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ivanzaharov [21]
3 years ago
10

Mouse Inc. uses the alternative method of accounting for prepayments and purchased a $1,200, 6-month insurance policy. The compa

ny immediately debited the Insurance expense account. By the end of the period, $400 of the policy had expired. Demonstrate the required adjustment needed at the end of the period.
Business
1 answer:
zysi [14]3 years ago
3 0

Explanation:

The adjusting journal entry to record the given adjustment is shown below:

At the year-end

Insurance expense A/c Dr. A/c $800

       To Prepaid Insurance A/c $800

(Being insurance expense is recorded)

The computation is given below:

= Prepayment done for 6 months insurance policy - expired insurance

= $1,200 - $400

= $800

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The _________ strategy involves a firm using different marketing mix activities to help consumers perceive the product as being
nadezda [96]

Answer:

product differentiation

Explanation:

A product differentiation strategy focuses on distinguishing your company's products or services from the competition. The company must add meaningful and valued differences that will distinguish our product or service in order for our customers to view them as different or better. The goal of a differentiation strategy is to gain a competitive advantage since customers associate differentiated products to higher quality products.

7 0
3 years ago
Each of two stocks, A and B, are expected to pay a dividend of $5 in the upcoming year. The expected growth rate of dividends is
Rama09 [41]

Answer:

The intrinsic value of Stock A is 500

Explanation:

According to the DDM method the formula for calculating the intrinsic value of a stock is

Upcoming Dividend/Required rate of return - Growth rate of stock.

Upcoming Dividend of Stock A= 5

Required rate of return on Stock A= 11% or 0.11

Growth rate on stock A= 10% or 0.10

Intrinsic value of stock A=

5/(0.11-0.10)=5/0.01=500

The intrinsic value of Stock A is 500

4 0
3 years ago
Janet wants to calculate the real growth rate for the US between 2010 and 2011. She has the follow information: real GDP in 2010
Zina [86]

Answer:

The answer is 3.3%

Explanation:

Percentage growth rate is

New figure - Old figure /old figure x 100%

Real GDP in 2011 is $15.5 trillion

Real GDP in 2010 is $15 trillion

So we have $15.5 - $15/$15 x 100%

$0.5/$15 x 100%

0.033 x 100%

3.3% is the growth rate between 2011 and 2010.

Alternatively, new figure - old figure - 1

$15.5/15 - 1

1.033 - 1

0.033

Expressed as a percentage

0.033 x 100%

3.3%

8 0
4 years ago
Fyodor, a manager of the research and development team of an organization, challenges his subordinates to "think outside the box
nexus9112 [7]

Answer: mental models.

Explanation: A mental model is an explanation of someone's thought process about how something works in the real world and learning a new mental model gives you a new way to see the world. Furthermore, It’s represent the surrounding world, the relationships between its several parts and an individual intuitive perception about his or her own acts and their consequences.

4 0
3 years ago
Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However,
BigorU [14]

Answer:

Based on the information supply of cards is more elastic (price sensitive) than that of roses

Explanation:

Price elasticity of supply is defined as the sensitivity of quantity supplied to changes in price.

The formula is given below

Price elasticity of supply= Change in quantity supplied ÷ Change in price

In this scenario the demand for both roses and cards increases, however the price of roses increases more.

This implies that the denominator in the formula is higher in roses resulting in smaller price elasticity of supply.

The elasticity of supply for cards is higher than that of roses, so it is more sensitive to changes in price.

Cards can be stored from year to year so the labour for maintaining a stock of cards is low with resultant low price.

On the other hand roses require care to grow. It requires watering, application of chemicals to treat infestation and so on. So suppliers tend to push the extra cost of growing roses to the buyers

6 0
3 years ago
Read 2 more answers
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