Answer:
B. 1. Planning the performance of the company as a whole and of its sub-units
2. Providing subordinate managers with a frame of reference
3. Investigation into variations from the plan
4. Use of feedback, new conditions and experience to develop a plan for the next period.
Explanation:
Budgeting cycle is the key element of planning the functions of a company.
This is the element which defines the availability of resources with the company. This includes the following:
Planning: This step basically sets the targets of the company to be achieved and that clearly divided into sub units or segments also.
Management: Management shall be designated for each segment individually to meet the segment performance criteria.
Investigation: This involves investigating what a company can do and what it cannot, what further alterations can be done.
Feedback: This is used as a step, to monitor whether as far we running the performance in main direction as stated in planning, or if any problems faced by employees or managers shall be taken care.
Answer:
the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
Explanation:
"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." This policy directive follow the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
<u>The reason is that in the short-run, deficits offer economic solutions by being an antidote to recessions, hence they could be a strategy of recession management in the short run</u>
<u>However in the long-run, deficits are not advisable as they could lead to debts because the major way to manage such deficits is by external borrowings. </u>
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Answer and Explanation:
The computation and the journal entry is shown below:
1. For accumulated depreciation, first we have to find out the depreciation expense using the straight line method
= (Original cost - salvage value) ÷ (Useful life)
= ($830,000 - $60,000) ÷ (10 years)
= $77,000
Now the accumulated depreciation for 5 years is
= $77,000 × 5 years
= $385,000
2. Now the journal entry is
Cash $300,000
Loss on sale or disposal $145,000
Accumulated Depreciation - Machine equipment $385,000
To Machine equipment $830,000
(Being the sale of the machinery is recorded)
For recording this we debited the cash, loss and accumulated depreciation as it increased the assets, losses, and the accumulated depreciation balance and credited the machine equipment as it decreased the assets
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Jack would like to have $1.25M to retire in 35 years. He will get $375,000 the day he retires.
He can deposit funds in a money market account which earns 6.5% interest per year, and he would like to make yearly deposits.
<u>First, we need to calculate the final value required:</u>
FV= 1,250,000 - 375,000= $875,000
Now, using the following variation of the final value formula, we can calculate the yearly deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
FV= 875,000
n= 35
i= 0.065
A= (875,000*0.065) / [(1.065^35) - 1]= $7,054.48
The annual deposit is $7,054.48.
Answer:
C. A security's beta measures its non-diversifiable, or market, risk relative to that of an average stock.
