Answer:
B) Deposit into Killian’s account, then figure out his commission, deduct that number to arrive at the final amount (due to the principal) and then write a check to the principal for the monies due to him, within 3 business days.
Explanation:
Killian can deposit the money in the principal's account, in an escrow account or even deposit it in the broker's trust fund, whatever suits his mind or has been previously agreed with the seller, but he cannot keep the money for himself. Killian can only collect his commission once the sale has been completed.
There is no such thing as commissions in advance, since there is always the possibility that the deal is not completed, e.g. the house might burn down, the banking system may completely collapse, the buyer or seller might die, etc. Even though the possibility of extreme events occurring may be very low, it still exists.
Answer:
$256,571
Explanation:
College Graduation fee for four years in the present value
PV = $20,000 x 4 = $80,000
As historically the fee has risen by 6% we need to find future value when the baby will be 20 years old by using future value formula
Let's say
FV = Future value
PV = Present value
n = number of years
i = Interest
Workings
FV = PV x ((1+growth rate)^n)
FV = $80,000 x ( (1+0.06)^20)
FV = $256,571
As the bank interest rate is 8% the saving need to be deposited annualy can be calculated as
Savings = (FV x i) / ((1+i)^n)-1)
Savings = ($256,571 x 0.08) / ((1+0.08)^20)-1)
Savings = 20,525.68 / 3.66
Savings = $5,608
Debit because, you can keep track of it and it comes straight out of your bank account.
Answer:
$80,000
Explanation:
Calculation for the net income for Dana's Dress Shop using the traditional format
NET INCOME USING TRADITIONAL FORMAT
Using this formula
NET INCOME=Gross Margin -Total Selling & Administrative Expenses
Where,
Gross Margin =$140,000
Total Selling & Administrative Expenses=$60,000
Let plug in the formula
NET INCOME=$140,000-$60,000
NET INCOME=$80,000
Therefore the NET INCOME will be $80,000.
Answer:
c
Explanation:
Zero-based budgeting is a method of budgeting in where expenses must be justified for each new period. It requires managers to estimate sales, production, and other operating data as though operations are being started for the first time
The master budget is the sum of all budget made by lower levels in the organisation.
Continuous budgeting is the process of expanding the budget by adding one more month as each month goes by.
A flexible budget is a budget that changes to the activity levels of a the organisation
