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3 years ago

12

marilyn has an investment that has a potential of a high rate of return. why is it that her investment probably also has a high-

risk possibility?

1 answer:

Zarrin [17]3 years ago

8 0

Because every investment has a risk of failure of return

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Identify which of the following statements are true for the corporate form of organization. 1. Ownership rights cannot be easily

Nat2105 [25]

Answer:

1.Owners are not agents of the corporation- True Managers and directors are the agents of the owners of the corporation. What owners do is not always on behalf of the corporation.

2. It is a separate legal entity.- True Corporate enjoy separate existence. Their assets and liabilities are different from that of their owners.

3. It has a limited life.- False Corporations have unlimite life. They continue to function even after the death of their owners.

4. Capital is more easily accumulated than with most other forms of organization.- True If a corporation needs capital, it cal raise money by issuing shares in the open market. People invest if the prospects are good and the company can gather more funds whenever required. It is also easier for a corporation to acquire loans.

5. Corporate income that is distributed to shareholders is usually taxed twice- True First the Income of the company is taxed which in a way..

6 0

3 years ago

Read 2 more answers

In the micro supply and demand model, which of the following is true when a fully effective price ceiling is removed from a comp

anzhelika [568]

Answer:

Consumer surplus must rise

Explanation:

Remember, the Price ceiling is removed in a competitive market when there is a struggle to get many consumers.

If however the market price is not allowed to rise to the equilibrium level, quantity demanded would exceed quantity supplied, creating a shortage.

For example, several firms sells apple fruit at a price ceiling of $5, when the price ceiling is removed in this competitive market we would expect the firms to lower the price they sell their apples inorder to get more customers.

7 0

3 years ago

Otis Thorpe Corporation has 10,000 shares of $100 par value, 8% preferred stock and 50,000 shares of $10 par value common stock

s2008m [1.1K]

Answer:

(a) Cumulative dividend is not reported in Balance sheet.

The dividends in arrears on December 31, 2014 is $240,000

(b) Preferred Stock (Dr.) $400,000

Common Stock (Cr.) $280,000

Paid in capital Excess of par (Cr.) $120,000.

(c) Cash (Dr.) $1,070,000

Preferred Stock (Cr.) $1,000,000

Paid in capital (Cr.) $70,000

Explanation:

a. Cumulative dividends on Preferred stocks are not declared and therefore they are not reported in Balance sheet of a company.

To calculate the dividends in arrears on December 31, 2014,

10,000 shares * $100 par value * 8% preferred stock. * 3 years arrears.

= $240,000.

b. Preferred stock conversion into common stock is recorded as common stock account in balance sheet.

Preferred stock conversion amount is 4,000 shares * $100 par value = $400,000. This is presented as debit entry.

The credit entry will be common stock account with $ 280,000 (4,000 * 7 shares conversion * $10 par value).

The difference in both entries will be recorded as paid in capital as credit.

c. When preferred stock is issued cash is increased so debit account will be cash (10,000 shares * $107 per share) and credit entry will be Preferred Stock account in balance sheet at par value (10,000 shares * $100 par value). The remaining is credited in paid in capital of preferred stock account [10,000 shares * $7 ($107 - $100) per share].

4 0

3 years ago

Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under-

likoan [24]

Answer:

overhead rate $4 per machien hour

applied overhead 1,560,000

The overhead was underapplied for 15,000

entry to adjust against COGS

Cost of Goods of sold 15,000 debit

Factory overhead 15,000 credit

Explanation:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

we divide the expected overhead over the total amount of budgeted machine hours to determinate the overhead rate:

1,600,000 / 400,000 = $4 per machine hours

Actual machine hours 390,0000

applied overhead:

actual cost driver x rate per driver

390,000 x $4 = 1,560.000‬ applied overhead

Actual overhead 1,575,000

As aplies is lower, we should adjust for 15,000 difference

5 0

3 years ago

Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,750,000 (250,00

Zepler [3.9K]

Answer:

Allocated overhead= $1,430,600

Explanation:

Giving the following information:

The company's executives estimated that direct labor would be $3,750,000 (250,000 hours at $15/hour) and that factory overhead would be $1,550,000 for the current period.

The records show that there had been 230,000 hours of direct labor.

Using direct labor hours as a base.

Predetermined overhead rate= total estimated manfacturing overhead for the period/ total amount of allocation base

Predetermined overhead rate= 1555000/250000= $6.22 per hour

Allocated overhead= Predetermined overhead rate*actual hours= 6.22* 230000= $1,430,600

7 0

3 years ago