Bondholders are creditors of the issuing corporation. true

.Academic studies suggest that the amount people tip at restaurants is only slightly related to the quality of service, and that

AlexFokin [52]

There are various forms of market failure, though it is commonly defined in economics as a situation where the distribution of goods and service are conducted in an inefficient manner.

In the case illustrated in the question, the form of market failure that is taking place occurs in the nature of the exchange, which is due to bounded rationality. It is defined as condition commonly occurring in individuals where decision-making is based on making a satisfactory solution instead of an optimal one – this leads to irrational behaviors. A good example is the tipping behavior provided in the question.

Thus, the answer to the question is (D) Yes this could be considered a form of market failure. If consumers and markets were rational tips would be based on the quality of service.

3 0

4 years ago

Bob, CPA, has a client with a strong belief that he is correct about an aggressive but creative tax position. Bob thinks otherwi

yKpoI14uk [10]

Answer:

IRS ,AICPA Statements on Standards for Tax Services.

Explanation:

From the question, we are informed about Bob, that has a client with a strong belief that he is correct about an aggressive but creative tax position.

and how Bob files the tax return with disclosure on his client's included.

In the case of agreement on the disclosure of the position, then it should be disclosed to IRS. which is a form of Statements on Standards for Tax Services.they are responsible for quality control as far as tax is concerned.

5 0

3 years ago

At Ava's second birthday, her grandparents wanted to pool their money to buy U.S. Treasury bonds that would ultimately provide $

Lelu [443]

Answer:

They would need to buy $64,068.981 in U.S treasury bonds on Ava's second birthday to ultimately provide $120,000 for college expenses in 16 years.

Explanation:

The initial amount to be invested in order to yield $120,000 after 16 years can be expressed as;

F.V=P.V(1+R)^n

where;

F.V=future value of investment

P.V=present value of investment

R=annual interest rate

n=number of years

In our case;

F.V=$120,000

P.V=unknown

R=4%=4/100=0.04

n=16 years

replacing;

120,000=P.V(1+0.04)^(16)

120,000=P.V(1.04)^16

120,000=1.873 P.V

P.V=120,000/1.873

P.V=$64,068.981

They would need to buy $64,068.981 in U.S treasury bonds on Ava's second birthday to ultimately provide $120,000 for college expenses in 16 years.

4 0

4 years ago

You must decide between $25,000 in cash today or $30,000 in cash to be received two years from now. If you can earn 8 percent in

Anna71 [15]

Answer:

The deal to receive $30000 is better.

Explanation:

To find the better deal we need to calculate the present value of $30000 and then compare it with the amount $25000. If the amount is greater than the $25000, then the amount should be received after the 2 years.

The given time period (n )= 2

Interest rate (r ) = 8%

The amount received after 2 years = $30000

$\text{Present value of money} = \frac{Future \ value}{(1 + r)^n } \\= \frac{30000}{(1+0.08)^2} \\= $25720.16$

Since the amount is more than $25000 so the deal to receive the money after 2 years will be better.

5 0

3 years ago

The following information is available for two different types of businesses for the 2018 accounting year. Hopkins CPAs is a ser

Klio2033 [76]

Answer:

Hopkins CPAs

Income Statement

Revenue 44,000.00

Salary 28,200.00

Profit 15,800.00

Balance Sheet

Assets

Cash 49,800.00

Total 49,800.00

Capital & Liabilities

Retained Earnings 15,800.00

Loan 34,000.00

Total 49,800.00

Cashflow Statement

Operating Activities

Revenue 44,000.00

Salary 28,200.00

Net Flow 15,800.00

Investing Activities

NIL

Financing Activities

Loan 34,000.00

Opening Cash NIL

Net Cashflow 49,800

Closing Cash 49,800.00

2. Sports Clothing

Income Statement

Revenue 50,000.00

Cost of Sales 27,700.00

Operating Expenses 4,000.00

Profit 18,300.00

Balance Sheet

Assets

Cash 47,000.00

Inventory 5,300.00

Total 52,300.00

Capital & Liabilities

Retained Earnings 18,300.00

Loan 34,000.00

Total 52,300.00

Cashflow Statement

Operating Activities

Revenue 50,000.00

Operating Costs 31,700.00

Working Capital 5,300.00

Net Flow 13,000.00

Investing Activities

NIL

Financing Activities

Loan 34,000.00

Opening Cash NIL

Net Cashflow 47,000

Closing Cash 47,000.00

Explanation:

1. Hopkins CPAs

Data for Hopkins CPAs Borrowed $34,000 from the bank to start the business.

Dr. Cash...34,000

Cr. Loan..........34,000

Provided $44,000 of services to clients and collected $44,000 cash.

Dr Cash......44,000

Cr Revenue..........44,000

Paid salary expense of $28,200.

Dr Salary Expense...28,200

Cr Cash............................28,200

Hopkins CPAs

Income Statement

Revenue 44,000.00

Salary 28,200.00

Profit 15,800.00

Balance Sheet

Assets

Cash 49,800.00

Total 49,800.00

Capital & Liabilities

Retained Earnings 15,800.00

Loan 34,000.00

Total 49,800.00

Cashflow Statement

Operating Activities

Revenue 44,000.00

Salary 28,200.00

Net Flow 15,800.00

Investing Activities

NIL

Financing Activities

Loan 34,000.00

Opening Cash NIL

Net Cashflow 49,800

Closing Cash 49,800.00

2. Sports Clothing

1.Borrowed $34,000 from the bank to start the business.

Dr Cash...34,000

Cr Loan..............34,000

2.Purchased $33,000 inventory for cash.

Dr. Inventory.....33,000

Cr. Cash.....................33,000

3.Inventory costing $27,700 was sold for $50,000 cash.

Dr. Cash.... 50,000

Cr. Sales.................50,000

Dr. Cost of Sales...27,700

Cr. Inventory...................27,700

4.Paid $4,000 cash for operating expenses.

Dr. Operating Expenses...4000

Cr. Cash..................................4,000

Income Statement

Revenue 50,000.00

Cost of Sales 27,700.00

Operating Expenses 4,000.00

Profit 18,300.00

Balance Sheet

Assets

Cash 47,000.00

Inventory 5,300.00

Total 52,300.00

Capital & Liabilities

Retained Earnings 18,300.00

Loan 34,000.00

Total 52,300.00

Cashflow Statement

Operating Activities

Revenue 50,000.00

Operating Costs 31,700.00

Working Capital 5,300.00

Net Flow 13,000.00

Investing Activities

NIL

Financing Activities

Loan 34,000.00

Opening Cash NIL

Net Cashflow 47,000

Closing Cash 47,000.00

5 0

3 years ago