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3 years ago

Which of the following is exemplified by customers finding a different way to get the product or service?

Business

1 answer:

Ipatiy [6.2K]3 years ago

4 0

Answer:

(A) Customer disloyalty

Explanation:

Customer disloyalty

It is very difficult and require a lot of time to build any customer's loyalty .

The company may feel happy for any positive comment from a customer .

But the disloyalty is not acceptable for any company .

Even the customer disloyalty is not necessarily connected with the rise in the prices , or poor service , or distrust .

Hence , from the question , The correct option is Customer disloyalty .

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Following are selected balance sheet accounts of Larkspur Bros. Corp. at December 31, 2017 and 2016, and the increases or decrea

seropon [69]

Answer:

CATEGORY AMOUNT

a) Payment for purchase PPE Investing $56,000

b) Proceeds from sale of Equipment investing $30,900

c) Cash Dividend paid Operating $0

d) Redemption of Bonds Payable Financing $17,000

Explanation:

Payment for purchase of PPE (76,000-20,000) = $56,000

Cost ( end 2016) 246,200

Accumulated depreciation (167,300)

Carrying Amount 78,900

add Additions 76,000

Minus Depreciation (38,200)

Disposal at C.V (44,800 - 28,500) (16,300)

Cost (end 2017) 277,400

Accumulated Depreciation (177,000)

Carrying Value 100,400

to fill up the missing parts of the note we use bottom up approach

for an example to get additions we say cost at the end plus disposal (cost) - opening

the $20,000 is not cash outflow or cash inflow hence payment = 56000

Proceeds from sale of equipment

gain = selling price - Carrying Value

selling price = 14600+16300 = $30,900

Cash dividend has not been paid hence the increase in dividends payable

Redemption of bond = 45600 +20000 - 48600 = $17,000

8 0

3 years ago

2. With sufficient detail, Discuss how materiality and risk are related and integrated into the audit

Ipatiy [6.2K]

Answer:

Audit Risk and Materiality

These two concepts have an inverse relationship. When the materiality level is set low, the audit risk envisaged by the auditor is on the high side. When the materiality level is set high, the audit risk as perceived by the auditor is on the low side.

But, what exactly is materiality? Materiality refers to the basis that can change or influence the judgment of a reasonable person arising from a quantitative and qualitative omission or misstatement of a fact. And audit risk refers to the risk of material misstatement in the financial statements presented by a company.

Explanation:

The risk of material misstatement in the financial statements is the reason that professional auditors design their audit procedures to reduce the audit risk to an acceptably low level. This implies that auditors gather more audit evidence when the materiality is set to a low level, showing that audit risk has increased and vice versa.

4 0

3 years ago

ACS Industries is considering a project with an initial cost of $6.2 million. The project will produce cash inflows of $1.8 mill

jek_recluse [69]

Answer:

$0.710 million

Explanation:

The net present value of the project is the present value of future cash inflows discounted at the appropriate project discount rate minus the initial investment outlay.

The weighted average cost of capital of the firm is computed using the formula below:

WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)

debt-equity ratio=debt/equity= 0.6(which means debt is 0.6 while equity is 1 since 0.6/1=0.6)

weight of equity=equity/(equity+debt)

weight of equity=1/(1+0.6)=62.50%

weight of debt=debt/(equity+debt)

weight of debt=0.6/(1+0.6)=37.50%

cost of equity=9.4%

after-tax cost of debt=pre-tax cost of debt*(1-tax rate)

pre-tax cost of debt=6.7%

tax rate=35%

after-tax cost of debt=6.7%*(1-35%)=4.36%

WACC=(62.50%*9.4%)+(37.50%*4.36%)

WACC=7.51%

The WACC would be adjusted upward by 2% to reflect the higher level of risk of the new project

project's discount rate=7.51%+2%=9.51%

present value of a future cash flow=future cash flow/(1+discount rate)^n

n is the year in which the future cash flow is expected, it is 1 for year 1 cash flow ,2 for year 2 cash flow, and so on.

NPV=$0.710 million($710,000)

5 0

3 years ago

The economic activities that typically produce an intangible product are referred to as

valentina_108 [34]

Answer:

The correct answer is: services.

Explanation:

Services can be defined as economic activities that produce intangible and non-physical products. For instance, education, health, tourism, hospitality, etc.

Services cannot be stored in inventory. They are produced and consumed at the same time. They cannot be produced in advance to be used in the future.

6 0

3 years ago

I need to write a balance sheet but I am having trouble with the format. can anyone please help?

vichka [17]

Answer & Explanation:
Most balance sheets are arranged according to this equation:

Assets = Liabilities + Shareholders’ Equity

The equation above includes three broad buckets, or categories, of value which must be accounted for:

1. Assets

An asset is anything a company owns which holds some amount of quantifiable value, meaning that it could be liquidated and turned to cash. They are the goods and resources owned by the company.

Assets can be further broken down into current assets and noncurrent assets.

- Current assets are typically what a company expects to convert into cash within a year’s time, such as cash and cash equivalents, prepaid expenses, inventory, marketable securities, and accounts receivable.
- Noncurrent assets are long-term investments that a company does not expect to convert into cash in the short term, such as land, equipment, patents, trademarks, and intellectual property.

2. Liabilities

A liability is anything a company or organization owes to a debtor. This may refer to payroll expenses, rent and utility payments, debt payments, money owed to suppliers, taxes, or bonds payable.

As with assets, liabilities can be classified as either current liabilities or noncurrent liabilities.

- Current liabilities are typically those due within one year, which may include accounts payable and other accrued expenses.
- Noncurrent liabilities are typically those that a company doesn’t expect to repay within one year. They are usually long-term obligations, such as leases, bonds payable, or loans.

3. Shareholders’ Equity

Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they be private or public owners.

Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation:

Shareholders’ Equity = Assets - Liabilities

— Courtesy of Harvard Business School

I hope this helped! :)

6 0

4 years ago