Answer: amount of checks outstanding at the end of the period.
Explanation:
Accounting uses the accrual based system which means that revenue and costs are only recognized when they occur. This means that a company might get revenue in a period but would not have the actual cash in that period to represent that revenue.
The statement of cash flows is created to see the actual amount of cash that a company has instead of revenue or expenses based on the accrual basis of accounting.
That being said, it only includes cash based transactions and will not include checks outstanding at the end of the month.
Answer:
c. $1.58.
Explanation:
The computation of the direct materials cost per equivalent unit is given below:
Equivalent units for material is
= 100% of 193,000 + 100% of 28,000
= 193,000 + 28,000
= 221,000
Equivalent cost for material is
= $94,100 + $254,800
= $348,900
So, the direct materials cost per equivalent unit is
= $348,900 ÷ 221,000
= $1.58
Answer:
A person using a credit card. He uses the credit card to pay for goods and services, then he repays the credit card company at a future date.
One type of installment closed-end credit is a car loan. The car company offers the consumer credit to buy the car. The credit does not extend beyond the sales price of the car. In addition, the person pays the credit in installments over a period of time instead of paying it back in one lump sum.
Explanation:
The type of mutual fund to select depends on the person's goals and attitude towards risks. Generally, mutual funds are a pool of paper assets of different people that is managed by fund managers as they buy stocks from investments in the market.
There can be three types of source of mutual fund: stocks, bonds and balanced fund. Stocks are shares of big companies, say for example, Proctor & Gamble. They sell their shares to the market that is open to all potential investors. When a fund manager buys shares, he becomes a co-owner of the company. Thus, if the profit of the company increases, you are also given with additional dividends. However, the risk is high because if the company goes bankrupt, you lose your money. Bonds are owned by government agencies that are open to the public to borrow their money to be used on projects for the country. This is low risk because the government promises to return the amount of money borrowed plus a fixed interest. Balanced fund is the median of both because fund managers source their mutual funds both on stocks and bonds.
So, if you are aggressive, then stocks are fit for you. If you are conservative, better stick with bonds because there is a guarantee. If you are a mix of both, balanced fund is your option.
Answer:
the client should wait 10 more years until the contract is worth $180,000 since he will earn a slightly higher interest rate
Explanation:
we must determine the effective interest earned by the client if he accepts the company's proposal:
future value = present value x (1 + r)ⁿ
121,000 = 100,000 x (1 + r)⁵
(1 + r)⁵ = 121,000 / 100,000 = 1.21
⁵√(1 + r)⁵ = ⁵√1.21
1 + r = 1.0389
r = 0.0389 = 3.89%
if the client waits 10 more years until he is able to annuitize the account, he should earn:
180,000 = 100,000 x (1 + r)¹⁵
(1 + r)¹⁵ = 180,000 / 100,000 = 1.80
¹⁵√(1 + r)¹⁵ = ¹⁵√1.80
1 + r = 1.03996
r = 0.03996 = 4%
