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3 years ago

The adjusting entry to record an accrued expense is: Multiple Choice

Business

1 answer:

kati45 [8]3 years ago

5 0

Answer:

5. Increase an expense; increase a liability.

Explanation:

Accrued expenses are expenses that have been incurred but are yet to be paid for. To record and accrued expense,

Debit Expense account (p/l)

Credit Accrued expense (b/s)

The expense account is usually in debit hence the transaction above increases the balance. The accrued expense account is usually in credit hence the above transaction increases the account balance.

As such, the right option is 5. Increase an expense; increase a liability.

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FarCry Industries, a maker of telecommunications equipment, has 26 million shares of common stock outstanding, 1 million shares

Margaret [11]

Answer:

wP = 114.5 / 514.6 = 0.2225 or 22.25%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,

WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE

Where,

wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market value
rD, rP and rE are the cost of debt, preferred stock and common equity respectively.

To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.

Market Value - Debt = 10000 * 1000 * 1.01 = $10.1 million

Market Value - Preferred stock = 1 * 114.50 = $114.5 million

Market Value - Common equity = 26 * 15 = $390 million

Total MV of capital structure = 10.1 + 114.5 + 390 = $514.6

wP = 114.5 / 514.6 = 0.2225 or 22.25%

3 0

3 years ago

Identify two characteristics of utilitarianism, two characteristics of virtue ethics, and two characteristics of deontology. Wri

givi [52]

Answer:

Explanation:

One claim of unethical practice done by Starbucks is that they do not give a chance for small coffee-shops and try to cease them out by acquairing them or competing aggressively. However in the case of buying the coffeeshops they evaluate the price of the shop generously.

In terms of utilitarianism, the action of buying out small shops through generous offer is considered not unethical, because if Starbucks sets up their business nearby the small shop, it will most likely suffer and by purchasing them it is actually a favor for coffeeshops.

The characteristics of utilitarianism is:

The end result of an action should be the most positive outcome for all the parties concerned

The action that leads to the end result is not as important as the result itself

Even though discussed issue is ethical in temrs of utilitarianism view, it is unethical in terms of deontology. Starbucks is causing the shut down of the local business and also discouraging its growth.

The characteristics of deontological ethics is :

The action is the most important focus of the ethical consideration

The result may not be the best but the entity/person in charge should take an ethical action

The third part is the virtue ethics. As per the virtue ethics, we cannot say that the action is ethical. This is not the only blame that Starbucks faces. They face allegation of exploiting coffee farmers, damaging the environment and mistreating their employees.

The characteristics of virtue ethics is

The moral value of the person/organization is more important than action or the result

Even if the action is unethical or the result is unethical, the moral of the person/company can still be correct.

3 0

3 years ago

A key part of the income-expenditure model is understanding that as gdp (or national income) rises, so does ________. group of a

Alinara [238K]

A key part of the Income-Expenditure model is understanding that as national income (or GDP) rises, so does aggregate expenditure

<h3>What is aggregate expenditure?</h3>

The equilibrium level of real GDP, which may be used to estimate the level of employment in the economy, is determined by the income-expenditure model. The aggregate expenditure schedule is the model's key component (or curve). Recall that total spending is the sum of four components: net exports, government spending, investment spending, and consumer spending.

Understanding that aggregate expenditure increases as national income (or GDP) increases is a critical component of the Income-Expenditure model. In the pages that follow, we'll go over the elements of total expenditure and look at how national income affects them. The total expenditure will then be calculated by adding the four parts collectively.

To learn more about aggregate expenditure from the given link:

brainly.com/question/14895846

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5 0

2 years ago

Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and m

yan [13]

The computation of the break-even point in dollar sales for each product is as follows:

Carvings = $234,400 ($46,880/0.2)

Mementos = $789,400 ($631,520/0.8)

<h3>What is the break-even point?</h3>

The break-even point represents the dollar sales or units at which the entity does not incur any loss or earn any profit.

At the break-even point, the total costs are equal to the total revenue.

<h3>Data and Calculations:</h3>

Carvings Mementos

Sales $ 974,400 $ 974,400

Variable costs 779,520 194,880

Contribution margin 194,880 779,520

CM Ratio 20% 80%

Fixed costs 46,880 631,520

Income $ 148,000 $ 148,000

Break-even point = Fixed costs/CM Ratio

Thus, the break-even points in sales dollars are Carvings, $234,400,, and Mementos, $789,400.

Learn more about the break-even point at brainly.com/question/15281855

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7 0

2 years ago

LO 2.3Which of the following methods of cost estimation relies on only two data points?

denis23 [38]

Answer:

the high-low method

Explanation:

The high-low method -

It is the method used by comparing the total cost of the highest level of activity with the lowest level of activity , is referred to as the high - low method.

This method is used in order to separate the fixed and variable costs for a limited amount of data .

Hence , this method compare the data of two points .

Therefore , the correct option from the given options is the high - low method.

7 0

4 years ago