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Harrizon [31]
3 years ago
8

Holten Farm sells new tractors and pays each salesperson a commission of $1,000 for each tractor sold. During the month of Augus

t, a salesperson, Fred, sold 3 new tractors. Jacob pays Jason on the 10th day of the month following the sale. Fred operates on the cash basis; the tractor dealer operates on the accrual basis. Which of the following statements is true?
A) Fred will recognize commission revenue earned in the amount of $3,000 in August.
B) Jacob will recognize commission expense in the amount of $3,000 in August.
C) Fred will recognize commission expense in the amount of $3,000 in September.
D) Fred will recognize revenue in the same month that the tractor dealer recognizes expense.
Business
1 answer:
OlgaM077 [116]3 years ago
5 0

Answer:

B.Jacob will recognize commission expense in the amount of $3,000 in August

Explanation:

Jacob will recognize commission expense in the amount of $3,000 in August for the 3 tractors that was sold and Jacob was the salesperson who pays Jason the amount of cash realized on the 10th day of the month following the sale of the tractors.

The Commission expenses can be calculated as:

(commission of $1,000× Number of tractor 3)

=$3,000

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$1,680

Explanation:

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3 years ago
Identify and analyze a department in your organization that experiences frequent equipment or process failures. If you are not c
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Answer:

Find the explanation below.

Explanation:

The name of my organization is Prime Plc. known for the production of confectionaries. The Production Department in my organization has been experiencing frequent equipment failures quite recently. A close investigation showed that the delays were caused by a breakdown of the sugar mills, mixers and, coating machines. This has resulted in delays in the production process. To improve these failures, I believe that the organization should:

1. Employ Technicians who can quickly carry out repair work on these machines when they breakdown instead of outsourcing the repair work for this would take a longer amount of time to get the machines up and running.

2. Introduce the periodic maintenance of these machines. Machines are subject to wear and tear, so I would suggest that the maintenance of these machines is carried out within intervals of three months.

3. Train the production personnel on the proper usage of these machines. Production personnel should be updated on current and effective ways of handling machines so as to guarantee their safety and longer use.

4. Make provisions for backup machinery and equipment. The organization would do well to purchase backup equipment especially for machines that the organization cannot do without so that in the event of an equipment failure, the production process would not be stalled.

When these measures are considered, there would be a significant improvement in the production department.

8 0
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The market price of a security is $50. Its expected rate of return is 14%. The risk-free rate is 6% and the market risk premium
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Answer:

The market price of the security is $31.81

Explanation:

In order to calculate the market price of the security if its correlation coefficient with the market portfolio doubles we would have to calculate first the following:

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D=P*E(ri)

D=$50*0.14

D=$7

Next, we would have to calculate the beta of the security using the CAAPM Equation:

βi= E(ri)-rf/E(rm)-rf

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=0.9412

Next, we have to calculate the new beta due to the change in the correlation coefficient with the following formula:

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=2*0.941

=1.882

Next, Calculate the new expected return as follows:

E(ri)=rf+βi(E(rm)-rf)

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P=D/E(ri)

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Answer:

B) search for solutions that are reasonable

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When Emily solves her work problems by satisficing a large number of decisions, it means that she makes the decisions that are barely adequate to solve the issues. She doesn't take the time to make the best possible ones. Since she has a very tight work schedule, she doesn't have the time to search all the necessary information nor to search all the possible options. She doesn't have the time to analyze which alternative is best, she will take whatever option she finds first.

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3 years ago
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