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3 years ago

Assume the $19,500 Treasury bill, 4% for 15 weeks. Calculate the effective rate of interest.

1 answer:

6 0

The effective interest rate is calculated through the equation,
ieff = (1 + i/r)^r - 1
where ieff is the effective interest, i is the nominal interest, and r is the number of 15 weeks in a year. Every year, there are 52 weeks. Thus, there are 3.467 15-weeks approximately. Substituting this into the equation,
ieff = (1 + 0.04/3.467)^3.467 - 1
ieff = 0.04057
ieff = 4.057%

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Answer:

Correct option (5)

Explanation:

Division of labor refers to dividing each job into smaller task and assigning them to employees. These tasks are assigned to each employee based on their skills and abilities.

It helps in increasing efficiency of employees as well provides ease to production process. Division of labor also reduces production cost to a great extent.

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3 years ago

The following account appears in the ledger prior to recognizing the jobs completed in January:

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Answer:

Following are the solution to this question:

Explanation:

In point a:

Journal Entry :

Account Dr Cr.

Goods completed $\$358,680$

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In point b:

Uncompleted jobs cost:

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3 years ago

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The benefits of portfolio diversification can be obtained if the fund manager adds the stocks which are less than perfectly correlated. In other words, the stocks in a portfolio should have coefficient correlation lesser than 1. The market portfolio is considered to be fully diversified, this is why if the stocks with high correlation with market portfolio is added to our own portfolio, it will approach to the fully diversified portfolio and help in reducing the total risk.

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3 years ago

The following events took place for Digital Vibe Manufacturing Company during March, the first month of its operations as a prod

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Answer:

Explanation:

a. In the income statement, the total revenues and the total expenses are recorded.

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

Before preparing the income statement, first, we have to compute the net loss or net income which is shown below:

= Sales - cost of good sold - selling expenses - administrative expenses

= $875,000 - $525,000 - $125,000 - $80,000

= $145,000

b. The computation of the inventory balances are shown below:

Direct material = Purchased material - used material

= $168,500 - $149,250

= $19,250

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= $600,000 - $525,000

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The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:

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3 years ago

After the issuance of its year 1 financial statements, Serenity Inc. discovered a computational error of $150,000 in the calcula

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Answer: C. $150,000 credit

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The corrections of errors should be treated as the period adjustments before. In this case, the $150,000 overstatement for the cost of goods that was sold in the previous year, will then be credited to the beginning balance of the retained earnings.

Therefore, the correct option is C.

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3 years ago