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3 years ago

On December 31, 2016, Avery Corporation paid $18,000 for next year's insurance policy.

Business

1 answer:

Aleonysh [2.5K]3 years ago

8 0

Answer:

C. Prepaid insurance 18,000 debit

Cash 18,000 credit

Explanation:

The company will do a mistake if it reocrd this as a mistake as it will be posting an expense for an evnt that take place during the next accounting cycle (2017) As the insurance will be outstanding during that period not the one ending.

Also it is not an expense as the insurance company now has the obligation to perform if something happens So we have an asset right now, through time and as long as the insurance is not executed we will declare the expenses.

But for now, it is an asset.

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Suppose that there are two employers in Tinytown. CareCo offers a generous health insurance package to all employees, while Apat

professor190 [17]

Answer:

Choose CareCo.

Explanation:

Given : CareCo offers a generous health insurance package to all employees. ApathyInc pays slightly higher wages than CareCo, but does not offer health insurance.

A person who is unhealthy & expects to have high healthcare expenses : would have issues having direct health insurance from an insurer, based on high risk evaluation. Even if by chance, he/ she gets, it will be at extremely high price i.e premium rates & is likely to have less coverage. So, the person rationally would prefer to protect himself / herself from this huge health expenditure risk, & would protect self & family from catastrophic health costs. He / she would do so by choosing to work for Care Co, which gives generous health insurance to all its employees, by sacrifising higher salary by Apathy giving no health insurance. He/ she is logical as the wage differential is likely to be less than catastrophic health costs

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3 years ago

Which of the following best describes the group development pattern known as punctuated equilibrium?

melisa1 [442]

Answer:

The answer is B: At the midpoint of the project, members realize that their behavior pattern must change in order to complete the project on time.

Explanation:

Punctuated equilibrium is a concept in both biology and business where long periods of relative stability are often followed by growth spurts.

The punctuated-equilibrium model argues that groups usually move forward during bursts of change after going for long periods without change.

In the answer B, this concept is captured as group members of a project realise somewhere at the midpoint, that their behavior pattern must change in order to complete the project on time.

This shows that a period of relative stability was observed and then a short period of growth will be observed during the project lifecycle. This agrees with the development pattern known as punctuated equilibrium.

4 0

4 years ago

Read 2 more answers

Cobe Company has already manufactured 19,000 units of Product A at a cost of $25 per unit. The 19,000 units can be sold at this

Dmitriy789 [7]

Answer:

Incremental net income from further processing is $566,600

Explanation:

First of all, it would be necessary to compute profit from selling the product at cut off point and profit when it is further processed in order to determine whether or not it is worth processing further:

Sales revenue $400,000

cost of production(19,000*$25) $475,000

Loss from selling ($75,000)

Further processing:

sales revenue

Product B(5200*$108) $561,600

Product C(11,000*$55) $605,000

Total revenue $1,166,600

total cost

cost of production ($475,000)

cost of further processing ($200,000)

total costs ($675,000)

Profit $491600

By further processing the incremental net profit is $566,600 ($491,600-(-$75000)

4 0

3 years ago

A firm has a current price of $40 a share, an expected growth rate of 11 percent and expected dividend per share (D1) of $2. Giv

Xelga [282]

Answer:

d. 16% - buy

Explanation:

R = (D1 / P0) + g

Where, R=Expected Return, P0 = Current Market Price = $40, D1=Expected Dividend=$, g = Expected Growth Rate = 11% = 0.11

Expected Return = R = ($2/$40) + 11%

R = 0.05 + 0.11

R = 0.16

R = 16%

Expected Return is higher than the required return of 12%. Hence, it should be bought (it is expected to give higher return than required)

7 0

3 years ago

Juggernaut, Inc. makes large-size commercial appliances such as freezers and refrigerators. These items are bulky and the firms

-Dominant- [34]

Answer:

Regional Production

Explanation:

Juggernaut, Inc. can manufacture its bulk products by region, that way the distance to each selling point is less and the costs are lower.

7 0

3 years ago