Answer:
b. Salaries and Wages Expense 400 Salaries and Wages Payable 400
Explanation:
The expense shall be recognized in the accounts of Colleen's employer at September 30, in respect of the salary earned by Colleen Mooney for the last week of September.
The following adjusting entry shall be recorded in Colleen's employer accounts:
Debit Credit
Salaries and Wages Expense 400
Salaries and Wages Payable 400
Based on above journal entry, the answer shall be b. Salaries and Wages Expense 400 Salaries and Wages Payable 400
Answer:
$0
Explanation:
The net income is the difference between the sales and total cost which comprises of the variable cost and fixed cost. The sales and variable cost are dependent on the number of units sold.
Let
u = number of units
s = selling price per unit
v = variable cost per unit
F = Fixed cost
I = Net income
I = su - F - vu
but vu = 0.3su
Hence
I = su - 0.3su - F = 0.7su - F
Given that the proposal will increase sales by $12,000,
New sales = su + 12000 ( in $)
and total fixed costs by $8,400
New fixed cost = F + 8400
New variable cost = 0.3( su + 12000) = 0.3su + 3600
New net income = su + 12000 - 0.3su - 3600 - F - 8400
= 0.7su - F
New net income is same as the old net income hence no increase.
Answer:
d. Overstate, understate, understate, zero
Explanation:
The amount of earnings overall is the same. so, in the end, there is n difference in retained earnings.
But, on accrual accounting, the note should not enter the accounting as 1,000 as time value of money exist.
At 2016 the sales revenue should be the present value of 1,000 dollars not the complete 1,000 dollars. Thus, is overstated.
Then, the interest accrued from the note are not recognized. Thus, the first year (2016) recognize revenues that should be matched with 2017 and 2018
Thus, these two subsequent years ended understated.
Answer:
The correct answer is letter "A": The amount that would be paid today to receive a single amount at a specified date in the future.
Explanation:
The present value (PV) of a single sum tells us how much a future sum of money is worth today given a specified rate of return. This is an important financial concept based on the principle that money received in a specific time in the future is not worth as much as an equal sum received today.
Answer:
d. beta did a better job of explaining the returns than standard deviation
Explanation:
Beta measures the systemic risk associated with the particular investment, it do not compute the total risk associated, which is more logical.
Standard deviation computes the total risk associated.
Some risk is natural, like the risk of floods, natural calamities, earthquake, etc:
That risk shall not counted as for comparison as that is associated universally. Further, the risk associated with particular factors like bankruptcy of a company, or some legal case issue of a company are precisely described by beta coefficient.
Thus, beta provides better details about explaining the returns.
