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3 years ago

12

"at the clearing house, bank x has $300 in checks drawn on bank y and bank y has $200 in checks drawn on bank x. how does the cl

earinghouse settle the accounts."

1 answer:

Gre4nikov [31]3 years ago

8 0

The clearing house settle the accounts by hiring an accountant to do the work.

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After the events of 9/11, a friend suggests to you that the Central Intelligence Agency (CIA) and Federal Bureau of Investigatio

bazaltina [42]

A. Hindsight bias- also known as the knew-it-all-along phenomenon or creeping determinism, refers to the common tendency for people to perceive events that have already occurred as having been more predictable than they actually were before the events took place.

7 0

3 years ago

The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be

ahrayia [7]

Answer:

C. debit cash, credit premium on bonds payable and bonds payable

Explanation:

Since the contract rate is greater than the market rate, the bond is issued at a premium. And, the journal entry is shown below:

Cash A/c Dr XXXXX

To Premium on bonds payable A/c XXXXX

To Bonds payable A/c XXXXX

(Being bond is issued at a premium is recorded)

When the bond is issued at a premium, we debited the cash account and credited the premium on bonds payable and bonds payable account

4 0

2 years ago

Magic City Enterprises manufactures a beautiful bookcase. Listed below are a number of costs incurred. Identify each cost as eit

FrozenT [24]

Answer:

1. Factory Rent = Fixed , Product (Indirect Cost)

2. Advertising = Fixed , Period

3. Packing Supplies for Shipping = Variable, Period

4. Factory Security Guard = Fixed, Product (Indirect Cost)

5. Wages of Employees Who Sand the wood = Variable, Product (Direct Cost)

6. Administrative Assistant in Corporate office = Fixed , Period

7. Paper Towels in the Men's Room in the Factory = Fixed , Product (Indirect Cost)

8. Executive Jet = Fixed, Period

9. Lumber = Variable, Product (Direct Cost)

10. Depreciation on Factory Tools (Straight-Line) = Fixed, Product (Indirect Cost)

Explanation:

Product versus Period Cost.

A product cost is attached to the cost object and is included in the valuation of the cost object.All manufacturing costs are product costs.

Period costs are not attached to the products. Non-manufacturing costs are Period costs.

Fixed versus Variable.

Behavior of costs in relationship with Activity will tell us whether a cost is a Fixed cost or Variable Cost.

Fixed Costs remain the same for any level of activity, whilst variable costs vary in direct proportion to with the level of activity.

Direct versus Indirect.

By observation of the cost object, we are able to identify is a cost is a direct cost or indirect cost.

Direct costs can be easily traced on the cost object. Indirect costs are difficult to trace on the cost object.

4 0

2 years ago

Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no ot

Oduvanchick [21]

Answer:

The complete present value calcuation is below.

The net present value of this project is: $77,930.58 (assuming a value for the sale of the business equal to the purchase price).

Explanation:

For this problem, the first and basic question is:

<em>Prepare a net present value calculation for this project. What is the net present value of this project?</em>

<em />

<h2>Solution</h2>

The net present value is equal to: the present value of the future cash flows less present value of the investements.

<u>1. Present value of the future cash flows:</u>

The discount factor is equal to 1 / [1 + (1 + r)ⁿ]

Where:

r = 5% = 0.05
n = the number of year

Year Cash flow Discount factor Present value

1 $30,000 1/(1 + 0.05) $30,000/1.05 = $28,571.43

2 $30,000 1/(1 + 0.05)² $30,000/(1.05)² = $27,210.88

3 $30,000 1/(1 + 0.05)³ $30,000/(1.05)³ = $25,915.13

4 $30,000 1/(1 + 0.05)⁴ $30,000/(1.05)⁴ = $24,681.07

5 $30,000 1/(1 + 0.05)⁵ $30,000/(1.05)⁵ = $23,505.78

5 $240,000* 1/(1 + 0.05)⁵ $240,000/(1.05)⁵ = $188,046.28

*For the year 5 you must also consider the value of the business, which is unknow. You should have some information about it. Although unrealistic, at this stage we can just assume a value: let's say it is the same purchase price: $240,000. That is what the last line shows:

The discount the value of the value of the business is:

$240,000 / (1.05)⁵ = $188,046.28

The total present value of the future cash flows is the sum of the present values of all the cash flows:

$28,571.43 + $27,210.88 + $25,915.13 + $24,681.07 + $23,505.78 + $188,046.28 = $317,930.58

<u>2. Calculate the net present value:</u>

Net present value =

= Total present value of future cash flows - investment

Net present value = $317,930.58 - $240,000 = $77,930.58

5 0

2 years ago

Strategy implementation can be the most difficult part of the strategic management process. Which of the following is not likely

RUDIKE [14]

Answer:

d) Competition

Explanation:

According to Rajasekar, J. (2014). <em>Factors affecting effective strategy implementation in a service industry</em> Strategic management process key factors are the role of leadership, the role of culture and the role of organizational structure in strategy implimentation.

On the other hand, "the absence of real competition is either not aware of the need to formulate a strategy and implement it (clarity of strategy) or believe there is no need to do so due to the business structure" (p.177)

Reference: Rajasekar, J. (2014). Factors affecting effective strategy implementation in a service industry: A study of electricity distribution companies in the Sultanate of Oman. International Journal of Business and Social Science, 5(9).

3 0

2 years ago