Answers
Answer:
Overdrawn
Insufficient funds
Explanation:
An account that doesn't have sufficient funds to cover all charges made against it, has special terms which bankers use to describe it. They include:
i. Insufficient funds: this refers to situation where the amount in the account is less than amount drawn on it or charges made against it.
ii. Account overdrawn: this doesn't have a special bank permit to withdraw more than what is in the account.
Related Questions
All of you have merchants in the area where you live. You may often shop there or perhaps some of you may have even worked in a merchant shop. For this discussion, think of a popular merchant near you. What type of merchandise do they stock
Answers
Answer:
A confectionery
Explanation:
Remember, merchandise is the products up for sale in any business.
This shop deals with all products that involves baking, they have operated at our locality for years now and I have come to love going shopping there.
Their merchandise includes; bread, pastries, baking utensils and other related items..
Assume a competitive firm faces a market price of $60, a cost curve of C = 0.004q^3 + 30q + 1000, and a marginal cost of curve of: MC = 0.009q^2 + 25.
a. The firm's profit maximizing output level (to the nearest tenth) is ___units, and the profit (to the nearest penny) at this output level is $____.
b. This will cause the market supply to (shift right/shift left). This will continue until the price is equal to the minimum average cost of $____.
Answers
Answer:
a) q = $62.36
b) As the profit level is NEGATIVE ( π = - 99.21 ), this will cause the market supply to shift left. This will continue until the price is equal to the minimum average cost of $60.
Explanation:
Given that; the market price P = $60
The cost curve is C = 0.004q³ + 30q + 1000
The marginal cost of curve of MC = 0.009q² + 25
We know that the condition for the profit maximizing level of output is MC=P
∴ 0.009q² + 25 = 60
0.009q² = 35
q² = 35 / 0.009
q² = 3888.88888
q = √3888.88888
q = $62.36
Now we calculate profit at the equilibrium output
π = TR -TC
π = ( P × Q ) - TC
we know TC = 0.004q³ + 30q + 1000
now we substitute
so π = ( 60 × 62.36 ) - { 0.004(62.36)³ + 30(62.36) + 1000
= 3741.6 - ( 970.01 + 1870.8 + 1000
= 3741.6 - 3840.81
π = - 99.21
As the profit level is NEGATIVE, the supply curve shifts left
Average cost is the cost per unit of output.
Average Cost = TC / q
Average Cost = (0.004q³ + 30q + 1000) / q
Average Cost = 0.004q² + 30 + 1000/q
Now equate the derivative of AC with zero
i.e ΔAC/Δq = 0
Δ/Δd{ 0.004q² + 30 + 1000/q } = 0
0.008q - 1000/q² = 0
0.008q = 1000/q²
0.008q³ = 1000
q³ = 125000
q = ∛125000
q = 50
Average cost at this point will be
AC = 0.004q² + 30 + 1000/q
= 0.004 (50)² + 30 + 1000/50
= 10 + 30 + 20
= $60
As the profit level is NEGATIVE ( π = - 99.21 ), this will cause the market supply to shift left. This will continue until the price is equal to the minimum average cost of $60.
has acquired several other companies. Assume that Patton purchased Kate for $ 6 comma 000 comma 000 cash. The book value of Kate's assets is $ 15 comma 000 comma 000 (market value, $ 17 comma 000 comma 000 ), and it has liabilities of $ 13 comma 000 comma 000 (market value, $ 13 comma 000 comma 000 ). Requirements 1. Compute the cost of goodwill purchased by Patton . 2. Record the purchase of Kate by Patton .
Answers
Answer and Explanation:
1. The amount of goodwill is shown below:
= Purchase price - the market value of net assets
= $6,000,000 - ($17,000,000 + $13,000,000)
= $2,000,000
2. Now the journal entry for purchase is
Assets $17,000,000
Goodwill $2,000,000
To Liabilities $13,000,000
To Cash $6,000,000
(Being the purchase is recorded)
For recording this we debited the assets and goodwill as it increased the assets and credited the liabilities and cash as it also increased the liabilities and decreased the assets
Suppose that you open your own business and earn an accounting profit of $35,000 per year. When you started your business, you left a job that paid you a $30,000 salary annually. Also, suppose that you invested $70,000 of your own funds to start up your business. If the normal rate of return on capital is 10 percent, your economic profit is
Answers
Answer:
$-2000
Explanation:
Economic profit = accounting profit - opportunity cost
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
if i hadn't quit my job, i would be earning $30,000. so, $30,000 is one of my opportunity costs.
also, if i hadn't started my business, i would be earning 0.1 x $70,000 = $7,000 on my capital. this is my second opportunity cost.
total opportunity cost = $7,000 + $30,000 = $37,000
economic profit = $35,000 - $37,000 = $-2000
Assume a nominal interest rate on one-year US Treasury Bills of 4.60% and a real rate of interest of 2.50%. Using the Fisher Effect Equation, what is the approximate expected rate of inflation in the US over the next year
Answers
Answer:
2.0488%
Explanation:
Fisher Effect Equation = ( 1 + nominal rate ) = ( 1 + inflation rate ) x (1 + real rate)
= ( 1 + 0.046) = ( 1 + inflation rate ) x (1 + 0.025)
( 1 + inflation rate ) = ( 1 + 0.046) / (1 + 0.025)
( 1 + inflation rate ) = 1.020488
Inflation rate = 1.020488 - 1 = 0.020488 = 2.0488%
Parton and Sons is a law firm that uses activity-based costing. Classify these activities as value-added or non-value-added:
a. Taking appointments
b. Reception
c. Meeting with clients
d. Bookkeeping
e. Court time
f. Meeting with opposing attorneys
g. Billing
h. Advertising
Answers
Answer:
The answer is:
A - Non-value-added
B - Non-value-added
C- Value-added
D- Non-value-added
E - Value-added
F - Value-added
G - Non-value-added
H- Non-value-added
Explanation:
In activity-based costing, Non-value-added activities are activities that add costs to ones product without enhancing the value while value-added is a cost that enhance the quality of a product or service.
A - Non-value-added
B - Non-value-added
C- Value-added
D- Non-value-added
E - Value-added
F - Value-added
G - Non-value-added
H- Non-value-added
Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $500,000, and direct labor costs to be $250,000. Actual overhead costs for the year totaled $520,000, and actual direct labor costs totaled $280,000. At year-end, the balance in the Factory Overhead account is a:
Answers
Answer:
Under/over applied overhead= $40,000 overallocated
Explanation:
Giving the following information:
Estimated overhead= $500,000
Estimated direct labor costs= $250,000
Actual overhead costs for the year totaled $520,000, and actual direct labor costs totaled $280,000.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 500,000/250,000
Predetermined manufacturing overhead rate= $2 per direct labor cost
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2*280,000= $560,000
Finally, we can determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 520,000 - 560,000= $40,000 overallocated
Jacobsen Corporation prepares its financial statements applying U.S. GAAP. During its 2016 fiscal year, the company reported before-tax income of $621,000. This amount does not include the following two items, both of which are considered to be material in amount: Unusual gain $201,000 Loss on discontinued operations (301,000) The company's income tax rate is 30%. In its 2016 income statement, Jacobsen would report income from continuing operations of:
Answers
Answer:
Jacobsen Corporation
Income from continuing operations of $621,000 will be reported.
Explanation:
The income from continuing operations is the same thing as the operating income. It is the pre-tax income that is reported on Jacobsen Corporation's income statement for the year ended December 31, 2016. The tax rate of 30% is applied on this figure to obtain the income tax expense for the year. But, for Jacobsen that has other unusual items, these are taken into consideration before the income tax is imputed to obtain the after-tax income.
Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared Year 1 $ 0 Year 2 $ 6,000 Year 3 $ 32,000 The amount of dividends paid to preferred and common shareholders in Year 2 is:
Answers
Answer:
In Year 2 Preferred Stockholders were paid $6,000 , whilst Common Stockholders were paid $0.
Explanation:
The Preference Shareholders have preference over the Common Stockholders when it comes to payments of dividends.
Also when the Preference Stocks are cumulative, it means that any dividends in arrears need to be honored before the next dividend distribution.
Preference Stock Dividend is the same per year and is calculated as follows :
Preference Stock Dividend = 7,000 × $10 × 5%
= $3,500
Summary of Dividends Paid are as follows :
Year 1
Preference Stock Dividend Paid = $0
Common Stock Dividend Paid = $0
Preference Stock Dividend in Arrears = $3,500
Year 2
Preference Stock Dividend in Arrears for year 1 paid = $3,500
Preference Stock Dividend Paid for year 2 = $ 2,500
Preference Stock Dividend in Arrears = $1,000
Common Stock Dividend Paid = $0
Conclusion :
In Year 2 Preferred Stockholders were paid $6,000 whilst Common Stockholders were paid nothing.
Calvert Corporation expects an EBIT of $25,300 every year forever. The company currently has no debt, and its cost of equity is 15.3 percent. The company can borrow at 10.1 percent and the corporate tax rate is 25 percent. a. What is the current value of the company
Answers
Answer:
Value of the company = $124,019.61
Explanation:
The value of then firm is the present value of its expected future cash inflow discounted at its required rate of return.
In this case, the earnings available to ordinary shareholders becomes the annual cash inflow while the appropriate discount rate is the cost of equity.
The absence of debt in the company's capital structure implies that the cost of equity would be the appropriate discount rate.
And the value of the company would be determined as follows
Value of the company = Earnings after tax/Cost of equity
Earnings after tax = EBIT × (1-Tax rate)= 25,300×(1-0.25)=18,975
Cost of equity = 15.3%
Value of the company = 18975 /0.153= 124,019.6078
Value of the company = $124,019.61
Sheffield Corp. had net credit sales of $13011000 and cost of goods sold of $9333000 for the year. The average inventory for the year amounted to $1442000. The average days in inventory during the year was approximately:______
Answers
Answer:
56.2
Explanation:
Inventory turnover = Cost of goods sold / Average inventory
= $9,333,000 / $1,442,000
= 6.5 times
Average days in inventory during the year = 365 / 6.5
= 56.2 days
In a "perfect world" capital market, how important is a firm's decision to pay dividends versus repurchase shares? Under what conditions would you have a tax preference for share repurchase rather than dividends? Would managers acting in the interests of long-term shareholders be more likely to repurchase shares if they believed the stock to be either undervalued or overvalued?
Answers
Answer and Explanation:
A business may use its extra funds to return it to the shareholders, by either paying cash dividends to the company's existing shareholders or by buying back its own shares. Dividends are a profit-share. Dividends are paid out of an enterprise's net profit (PAT).
Now
On the other way, by way of equity buyback plans, a company can use its money to repurchase its assets. A buyback would decrease a company's a number of shares outstanding and significantly increase the long-term earnings per share ( EPS), and cash flow per share.
The decision of a corporation to pay a dividend and repurchase shares is significant as it can use such actions to manage the investors' interests and the corporation's interest.
Although dividend payment provides greater stability for a company's shareholders, the buy back of shares presents a greater level for the company concerned.
Dividends offer the shareholders flexibility by allowing them to make use of the allocated income in whatever way they see fit. Secondly, the dividend benefit for the shareholders is assured.
The buy back of shares from the other hand is also more desirable for taxation purposes. Dividends are taxable although no taxes are required in case of share repurchases till the moment in time when the securities will finally be sold.
Managers serving the interests of shareholders, particularly long-term shareholders, are more likely to purchase shares if they think the shares are undervalued, i.e. trading at a price below its intrinsic value.
It is due to the number of shares outstanding decreases as the securities are bought back and therefore the earnings per share ( EPS) and cash flows per share increase.
These enhancements help push share prices in the second hand market. This implies that the stock price in the secondary market is no longer at a point below its intrinsic value.
This initiative would mean that securities are no longer underpriced in the long term, thereby protecting the interests of long-term investors.
If a monopolist in an industry characterized by monopoly features is making economic profit in the short run, which of the following is true for this firm in the long run? (Assume that costs and demand are held constant)
a. The monopolist will be able to sustain economic profits.
b. The monopolist will make normal profit because firms will enter the industry.
c. The monopolist will make normal profit because no firms will enter the industry.
d. The monopolist will make a loss.
Answers
Answer: The monopolist will be able to sustain economic profits
Explanation:
If a monopolist in an industry characterized by monopoly features is making economic profit in the short run, then the monopolist will be able to sustain economic profits.
The economic profit is gotten when the explicit cost and the opportunity costs are both deducted from the revenues generated by a business.
Since there is high barrier to entry and the monopoly is the only firm in the market, then the monopolist will be able to sustain economic profits.
An account becomes uncollectible Group of answer choices when an account receivable is converted into a note receivable when a discount is availed on notes receivable There is no general rule for when an account becomes uncollectible. at the end of the fiscal year
Answers
Answer:
There is no general rule for when an account becomes uncollectible.
Explanation:
An account becomes uncollectible when an account receivable is written-off due to different situations, which means that there is no general rule for when an account becomes uncollectible.
For example, an account can become uncollectible if the debtor becomes unsolvent. It can also become uncollectible if the firm is victim of fraud, or if the firm itself decides to write-off the account due to company policy.
Steve goes to Tri-State University and pays $40,000 in tuition. Steve works a part-time job to pay for his schooling and has an AGI of $17,000. How much is his American Opportunity Credit? Group of answer choices
Answers
Answer:
$2,500
Explanation:
The calculation of American opportunity tax credit is shown below:-
According to the given situation, Steve's part-time job wouldn't come in between his not applying for the credit as the AGI is lower than the applying number.
Therefore, the credit would be 100% of first is
= $2,000 + 25% (Increased)
= $2,500
Which of the following is a characteristic of both the sales approach for service-type warranties and the expense approach for assurance-type warranties?
a. Estimated liability under warranties
b. Warranty expense
c. Unearned warranty revenue
d. Warranty revenue
Answers
Answer: Unearned warranty revenue
Explanation:
Unearned warranty revenue is usually shown as an unearned revenues in the accrued liabilities during the preparation of the balance sheets.
It should be noted that the unearned warranty revenue is a characteristic of both the sales approach for service-type warranties and the expense approach for assurance-type warranties.
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
Answers
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
ANSWER:
Take down his/her suggestions. The first thing is to show respect. Accept thoughts and contributions towards that project. Most times a project "sponsor" is not someone who is a professional in the field or discipline that the project is about.
If your direct supervisor has the idea of increasing the scope of the project, take note of his/her reasons and if they will truly bring the achievement of more departmental goals, then relay the idea of expansion to the project sponsor.
Answer:
At this point, the important thing is to remain calm and in control. Your supervisor, like everyone else, is likely to get confused and blame people for things that are not their fault, or even find fault that does not exist.
In that case, you should wait for him to finish speaking, ask for permission to speak and explain how you did your job and show how your supervisor is wrong about the conclusion he made. This must be done calmly and politely, always maintaining respect.
Explanation:
The exit-voice-loyalty-neglect (EVLN) model Multiple Choice outlines the four consequences of emotional intelligence. is a template for organizing and understanding the consequences of job dissatisfaction. identifies the four ways to manage employee emotions. explains why the psychological contract differs between employees and their employers.
Answers
Answer:
is a template for organizing and understanding the consequences of job dissatisfaction.
Explanation:
From it's name, the EVLN tells us four ways that Employees respond when they are dissatisfied with their job.
E stands for Exit which means going elsewhere to look for other job opportunities, it means leaving the organization or transferring to another unit.
V stands for Voice which means trying to change the situation of things rather than escaping from that dissatisfying situation. It can be constructive or destructive.
L stands for Loyalty such Employees in this category respond to dissatisfaction by waiting patiently for the issue to be solved out with time or by other.
N stands for Neglect which means putting in less work, reducing quality and also acts of absenteeism and lateness.
Watson consulting, llc is a consultancy to consultants. They have bonds which have a face value of $1,000. The bonds carry a 3.5 percent semi-annual coupon, and mature in 10 years. What is the current price of these bonds if the yield to maturity (the going market rate, rd) is 5 percent
Answers
Answer:
The current market price is $ 883.08
Explanation:
The current market price can be ascertained using the pv excel function as follows:
=-pv(rate,nper,pmt,fv)
rate is the semiannual yield to maturity which is 5%/2
nper is the number of semiannual coupons in the bond i.e 10*2=20
pmt is the semiannual coupon=3.5%*1/2*$1000=$17.5
fv is the face value of the bond
=-pv(5%/2,20,17.5,1000)=$ 883.08
Skymont Company wants an ending inventory each month equal to 30% of that month's cost of goods sold. Cost of goods sold for February is projected at $45,000. Ending inventory at the end of January was $12,000. Based on this information, purchases for February would be:
Answers
Answer:
Purchases for February would be: $46,500
Explanation:
Prepare a Purchases Budget to find the Purchases for February.
Purchases Budget for February
Budgeted Cost of Sales $45,000
Add Budgeted Closing Inventory ($45,000 × 30%) $13,500
$58,500
Less Budgeted Opening Inventory ($12,000)
Budgeted Purchases $46,500
Preferred stock is a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.
Answers
Answer:
False
Explanation:
Preference stock is a type of ownership of equity whereas the bond is the form of debt. The preference stock is the stock in which the dividend is fixed and to be paid before paying the common shareholders.
it includes the features like no voting rights, fixed dividend
Therefore the given statement is false
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 9.00 $ 39.00 Variable expenses per unit $ 2.70 $ 14.00 Traceable fixed expenses per year $ 131,000 $ 33,000 Last year the company produced and sold 40,500 units of Weedban and 18,500 units of Greengrow. Its annual common fixed expenses are $101,000. Required: Prepare a contribution format income statement segmented by product lines.
Answers
Answer:
Royal Lawncare Company
Income Statement
Total Weedban Greengrow
Sales revenue $1,086,000 $364,500 $721,500
Variable costs $368,350 $109,350 $259,000
Contribution $717,650 $255,150 $462,500
margin
Traceable fixed $164,000 $131,00 $33,000
costs
Segment margin $553,650 $124,150 $429,500
Common fixed $101,000
costs
Net income $452,650
Accounting for pensions receives more attention in the United States (US) than in other countries. Discuss reasons that would explain why pension accounting has less emphasis in many foreign countries than the US.
Answers
Answer:
I. Lack of a proper pension system
II. Corruption
III. Lack of interest.
Explanation:
I. Lack of a proper pension system: Some countries especially in the developing countries have no proper pension system which makes them not to put good attention to pension accounting
II. Corruption: This is one of the main reasons why pension accounting is given less accounting in many countries of the world, as some leaders usually wants to create room to loot the funds of the pensioners.
III. Lack of adequate interest: Some countries of the world give less focus and emphasis on the plights of pensioners which makes them not to put good effort to their issues or pension accounting.
Brooke and Katie went shopping for cleaning supplies. Brooke chose products from well-known brands. However, Katie compared the price difference between well-known brands and the local store brands. Brooke explained that her mother always used well-known brands and taught her that local store brands just don’t clean as well. Apparently, _____ factors were a major influence on Brooke’s choices.
Answers
Answer:
Social
Explanation:
Social defines the status in a society or in a company and where we are living in the society interacts with the people to enhance our status, skills, etc.
Therefore according to the given situation Brooke and Katie went for purchasing to buy cleaning supplies. Here Katie is comparing the products price with local store while Brooke selects well known brands.
In this scenario Brook makes understand to Katie that local product is not good in comparison to well know brand. So, social factors affects on Brooke choice.
The total payroll of trolley company for the month of october was 960000 of which 180000 represented amounts paid to certain employees in excess of 137000 maximum subject ot social security tax $180,000 of federal income taxes and $18,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. What amount should Trolley record as payroll tax expense?
Answers
Answer:
$68,760
Explanation:
The computation of the payroll expense is shown below:
FICA taxes ($960,000 - $180,000) × (7.65% - 1.45%) $48,360
Medicare ($960,000 × 1.45%) $13,920
State unemployment tax {($960,000 - $600,000) × 1%} $3,600
Federal unemployment tax {($960,000 - $600,000) × 0.80%} $2,880
Total $68,760
If a company wants to predict how much money it can make this coming year, it would benefit from developing a: short-term forecast. consolidated income statement. statement of cash flows. master budget.
Answers
Answer: short-term forecast
Explanation:
The Short-term in business refers to a period a year or less. A Short-term forecast therefore allows for a business to predict its needs and potential receipts within a period of a year or less. Short-term forecasts would include the expenses, revenues, and hence income that a company believes it will receive in the next year or less. The company can therefore be able to predict how much it will make in the coming year using a Short-term forecast.
Suppose you deposit $ cash into your checking account. By how much will the total money supply increase as a result when the required reserve ratio is 0.0?
Answers
Answer:
If the required reserve ratio is 0, that means that the money multiplier will be infinite. I guess the question is incomplete.
I looked for similar questions to fill in the blanks:
If you deposit $2,400 and the required reserve ratio is 0.4, then by how much does the money supply increase?
first we must determine the money multiplier = 1 / required reserve ratio = 1 / 0.4 = 2.5
to determine the total effect on the money supply we just multiply the deposit by the multiplier = $2,400 x 2.5 = $6,000 increase.
"If the regulations for environmental protection were strictly adhered to and industries, cities, and individuals considered the environment crucial for survival and a thriving market, what would be the benefits from this change
Answers
Explanation:
The benefits arising from complying with an environmental protection regulation would be diverse for society, for companies and for the environment as a whole.
It is ideal to recognize the scarcity of natural resources, and knowing how to preserve them as citizens is everyone's duty. Environmental awareness and compliance with regulations would lead to significant changes in quality of life, air, water, decrease the greenhouse effect, decrease respiratory diseases, etc.
For the industry, complying with environmental regulation makes it better positioned in the market, attracts more investors, motivates employees more, reduces unnecessary risks and costs in addition to enhancing the continuous improvement of processes as a whole.
The marketing department of a reputable firm wants to improve strategic decision making, track the actions of other players in the market, and provide early warning of opportunities and threats. Which of the following would help the firm achieve its objectives?
A) Data warehousing
B) strategic planning competitive marketing intelligence
D) customer relationship management
E) ethnographic research
Answers
Answer:
The answer is C. competitive marketing intelligence
Explanation:
Competitive marketing intelligence may be a powerful research-based method employed by a company to collect, analyze, and use information collected on competitors, economic conditions, customers etc to a achieve business's competitive advantage.
The information-gathering analysis process can help a corporation develop its strategy or identify competitive gaps. It identifies threats and opportunities within the business
Economist C says all of the following: Expansionary fiscal policy is needed to raise aggregate demand and remove the economy from a recessionary gap. The choice of fiscal policy measures is between ________________ government spending and a _______________ in taxes. Since I am in favor of bigger government, I choose a(n) _________________ in _________________.
Answers
Answer:
The choice of fiscal policy measures is between ___increased_____________ government spending and a ____decrease___________ in taxes. Since I am in favor of bigger government, I choose a(n) ____increase_____________ in ____governmental spending_____________.
Explanation:
Government employ two fiscal measures to drive the economy toward stability. They are taxation and government expenditure. Depending on the desired outcome and the prevailing circumstances, an increase in taxation reduces the propensity to consume, thus fueling increased savings and investments. Increased government expenditure galvanizes the economy to grow and the increased expenditure acts as a stimulus to economic activities. But fiscal policy measures are not used in isolation. They are complemented by monetary policies by the Federal Reserve.