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4 years ago

What are the key revenue cycle accounts for ford? what accounts involve critical accounting estimates?

1 answer:

5 0

The key revenue accounts that are usually included in the cycle can help know more about business’ income moves through the company's accounting system. These are:

-Cash

-Sales

-Accounts Receivable

-A/R Subsidiary Ledger

-Financial Receivable

-Allowances for Doubtful Accounts

-Bad Debt Expense

-Sales Discounts

-Sales Returns and Allowances

-Leases

-Warranty Expense

-Warranty Liability

-Sales Commission Expense

Accounts that Involve Critical Accounting Estimates:

-Warranty and Additional Service Actions

-Automotive Sector

-Financial Service Sector

-Operating Leases-

Allowance for Credit Losses

-Allowance for Doubtful Accounts

-Bad Debt Expense

-Lease

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Real versus Nominal Returns. You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-en

vitfil [10]

Answer:

(i) Rate of return=(2+(38-40))/20=0%

(ii) Rate of return=(2+(40-40))/20=10%

(iii)Rate of return=(2+(42-40))/20=20%

(i) Real rate of return=(1+0%/1+3%)-1=0%

(ii) Real rate of return=(1+10%/1+3%)-1=6.8%

(iii) Real rate of return=(1+20%/1+3%)-1=16.50%

Explanation:

a. The return on any stock can be calculated using the below formula

Return=(Dividend+Capital gain)/Opening value of stock

Where Capital gain=Closing value of stock- opening value of stock.

Using the formula above

(i) Rate of return=(2+(38-40))/20=0%

(ii) Rate of return=(2+(40-40))/20=10%

(iii)Rate of return=(2+(42-40))/20=20%

b. The Real rate of return can be calculated using the below formula:

Real rate of return=(1+ rate of return/1+inflation rate)-1

(i) Real rate of return=(1+0%/1+3%)-1=0%

(ii) Real rate of return=(1+10%/1+3%)-1=6.8%

(iii) Real rate of return=(1+20%/1+3%)-1=16.50%

7 0

4 years ago

Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $410,000 and has a present va

densk [106]

Answer:

Profitability index for Project 1 is 3.17

Profitability index for Project 2 is 1.75

The company should prefer project 1 based on the profitability index.

Explanation:

We calculate the profitability index by dividing the present value of future cash flows by the initial investment. So the profitability index for project 1 will be its future cash flows divided by the initial investment.

1,300,000/410,000=3

Profitability index for Project 1 is 3.17

We will do the same to calculate the profitability index for Project 2

7,000,000/4,000,000=1.75

Profitability index for Project 2 is 1.75

3 0

4 years ago

Corporate bond A has a 6 percent coupon and matures in 3 years. Corporate bond B has a 6 percent coupon and matures in 15 years.

babymother [125]

Answer:

New price of bond A = $986.76, this means that the price decreased by $13.24 or 1.32%.

New price of bond B = $952.99, this means that the price decreased by $47.01 or 4.7%.

Explanation:

Since the current market interest is 6%, then both coupons A and B are sold at face value. If the market interest increases to 6.5%, then

New price of bond A:

PV of face value = $1,000 / (1 + 6.5%)³ = $827.85

PV of coupon payments = $60 x 2.64848 (PV annuity factor, 6.5%, 3 periods) = $158.91

New price of bond A = $986.76, this means that the price decreased by $13.24 or 1.32%.

New price of bond B:

PV of face value = $1,000 / (1 + 6.5%)¹⁵ = $388.83

PV of coupon payments = $60 x 9.40267 (PV annuity factor, 6.5%, 3 periods) = $564.16

New price of bond B = $952.99, this means that the price decreased by $47.01 or 4.7%.

8 0

3 years ago

A closing process under the periodic inventory system, ________. A. Sales Revenue is closed with a credit via the Income Summar

MAXImum [283]

Answer:

The correct answer is D. the ending merchandise inventory balance must be recorded as a debit via the Income Summary account.

Explanation:

In the periodic inventory, purchases of merchandise or raw material are not accounted for in the asset (Inventories), but are accounted for in the purchases account. At the end of the period, with the value accumulated there, the inventory set is made to determine the cost of sale.

Returns of purchased merchandise are also posted to the purchasing account.
Sales are accounted for in the respective income ditch, as is the return on sales.

When the inventory set is made, the physical count is made and the final inventory is determined, this final inventory is accounted for in the asset account (Inventories).

6 0

4 years ago

In the storming stage of team development, team members will have accepted team goals, be operating as a unit, and, as indicated

yKpoI14uk [10]

Answer:

B) False

Explanation:

The storming stage is the second stage of team development. At this stage, the group members should start gaining each other's trust. They are generally more willing to open up and express their views and opinions. Sometimes conflicts can result from different members' opinions, and power struggle occur within the team.

4 0

3 years ago