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3 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]3 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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Bottle Top, Inc. recently announced they will pay their first annual dividend next year in the amount of $0.75 a share. The divi

Korolek [52]

Answer:

$12.50

Explanation:

Data provided in the question

Annual dividend next year = $0.75

Growth rate = 4%

Required rate of return = 10%

So by considering the above information, the price of the share is

= Next year dividend ÷ (Required rate of return - growth rate)

= $0.75 ÷ (10% - 4%)

= ($0.75) ÷ (6%)

= $12.50

Hence we considered all the information which is given in the question

4 0

3 years ago

If a 20 percent increase in the price of red bull energy drinks results in a decrease in the quantity demanded of 25 percent, th

yanalaym [24]

The correct answer is that the price elasticity of demand is elastic.

Price elasticity occurs when a change in price results in a change in demand. In this example, a 20 percent increase in the price of the drinks resulted in a 25 percent decrease in the demand for the product. Because the price increase resulted in a demand decrease the price is elastic.

4 0

3 years ago

Dombey's "heavy gold watch chain" and "trim blue coat" suggest that A) he is a humble man of the people. B) he once belonged to

Katena32 [7]

The answer would be D. Think of his nice clothing and gold. This shows that this person has a lot of money, showing success.

4 0

3 years ago

Read 2 more answers

g Suppose that if GSI drops the price on the Glucoscan 3000 immediately, it can increase sales over the next year by 30% to 130,

Amanda [17]

Complete Question:

Glucose Scan Incorporated (GSI) currently sells its latest glucose monitor, the Glucoscan 3000, to diabetic patients for $129. GSI is considering lowering the sale price to $99 per unit. The cost of goods sold for each Glucoscan unit is $50, and GSI expects to sell 100,000 units over the next year. The marginal corporate tax rate is 40%. Suppose that if GSI drops the price on the Glucoscan 3000 to $99 immediately, it can increase sales over the next year by 30% to 130,000 units.

Also suppose that for each Glucoscan monitor sold, GSI expects additional sales of $100 per year on glucose testing strips and these strips have a gross profit margin of 75%. These strip sales occur on all monitor sales regardless of the price of the monitor. Including the increase in the sale of testing strips, the incremental impact of this price drop on the firms EBIT is closest to:

Answer:

$720,000

Explanation:

Incremental Earnings Before Interest and Tax Analysis

Details Current price Reduced price

Units Sold 100,000 130,000

Unit sales price 129 99

Sales Revenue $12,900,000 $12,870,000

Cost of Goods sold at $50 5,000,000 $6,500,000

Gross Profit $7,900,000 $6,370,000

G. Profit on Strips sold at $75 $7,500,000 $9,750,000

Total Gross Profit for the year $15,400,000 $16,120,000

The Net benefit of this price change is increase of Earnings before interest and tax by $720,000.

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3 years ago

During the annual fund-raising drive, the Cancer Society raised $900,000 in pledges of financial support for general operations.

Gnoma [55]

Answer:

$ 870,000

Explanation:

Given data:

The funds raised by the cancer society = $ 900,000

The amount that has been collected back = $ 600,000

The amount that is uncollectible = 10% of the remaining amount

i.e 10% of ( $ 900,000 - $ 600,000 ) = $ 30,000

Therefore,

the net amount of revenue the society should recognize during the current year from this pledge drive is calculated as:

= The funds raised by the cancer society - The amount that is uncollectible

= $ 900,000 - $ 30,000

= $ 870,000

4 0

3 years ago