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3 years ago

As a rule of thumb, how often should an entrepreneur reevaluate her compensation package?

Business

2 answers:

nataly862011 [7]3 years ago

8 0

Answer:

Every 12 months is incorrect on the test

Explanation:

so Every 6 months should be the correct answer

shusha [124]3 years ago

7 0

Answer:

12 months

Explanation:

The fiscal or financial period of a business lasts for 12 months or one year. It means that at the end of that 12 months, the business prepares its financial statement to determine its profitability. The business assesses its growth, success, and failure for the period.

After evaluating performance, planning for the next period of 12 months begins. The entrepreneur prepares a budget for the year, including their compensation. Compensation for the entrepreneur should be budgeted and reviewed every year together with the other budget items.

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Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a

BigorU [14]

Answer and Explanation:

The computation of two different depreciation schedules is shown below:-

a. Using the Double-declining balance method

Year Equipment Cost Depreciation rate Amount

2005 $90,000 50% $45,000

2006 $45,000 50% $22,500

2007 $22,500 50% $11,250

2008 No depreciation as it is lower that straight line method that is $22,500 also we took the double rate of 25% so we consider 50%

b. Using the straight line method

Straight Line Depreciation Method:

$100,000 - $10,000

= $90,000

Year Equipment Cost Depreciation rate Amount

2005 $90,000 25% $22,500

2006 $90,000 25% $22,500

2007 $90,000 25% $22,500

2008 $90,000 25% $22,500

Depreciation rate is

= 1 ÷ 4 years

= 25

2. The double declining method reduced the net income while the straight line method increased the net icnome

5 0

3 years ago

A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for $6. In producing the

ahrayia [7]

Answer:

<u>Average total cost for 7000 staplers was= $2.43</u>

Explanation:

Total Cost=Fixed Cost +Variable Cost

Fixed Cost =$45000-$28000

Fixed Cost=$27000

Average total Cost= Fixed Cost/ Quantity

=17000/7000

=$2.43

4 0

3 years ago

On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31

Tasya [4]

Answer:

April 1

Debit : Patent $1,500,000

Credit : Cash $1,500,000

December 31

Debit : Amortization $125,000

Credit : Accumulated Amortization $125,000

December 31

Debit : Impairment loss $6,000,000

Credit : Accumulated Impairment loss $6,000,000

Explanation:

Both the Amortization and Impairment loss reduce the value of assets. They are therefore expenses accounted in Income Statement.

Amortization : is the loss of value of an asset due to passage of time.

Amortization Expense = (Cost - Residual Amount) ÷ Useful Life

= ( $1,500,000 - $ 0) ÷ 12

= $125,000

Impairment loss : is the excess of the Carrying Amount of an Asset over its Recoverable Amount( Higher of Value in Use and Fair Value less Cost to Sell)

6 0

2 years ago

If your lifestyle budget is $50000 a year selecting a career earning $75,000 will most likely allow you to meet your lifestyle g

NARA [144]

From what is said the answer is true. that leaves 25000 over your lifestyle budget

8 0

3 years ago

Cost of goods manufactured during the year is $240,000, and work in process inventory on December 31 is $50,000. Work in process

Zinaida [17]

Answer:

$165,000

Explanation:

The first step is to calculate the work in process inventory

= 50,000/40/100

= 50,000/0.4

= 125,000

Therefore the total manufacturing cost can be calculated as follows

= 240,000-125,000+50,000

= 115,000+50,000

= 165,000

Hence the total manufacturing costs is $165,000

8 0

3 years ago