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3 years ago

Ifre chapter 1, conceptual multiple

Business

1 answer:

geniusboy [140]3 years ago

5 0

Answer:

Explanation:

When the future revenue producing ability of the inventory is above its original cost the

companies should reports their inventory value with LCNV method.

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At the break-even point:

OlgaM077 [116]

Answer:

D. Contribution margin would be equal to total fixed costs

Explanation:

As we know that

break even point is the point at which the firm is earning no profit or no loss suffered

In equation, it is

Total cost = Total revenues

In addition,

The contribution margin = Sales - variable expenses

Therefore

The contribution margin = Fixed cost = break even point

If we subtract the contribution margin from the fixed cost the amount should be zero which implies the break even point

5 0

3 years ago

Imagine that the government statisticians who calculate the inflation rate have been updating the basic basket of goods once eve

exis [7]

The substitution bias causes an inflation rate calculated using a fixed basket of goods over time to overstate the true rise in the cost of living because it does not take into account that people can substitute away from goods whose prices rise disproportionately.

Explanation:

When the price of a good rises, consumers tend to purchase less of it and to seek out substitutes instead.

On the other hand , if the price of a good falls, people will tend to purchase more of it and not opt for its substitutes

This concept implies that goods with generally rising prices should tend over time to become less important in the overall basket of goods used to calculate inflation, while goods with falling prices should tend to become more important for the calculation of inflation

The quality/new goods bias causes inflation calculated using a fixed basket of goods over time to overstate the true rise in cost of living because improvements in the quality of existing goods and the invention of new goods are not taken into account. 

6 0

3 years ago

Letty's Laundry and Dry Cleaning incorporated and started business on January 1, 2016. 1 Letty's Laundry and Dry Cleaning began

lara [203]

Answer:

Letty's Laundry and Dry Cleaning Incorporated

Effect of each transaction on the accounting equation:

Transaction Appropriate

No. Letter

1. c.

2. b.

3. b.

4. a.

5. e.

6. c.

7. e.

8. e.

9. e.

10. e.

Explanation:

Data key:

list:

a. Increase in an asset, decrease in another asset.

b. Increase in an asset, increase in a liability.

c. Increase in an asset, increase in stockholders' equity.

d. Decrease in an asset, decrease in a liability.

e. Decrease in an asset, decrease in stockholders' equity

b) The above listing demonstrates the effect on the accounting equation of every business transaction. The net effect is such that the two sides of the equation are always in balance, provided the proper accounting records have been maintained.

5 0

3 years ago

You are given the following information:Expected return on stock A12%Expected return on stock B20%Standard deviation of returns:

AlexFokin [52]

Answer and Explanation:

The computation of the expected return and standard deviation when there is 100% in stock A is shown below:

Expected return is

= 0.12 × 100

= 12%

And, the standard deviation of the portfolio is

= √1^2 + √1^2

= 1

Hence, the same is relevant

3 0

3 years ago

John Jansen, an employee of Redwood Company, had gross earnings for the month of May of $4,000, FICA taxes are 8% of gross earni

pogonyaev

Answer:

The correct answer is B) 2,880

Step I - Ascertain All Pre Tax Deductions

Deduction 1 - Voluntary Deduction

This is given as $5. This is the only pretax deduction given.

To obtain John Jansens net pay, first we need to establish all the other deductions.

Deduction 2 - FICA Taxes.

FICA means “Federal Insurance Contributions Act.” FICA tax is mandatorily deducted from workers' paychecks to pay for the Social Security retirements and Medicare (Hospital Insurance) benefits for elderly Americans.

FICA Tax = 8% of Gros Earnings

Therefore FICA Tax = $\frac{8 X 3995}{100}$

FICA Tax = $319.60

Deduction 3 - Federal Income Tax

This has already been given as $ 675

Deduction 4 - State Income Tax

This is given as 3% of gross earnings.

That is 3995 x (3/100) or

= $\frac{3 X 3995}{100}$

= $119.85

Step 2 - To calculate the net pay, we need to seperate pre-tax deductions from after tax deductions.

The only pre tax item we have on the list is deduction 1 which is Voluntary deduction of $5.

Therefore Net Pay for John Jansen is ((Gross Pay Less Pretax Deductions) - Sum of other Taxes)

= [($4000 - $5) - ($319.60+$675+$119.85)

=$3,995 - $1,114.45

= $2,880.55 or $2 880 approximately.

Cheers!

6 0

3 years ago