing departments
A bond issue with a face amount of $495,000 bears interest at the rate of 7%. The current market rate of interest is 8%. These bonds will sell at a price that is:
Answer: Less than $495,000.
Explanation:
The options are:
a. Equal to $495,000.
b. The answer cannot be determined from the information provided.
c. Less than $495,000.
d. More than $495,000.
It should be noted that a bond will be sold at a discount when the market interest rate is more than the stated interest rate.
Due to the lower interest rate, the investors will pay less for the bonds. Therefore, based on the information given, the bonds will sell at a price that is less than $495,000.
Therefore, the correct option is C.
Jim has excellent oral and written communication skills. He enjoys public speaking and wants a job in which he will interact with the press and other communication professionals. Which career would allow him to use his skills, talents, and abilities the most?
Answer:
Public Relations Specialist
Explanation:
Considering you do not have answer choices, I would answer that the best career for Jim would be Public Relations Specialist.
a. accounts payable b. cash c. common stock d. accounts receivable e. rent expense f. service revenue g. office supplies h. dividends i. land j. salaries expense
The different accounts and their classification are listed below
:a. Accounts Payable: It is a liability account that records the amount the business owes to creditors.
b. Cash: It is an asset account that reflects the amount of currency and coins on hand as well as in the bank.
c. Common Stock: It is a shareholders’ equity account that represents the amount of money the business owes to its owners.
d. Accounts Receivable: It is an asset account that reflects the amount that the business owes to its creditors.
e. Rent Expense: It is an expense account that records the amount of rent paid by the business for the use of land, building, or equipment
.f. Service Revenue: It is an income account that reflects the total amount of money that the business has earned from rendering services.
g. Office Supplies: It is an asset account that reflects the amount of supplies that the business has on hand.h. Dividends: It is a shareholder’s equity account that records the money paid to shareholders.i. Land: It is an asset account that represents the value of land owned by the business
j. Salaries Expense: It is an expense account that records the amount of salaries paid by the business to its employees.
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Please help me, I’ll give brainliest
Which two things are workers in the Arts, A/V Technology, and Communications cluster most focused on? Check all that apply.
A.calculating
B.training
C.communicating
D.organizing
E.performing
Answer:
communicating and performing
Explanation:
i just answered it
The two things that workers in the Arts, A/V Technology, and Communications cluster focus on are C. communicating and E. performing
Workers in the cluster cannot focus on calculating, training, and organizing. These activities are left for the management cluster.
Workers in the Arts use creative and imaginative skills to perform and communicate the visual effects of their emotional expressions. Similarly, A/V (Audio/Video) Technology workers engage in the communication industry.
Thus, these Arts, A/V Technology, and Communications workers do not focus on calculating, training, and organizing because these activities are carried out at the higher level of the cluster.
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3. The discount rate is the
A. targeted inflation rate for an economy
B. nominal interest rate charged by financial intermediaries when they advance loans.
C. interest rate that the Fed charges on the loans it makes.
D. ongoing taxation rate in an economy.
4. The main liability on the Federal Reserve's balance sheet is
A. capital. B. the monetary base. C. securities. D. discount loans.
5. Third Bank has reserves of $12.3 million and transaction accounts of $115 million. If required reserves are 10 percent of transactions accounts, Third Bank has excess reserves of
A. $0. B. ?$0.8 million. C. $0.08 million D. $0.8 million
The discount rate is the interest rate that the Fed charges on the loans it makes. The main liability on the Federal Reserve's balance sheet is discount loans.
The current value of money paid or received in the future is determined using discount rates.In the cost-benefit analysis, this calculation is used to convert all project-related economic flows into a single year's worth of dollars so that costs and benefits can be compared.
The rates used are typically around 10%, but you should compare them to rates between 5% and 15% to see if the discount rate affects the project's viability. The World Bank or the concerned nation's government define it. The rate of return that financial institutions will experience when they repay the loans they have granted to other institutions is called the discount rate. The amount of money that needs to be worth in order for a financial institution to be able to use that amount of money is called the present value of that amount. The net present value of the money that an institution plans to lend, invest, or spend is determined using the discount rate, allowing the institution to make the best decision for their business.
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calculate the intrinsic value of rio tinto in each of the following scenarios by using the three-stage growth model of spreadsheet 18.1. treat each scenario independently. a. the terminal growth rate will be 10.40%.
The Intrinsic value is $98.63 billion terminal growth rate will be 10.40%. The Intrinsic value is $97.51 billion if Rio Tinto's actual beta is 1.03 and the Terminal value is $174.56 billion.
a. The terminal growth rate is 10.40%.
The three-stage growth model can be calculated by the following formula:
Intrinsic value = (F1 / (1 + r)^1) + (F2 / (1 + r)^2) + (F3 / (1 + r)^3) + (PV of terminal value)
Terminal value = FCF3 * (1 + g) / (r - g)
g = Terminal growth rate
Let us assume that the free cash flow for Rio Tinto for the next three years is $8 billion, $10 billion, and $12 billion. The discount rate is 8%.
Terminal value = $12 billion * (1 + 10.40%) / (8% - 10.40%)
Terminal value = -$223.53 billion
PV of terminal value = -$223.53 billion / (1 + 8%)^3
PV of terminal value = -$167.05 billion
Intrinsic value = ($8 billion / (1 + 8%)^1) + ($10 billion / (1 + 8%)^2) + ($12 billion / (1 + 8%)^3) + (-$167.05 billion)
Intrinsic value = $98.63 billion
b. The following formula is used to calculate the required rate of return for Rio Tinto using the CAPM is,
r = Rf + β x (Rm - Rf)
Let us assume that the Expected market return is 11.30%
r = 2% + 1.03 * (11.30% - 2%)
r = 11.49%
Terminal value = $12 billion * (1 + 10.40%) / (11.49% - 10.40%)
Terminal value = $251.81 billion
PV of terminal value = $251.81 billion / (1 + 11.49%)^3
PV of terminal value = $168.61 billion
Intrinsic value = ($8 billion / (1 + 11.49%)^1) + ($10 billion / (1 + 11.49%)^2) + ($12 billion / (1 + 11.49%)^3) + $168.61 billion
Intrinsic value = $97.51 billion
c. The intrinsic value of Rio Tinto can be calculated using the same free cash flow projections.
Terminal value = $12 billion * (1 + 10.40%) / (8.30% - 10.40%)
Terminal value = $174.56 billion
Therefore we can conclude that the Intrinsic value is $98.63 billion terminal growth rate will be 10.40%. The Intrinsic value is $97.51 billion if Rio Tinto's actual beta is 1.03 and the Terminal value is $174.56 billion.
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The complete question is-
calculate the intrinsic value of Rio Tinto in each of the following scenarios by using the three-stage growth model of spreadsheet 18.1. treat each scenario independently.
a. the terminal growth rate will be 10.40%.
b. Rio Tinto's actual beta is 1.03
c. The market risk premium is 9.30%
What do most business people think is the primary purpose of business?
A. To fix the problems of society
B. To invest all profits back into the business
C. To protect private property
D. To generate wealth
The most business people think generating wealth is the primary purpose of business. Therefore, option D is the correct option.
What is business?Businesses are economic activities. The activity of the business is performed by the people either in order to make money or to make simply a living. The activity of the business is performed by manufacturing goods, producing services, buying, and selling.
The major purpose of business is to earn profits. However, some businesses are in social service as well, they produce goods and services for the betterment of the society and the environment. Also, corporate social responsibility, which is paid by the business to the government helps in many ways.
The majority of businesspeople believe that making wealth is the main goal of their industry. As a result, choice D is the best one.
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Trudy’s monthly expenses are outlined in the chart below. Trudy’s job pays her $36,000 annually. Determine Trudy’s DTI (debt-to-income) ratio. Trudy's Debt and Income Income: $36,000 (annually) Rent: $695 (monthly) Car Payment $265 (monthly) Student Loan $200 (monthly) Credit Cards $160 (monthly) a. 28% b. 35% c. 37% d. 44% Please select the best answer from the choices provided A B C D
Answer:
d. 44%
Explanation:
Calculation to determine what DTI ratio is
First step is to calculate the Debt
Using this formula
Debt = (Rent expense + Carr payment + Loan + Credit card payment) × Number of months in a year
Let plug in the formula
Debt =[($695 + $265 + $200 $160) × 12 months]
Debt= $1,320 × 12 months
Debt = $15,840
Now let calculate DTI ratio using this formula
Using this formula
Debt to income ratio = (Debt) ÷ (Income) × 100
Let plug in the formula
DTI ratio=[ ($15,840 ÷ $36,000) × 100]
DTI ratio=0.44*100
DTI ratio= 44%
Therefore DTI ratio is 44%
Answer:
I found the missing data:
Monthly expenses:
rent is $695
car payment is $265
student loan's $200
credit cards $160
695 + 265 + 200 + 160 = 1,320
1,320 * 12 months = 15,840
Debt-to-Income ratio = 15,840 / 36,000
Debt-to-Income ratio = 0.44
Trudy's DTI ratio is d. 44%
Explanation:
All credit to BlueSky06 for this answer.
What happens if you still have a balance on your credit card AFTER the company starts charging you interest?
A: The bank will make your interest payments for you
B: The bank will extend the 0% APR so you don't pay interest
C: The bank will offer you a 0% so they make no money off you
D: The bank will make money from the interest fees you pay
1. Shira is trying to decide between getting a debit card, a prepaid debit card, and a credit card. Which statement is true?
Shira is considering acquiring a debit card, it's true.
What distinguishes prepaid cards from debit or credit cards?
Debit cards are payment cards that are linked to a bank account, and as you make transactions, they take money from that account. On the other hand, prepaid cards are not associated with a bank account. Instead, you directly load money into the card. Prepaid cards are safer than cash, easier to use and reload, and a good substitute for using regular credit or debit cards. They also provide consumers with a host of other advantages. a lower chance of overspending. Compared to credit cards, prepaid cards have a lower risk of overspending.
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Land is different from other tangible assets in that its utility is not diminished by its use. This statement is.
Land is different from other tangible assets in that its utility is not diminished by its use. This statement is True.
What are tangible assets?A tangible asset serves as an asset which posses a finite monetary value and usually a physical form.
It should be noted that this asset is one that posses a physical and measurable, such as land, however, the difference that exist between the other tangible assets as well as land is that the utility is not diminished by its use.
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Complete Question;
Land is different from other tangible assets in that its utility is not diminished by its use. This statement is.
Which of the following is not an example of professional behavior
?
a fixed-price contract is useful and appropriate when
see the income and benefits information for a wage earner in an antipoverty program using a phased-out approach to government support in the table below. as you can see, the amount of guaranteed income is $18,000, however, the total income received is greater than the guaranteed amount in all cases where more than zero hours are worked. why is the government still subsidizing the worker's income even though the worker is now earning an income?
government continues subsidizing the worker's income even though they are earning an income to encourage employment, promote self-sufficiency, and create a gradual transition away from reliance on government support.
In an antipoverty program using a phased-out approach, the government provides support to low-income wage earners by supplementing their earned income with additional benefits. The aim is to encourage individuals to work more hours and gradually reduce their reliance on government support.In this case, the guaranteed income is $18,000. As a wage earner works more hours, their earned income increases. However, since the program uses a phased-out approach, the government does not immediately eliminate all benefits once the wage earner starts earning an income. Instead, the government gradually reduces the amount of support it provides, allowing the worker's total income to remain higher than the guaranteed amount in cases where more than zero hours are worked.This phased-out approach serves two purposes: First, it provides an incentive for workers to seek employment and work more hours, as their total income increases with more hours worked. Second, it helps to ensure a smoother transition for workers moving towards self-sufficiency and reduces the risk of them falling back into poverty.
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money received from tickets sold for the taylor swift concert is recorded as net income on the concert promoter's income statement
The statement "money received from tickets sold for the Taylor Swift concert is recorded as net income on the concert promoter's income statement" is not accurate.
Money received from tickets sold for the Taylor Swift concert represents the concert promoter's revenue, not net income. Net income is the difference between revenue and expenses. The concert promoter's income statement would include all revenues generated from the Taylor Swift concert, as well as all expenses incurred in putting on the concert, such as venue rental fees, marketing and advertising costs, and performer fees.
The net income or loss from the concert would be calculated as total revenue minus total expenses, and would be reported on the concert promoter's income statement as a separate line item.
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How can you get your money back if you send a p2p payment to the wrong person?.
When a payment is sent to the wrong person using p2p, the money cannot be gotten back since it is equivalent to giving money to a wrong account. However, the person can lay a complaint to the customer service to take action.
What is P2P Payment?P2P payment is a system of payment where money is sent to another member of the crypto community in exchange for a coin to be sent to the individual's wallet. It is equivalent to giving someone cash.
When a user mistakenly sends money to the wrong person, the money cannot be gotten back. But if the sender has the details of the wrong receiver, an appeal can be made for the money to be reversed. However, if this is not the case, then the money would have to be forfeited.
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what is the present value of $720 payment that will happen for the next 12 years the first payment will happen in year 1 and the discount rate is 6%
Present value is the current worth of future cash flows or payments, considering the time value of money. It calculates the value of future amounts in today's terms by discounting them.
To calculate the present value of a future payment, you can use the present value formula. The formula is:
PV = PMT / (1 + r)^n
Where PV is the present value, PMT is the payment amount, r is the discount rate, and n is the number of years.
In this case, the payment amount is $720, the discount rate is 6%, and the number of years is 12. Plugging these values into the formula, we get:
PV = $720 / (1 + 0.06)^12
Calculating this, the present value of the $720 payment is approximately $7,093.69.
To summarize, the present value of a $720 payment that will occur for the next 12 years, with the first payment happening in year 1 and a discount rate of 6%, is approximately $7,093.69.
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The purpose of marketing is to track every financial transaction within a company—from a few cents expenditure to a multimillion-dollar purchase, from salaries and benefits to the sale of every item. True or false?.
The purpose of marketing is to track every financial transaction within a company from a few cents expenditure to a multimillion-dollar purchase. This statement is False.
The purpose of marketing is not to track every purchase or any financial transaction in a company. Marketing in a company refers to promoting of the product or service the company provides. They identify customer needs and create value for customers.
This does not relate to the tracking of every financial transaction. It falls under the category of financial management. The market is the main source of growth of revenue and increase in company profits.
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What is one benefit to working collaboratively on a team?.
Answer:
Each person gets to contribute in their own way.
What role does competition play in business and global trade?
Answer:
Its always a competition
Explanation:
People use to complete on how the world gets and receives items same in business, companies compeate all the time trying to get the most money, visitors, and promotions.
A special type of goal that acts as a stepping stone for other goals is called
an inner-term goal
a mid-term goal
a part-term goal
a short-term goal
A special type of goal that acts as a stepping stone for other goals is called short-term goal
A unique kind of shorter-term goal is an enabling goal. It is composed in order to advance a longer-term objective. Enabling goals serve as stepping stones that allow us to track our development toward longer-term objectives.
Even while short-term objectives aren't always easy to achieve, they're nevertheless crucial steps in the right direction. It is preferable to further divide them into weekly or monthly stepping stone goals when organizing these. This will lay the groundwork for achieving your goals.
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Answer: short-term goal
Explanation: I hope this helps you
Pablo gets his dog’s hair cut every month. He pays $10 a cut, once a month. The salon is offering a new sale. The sale offers 1 cut per month, for 3 months for $25. Should Pablo get this new sale price?
Answer:
Yes , Pablo should get the new sale price
Explanation:
Before the new offer, Pablo spends a total of $30 for three months.
( $10 x 3 months).
With the new offer, It will cost Pablo $25 in hair cuts for three months.
The new price is cheaper by $5.
Pablo will save $5 with the new sale price.
HELP PLEASE!!!
1. The Building & Construction encompasses both hands-on vocations and conceptual high-end careers.
True
False
2.
What is the minimum education needed to start a career as a Cabinet maker?
A college diploma in cabinet making
An Associates degree in cabinet making
A Ph.D. in woodworking is required
Only vocational training is needed to start a career as a Cabinetmaker
3. A majority of the careers that require more education also tend to pay a higher salary.
True
False
4. Many careers require some education beyond high school even for entry level positions. The career in Section 3 that is an exception to this is:
Welder
Cabinetmaker
Electrician
Set Decorator
5. The career that encourages obtaining an APTI or CAT certification is
HVAC Installation and Maintenance
Air Pollution Control Manager
Water Quality Specialist
Building Inspector
Answer:
#1 is False
#2 Cabinet makers are not required to have completed formal education related to the trade, but most employers prefer to hire individuals with a minimum of a high school diploma or General Educational Development (GED) credential.
#3 True
Explanation:
Which statement is true about the ability of minors to enter into contracts?
A. A minor may enter into a contract only if the minor has an adult co-signer.
B. A minor may enter into a contract but must ratify it within one year of the date of the contract.
C. A minor cannot legally enter into contracts.
D. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.
The true statement about the ability of minors to enter into contracts is option D. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.
However, since minors are not legally considered adults, they have a special status that allows them to void or cancel contracts they have entered into.
This is due to the legal concept of "capacity to contract," which refers to an individual's ability to enter into legally binding agreements.
Minors do not have the full capacity to contract because they lack the maturity and experience necessary to make informed decisions about their legal rights and responsibilities.
Therefore, any contract entered into by a minor is considered voidable, meaning that the minor has the option to cancel the contract and be released from any obligations under it.
However, if the minor decides to affirm or continue with the contract after reaching the age of majority, the contract becomes legally binding and enforceable.
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1. Buyers, sellers, and producers all have someone else they are competing with for economic benefits. This is known as:
O competition
O monopoly
O collusid
O cartels
Answer:monopoly
Explanation:
A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are also exposed to risk. Portfolio risk refers to the possibility that an investment portfolio will not generate the investor's expected rate of return. Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio.
To analyze portfolio risk and return identify the financial assets and securities in the portfolio, determine the weights of each asset, calculate the expected returns of each asset, calculate the portfolio's expected return, estimate the risk (standard deviation) of each asset, and calculate the portfolio's overall risk.
A portfolio is a collection of financial assets and securities that individuals and institutions invest in, and it is subject to risk just like stand-alone assets and securities. Portfolio risk analysis is an important part of the field of finance because it involves analyzing the possibility that the portfolio will not generate the expected rate of return.
To analyze portfolio risk and return, follow these steps:
1. Identify the financial assets and securities in the portfolio: List all the investments, including stocks, bonds, and other instruments that make up the portfolio.
2. Determine the weights of each asset: Calculate the proportion of each investment in the portfolio, based on its current market value.
3. Calculate the expected returns of each asset: Estimate the potential returns of each investment, based on historical performance or other factors.
4. Calculate the portfolio's expected return: Multiply the expected returns of each asset by their respective weights, and sum up the results.
5. Estimate the risk (standard deviation) of each asset: Measure the variability of each investment's returns, using historical data or other methods.
6. Calculate the portfolio's overall risk: Combine the individual asset risks, considering the correlation between the assets' returns, to determine the total risk of the portfolio.
By following these steps, you can analyze the risk and return of a portfolio, helping you make informed investment decisions and manage your expectations regarding the portfolio's performance.
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