Answer:
C. $222,500 ÷ $313,500
Explanation:
Calculation for cost to retail ratio
COST
Beginning inventory $30,000
Add; Purchases $190,000
Add: Freight in $2,500
Cost $222,500
RETAIL
Beginning inventory $45,000
Add: Purchases $260,000
Add: Net mark ups $8,500
Retail $313,500
Therefore, the cost to retail ratio will be
$222,500 $313,500
Answer with Explanation:
The decision making under the conditions of uncertainty:
Uncertainty is an unquantifiable outcome of a decision that can not be mathematically modeled whereas risk is a quantifiable outcome of a decision that can be mathematically modeled.
The expected value method helps in decision making related to uncertainty are making prudent estimates of cash flow by using expected value.
Expected value considers every outcome under uncertainty and computes all of the expected value for each outcome. The outcome that gives highest expected value is said to be best case and likewise the outcome that gives lowest expected value is said to be worst case.
Suppose that two projects gives the same expected value, then the decision will be based on the degree of uncertainty which means the project that has lowest uncertainty of returns will be our choice.
The deviation of the expected value from required return on a project can be measured as a Degree of uncertainty that helps in understanding to what extent the return will be not as per the expectation. The Precise Measurement of uncertainty can be calculated by inclusion of standard deviation to estimate expected value of the decision taken.
The expected money value is the monetary value that a particular decision will generate. In expected monetary value the decision is based on the weighted average of best case and worst case. The value derived is average thus the standard deviation would be very low which means that the calculation was precise. Decision trees are used in precise measurement of cash flow related to each expected outcome and deriving a weighted average value.
Answer:
Explanation:
Preparation of all journal entries made in 2017 related to the bond issue.)
Jan.1
Dr Cash $618,000
Cr Bonds Payable $618,000
Cr Premium on Bonds Payable. $8,000D
c.3 Interest Expense $59,100
Dr Premium on Bonds Payable $900
($18,000 *$20)
Cr Interest Payable $60,000
($600,000 × 10% = $60,000)
Answer:
The correct answer is letter "A": are shortcuts that save time and energy in decision making.
Explanation:
Heuristics is a practical technique for problem-solving. It is creative at the moment of taking decisions and can be applied to any matter of study. Sometimes heuristics are emotionally-based but in some other cases, it is knowledge-influenced. <em>While heuristics can save an individual's time and energy it could not lead them to make the best choice.</em>
Answer:
D) debit Supplies, $1,500; credit Supplies Expense, $1,500.
Explanation:
The first journal entry was:
Dr Supplies expense 4,000
Cr Cash 4,000
If at the end of the year the supplies inventory equals $1,500, then the supplies expense must decrease. Expenses have a debit balance, if we want to decrease them, we must credit them.
The adjusting entry would be:
Dr Supplies 1,500
Cr Supplies expense 1,500
This way the supplies account (asset) increases, while the expenses decrease.
