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4 years ago

Which of the following funds of a governmental unit uses the same basis of accounting as an enterprise fund?

Business

1 answer:

ycow [4]4 years ago

3 0

Answer:

The correct answer is a. Special revenue.

Explanation:

A special revenue fund is an account established by a government to raise money that must be used for a specific project. Special income funds provide an extra level of responsibility and transparency to taxpayers that their taxes will be used for a specific purpose.

Example: A city could establish a special income fund to pay the costs associated with stormwater management. The money from this fund could only be used for stormwater management expenses, such as street sweeping, sewer and ditch cleaning, system maintenance and a public awareness campaign. The city would have to publicly report where it raised the money from the special income fund and how it spent the budget of the special income fund.

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Jonas is a 60% owner of Ard, an S corporation. At the beginning of the year, his stock basis is zero. Jonas's basis in a $33,200

olya-2409 [2.1K]

Answer:

Capital gain $24,900

Explanation:

Jonas's Stock basis $33,200

Less $8,300

Capital gain $24,900

$24,900 cash distribution - Net share of Ard's taxable income $16,600= $8,300

Therefore Jonas's recognized capital gain

of $24,900

6 0

3 years ago

The laissez faire model is inspired by the work of which economic philosopher?

Vitek1552 [10]

Laissez faire model was inspired by John Stuart Mill's book "Principles of Political Economy" (1848). This model states that the government should not be heavily involved in the market, and should have a hands off approach.

I hope this helped! :)

3 0

3 years ago

Perez Corporation’s computer services department assists two operating departments in using the company’s information system eff

ollegr [7]

Answer:

Production department $440,000

Sales department $143,000

Explanation:

The allocation of the total cost to the operating departments is proportional to the number of employees. In other words, as the number of employees increases, so does the allocated cost and vice versa.

Hence,

Cost allocated to the production department

= 40/(40 + 13) × $583,000

= 40/53 × $583,000

= $440,000

Cost allocated to the sales department

= 13/(40 + 13) × $583,000

= 13/53 × $583,000

= $143,000

3 0

3 years ago

Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and fac

Nezavi [6.7K]

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

In part a, we need to find the following 3 requirements:

1. Direct Materials Price Variance

2. Direct Materials Quantity Variance

3. Total Direct Materials Cost Variance

Direct Materials Price Variance:

It can be calculated by using the following formula:

DMPV = AQ multiplied by (AP minus the SP)

Where,

DMPV = Direct Materials Price Variance

AQ = Actual Quantity

AP = Actual Price

SP = Standard Price

We do have all the data, so just plug in the values into the above equation to get the DMPV.

AQ = 101,000

AP = 6.50 USD

SP = 6.40 USD

So,

DMPV = 101,000 ( 6.50 - 6.40)

DMPV = 10,100 USD

Direct Materials Quantity Variance:

DMQV = SP ( AQ - SQ )

Where,

DMQV = Direct Materials Quantity Variance = ?

SP = Standard Price = 6.40 USD

AQ = Actual Quantity = 101,000

SQ = Standard Quantity = 100,000

Plugging in the values:

DMQV = 6.40 ( 101,000 - 100,000)

DMQV = 6400 USD

Total Direct Materials Cost Variance:

DMCV = SMC - AMC

Where,

DMCV = Direct Materials Cost Variance = ?

SMC = Standard Market Cost = 6.40 USD x 100,000

AMC = Actual market Cost = 6.50 USD x 101,000

DMCV = (6.40 USD x 100,000) - (6.50 USD x 101,000)

DMCV = 640,000 - 656,500

DMCV = 16,500 USD

For part b, we need following particulars:

1. Direct Labor Rate Variance (DLRV)

2. Direct Labor Time Variance (DLTV)

3. Direct Labor Cost Variance (DLCV)

Direct Labor Rate Variance (DLRV) :

DLRV = (ADLR - SDLR) x ADLH

Where,

ADLR = Actual Direct Labor Rate = 15.40 USD

SDLR = Standard Direct Labor Rate = 15.75 USD

ADLH = Actual Direct Labor Hour = 2000

So,

DLRV = (ADLR - SDLR) x ADLH

DLRV = (15.40 USD - 15.75 USD ) x 2000

DLRV = 700 USD

Direct Labor Time Variance (DLTV):

DLTV = ( ADLH - SDLH ) x SDLR

SDLH = Standard Direct Labor Hour = 2080

DLTV = ( 2000 - 2080 ) x 15.75 USD

DLTV = 1260 USD

Direct Labor Cost Variance (DLCV)

DLCV = SDLC - ADLC

SDLC = Standard Direct Labor Cost

ADLC = Actual Direct Labor Cost

DLCV = (1540 x 2000) - (15.75 x 2080)

DLCV = 1960 USD

For Part c, we need following:

1. variable factory overhead controllable variance (VFOCV)

2. fixed factory overhead volume variance (FFOVV)

3. Total factory overhead cost variance (TFOCV)

variable factory overhead controllable variance (VFOCV):

VFOCV = AFO - B

Where,

AFO = Actual Factory Overhead = 8200

B = Budgeted Allowance Based on Standard Hours Allowed = 4160x0.5x4

B = 8320 USD

VFOCV = 8200 - 8320

VFOCV = 120 USD

fixed factory overhead volume variance (FFOVV) :

FFOVV = (S - BH ) x SOR

Where,

S = Standard Hours for actual output = 4160 x 0.5

BH = Budgeted Hours = 2080

SOR = Standard Overhead Rate = 6 USD

FFOVV = (4160 x 0.5 - 2080) x 6

FFOVV = 0 USD

Total factory overhead cost variance (TFOCV):

TFOCV = AFO - SO

Where,

AFO = Actual Factory Overhead = 20,200

SO = Standard Overhead = 2080 x 10

TFOCV = 20,200 - ( 2080 x 10 )

TFOCV = 600 USD

7 0

3 years ago

The return for a portfolio consisting of n securities will be based on the return for each of the securities as well as the prop

andrew11 [14]

Answer:

There are some other ways to act scenario analysis. The standard method is to decide the standard deviation of regular or monthly safety returns and so calculate what amount is required for this portfolio if each security yields returns that exist two or three standard deviations above and below the average performance. This means the analyst may get a fair amount of certainty considering the difference in the value of the portfolio within a given period, by simulating these extremes. Scenarios being thought may refer to one single variable, e.g., the relative success or failure of the current product launching, or the combination of elements, e.g., those results of the product launch combined with possible changes in the activities of competitor businesses. The purpose is to examine the effects of the more extreme results to define an investment strategy.

4 0

3 years ago