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Aleonysh [2.5K]
3 years ago
5

Aurora Corporation operated without insurance coverage for the first month of 2019. Then, on February 1, 2019, the company paid

the $4,800 premium on a two-year insurance policy with benefits beginning on that date. The company uses the accrual basis. How much insurance expense will be reported on the company's income statement for the year ended December 31, 2019? a) $200 b) $2,200 c) $4.600 d) $4,800
Business
1 answer:
Genrish500 [490]3 years ago
3 0

Answer:

Correct answer is letter B, $2,200

Explanation:

Using accrual basis method, revenue and expenses will be recognized when incurred.

The $4,800 is a 24 months policy, therefore we must compute the insurance expense applicable for the year covering from February 1 to December 31 (11 months)

An adjusting entry to recognize the expire portion of the insurance must be done at the year end in the amount of $2,200.

($4,800 / 24 months = $200 x 11 months = $2,200)

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The benefits of a strategic business plan do not include _____.:
djyliett [7]

Answer:

Early precautionary measures of trouble ahead can not be issued.

Explanation:

Since a strategic strategy maps out a path for the organisation to follow, it will enable it tighten its attention in order to get somewhere. Therefore, strategic preparation will help the organisation create the best priorities and strategies and help others concentrate their energies on achieving them.

8 0
3 years ago
Define ATS and describe its use.. Why would large companies<br> use an ATS ?
elena55 [62]

Answer:

An applicant tracking system (ATS) is a human resources software that acts as a database for job applicants.

7 0
2 years ago
An affiliate of an issuer that holds control stock for five months sells 1,000 shares for a $10,000 profit. How will this transa
Marysya12 [62]

Answer:

The Profit will be given to the insurer after been removed from the affiliate .

Explanation:

Based on the information given this transaction be treated by removing the profit which is the amount of $10,000 from the affiliate which is an affiliate of the insurer and then given the insurer the profit amount of $10,000 which was removed from the affiliate reason been that the control stock was been holds by the affiliate for five months in which it was later sold which means that the control stock was sold before the six month holding period.

Therefore the Profit will be given to the insurer after been removed from the affiliate .

6 0
3 years ago
OptiLux is considering investing in an automated manufacturing system. The system requires an initial investment of $4 million,
Deffense [45]

Answer:

<u>Requirement 1:</u> $257,000 Positive

<u>Requirement 2:</u> IRR is higher than 10%

Explanation:

<u>Requirement 1:</u>

We can use the following formula, to calculate the net present value of the project:

Net Present Value = Annual Cash Inflows * Annuity Factor - Investment

Here

Annual Cash Inflow is $500,000

r is 10%

n is the life of the project which is 20 years

Annuity factor = (1- (1+r)^-n)  / r   =  (1 - (1 + 10%)^-20) / 10%  = 8.514

Investment is $4,000,000

By putting values in the above equation, we have:

Net Present Value = $500,000 * 8.514 - $4,000,000

NPV = $257,000 Positive

<u>Requirement 2:</u>

Internal rate of return gives the required rate at which NPV is zero.

Since NPV is positive at 10%, IRR will be higher than 10%.

Always remember that, increase in the discount rate decreases the NPV and vice versa.

5 0
3 years ago
A strategic partnership with a supplier: _____________
Y_Kistochka [10]

When suppliers are utilized more as “strategic partners” and simply suppliers of a product or service is for progressive purpose. Hence, it is the ultimate object, or the end goal, that a company should have with every supplier.

<h3>Strategic partnership with a supplier</h3>

A strategic partnership program is an initiative that aims to transform the relationships of your most strategic suppliers into true strategic partners.

The company activates all of the resources that a supplier may have, including historical knowledge, experience and even data.

Therefore, the correct answer is option B.

learn more about Strategic partnership with a supplier: brainly.com/question/4467038

7 0
2 years ago
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