All categories

3 years ago

The risk of employee opportunism, on behalf of agents, is exacerbated by the concept of:________

Business

1 answer:

motikmotik3 years ago

3 0

Answer:

c. information asymmetry.

Explanation:

Information asymmetry also called Information failure, is a state of affairs wherever there is an imperfect information, this happens wherever one party has completely different information than the other party. It is also when the party possess greater economic transaction about than the other party. An example is concerning an automotive manufacturer and buyer, the owner is probably going to own full information regarding its service history and its chance to break-down than the buyer.

You might be interested in

Customer value can be defined as Multiple choice question. obtaining a product or service at the lowest price possible, regardle

Paladinen [302]

That’s crazy math right there am I right

3 0

3 years ago

Pastoria Enterprises has scheduled raw material purchases of $100,000 in January, $130,000 in February, and $150,000 in March. T

IRINA_888 [86]

Answer:

Explanation:

The question asks to calculate how much will be disbursed by the company in February.

Firstly , we know that the company disburses 75% in the month of purchase and 25% during the month after purchase.

Now, 75% of $130,000 would be disbursed as February’s own payment:

Mathematically 75/100 * 130,000 = 97,500

Also, we should not forget that the company disburses 25% of previous month during the current. That is 25/100 * 100,000 = 25,000

Total amount disbursed is thus 25,000 + 97,500 = $122,500

6 0

3 years ago

In order to qualify for Long Term Care insurance, a person must be unable to perform how many of the basic activities of daily l

Marysya12 [62]

B ) at least 2 activities ~ apex

4 0

3 years ago

Read 2 more answers

a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project a

mylen [45]

Answer:

a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018

we must first determine the market price of the bonds:

PV of face value = $2,000,000 / (1 + 5%)²⁰ = $753,778.97 ≈ $753,779

PV of coupon payments = $110,000 x 12.462 (PV annuity factor, 5%, 20 periods) = $1,370,820

market value of the bonds = $753,779 + $1,370,820 = $2,124,599

January 1, 2018, bonds are issued at a premium

Dr Cash 2,124,599

Cr Bonds payable 2,000,000

Cr Premium on bonds payable 124,599

b. Prepare a bond amortization schedule up to and including January 1, 2022

since we are not told which amortization method to use, I will use the straight line method.

Date Interest Cash Premium Carrying

expense paid amortization value

7/2018 $103,770 $110,000 $6,230 $2,118,369

1/2019 $103,770 $110,000 $6,230 $2,112,139

7/2019 $103,770 $110,000 $6,230 $2,105,909

1/2020 $103,770 $110,000 $6,230 $2,099,679

7/2020 $103,770 $110,000 $6,230 $2,093,449

1/2021 $103,770 $110,000 $6,230 $2,087,219

7/2021 $103,770 $110,000 $6,230 $2,080,989

1/2022 $103,770 $110,000 $6,230 $2,074,759

c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.

bond premium amortization per coupon = 124,599 / 20 = $6,229.95 ≈ $6,230

January 1, 2020, coupon payment

Dr Interest expense 103,770

Dr Premium on bonds payable 6,230

Cr Cash 110,000

January 1, 2021, coupon payment

Dr Interest expense 103,770

Dr Premium on bonds payable 6,230

Cr Cash 110,000

d. Prepare the journal entry to record the bond called on January 2021 at 106

Dr Bonds payable 2,000,000

Dr Premium on bonds payable 87,219

Dr Loss on retirement of debt 32,781

Cr Cash 2,120,000

5 0

3 years ago

Simmons, Inc. uses the lower-of-cost-or-market method to value its inventory that is accounted for using the LIFO method. Data

MA_775_DIABLO [31]

Answer:

The lower- of- market- or cost for the item is $21

Explanation:

In the lower of cost or market, the market begins at the replacement cost which is $20, which is then limited or restricted to a ceiling and a floor.

The ceiling is computed as:

Ceiling = Selling price - Completion cost

where

selling price is $30

Completion cost is $2

Putting the values above:

Ceiling = $30 - $2

Ceiling = $28

Computing the floor as:

Floor = Ceiling - Normal profit margin

Floor = $28 - $7

Floor = $21

As the market cannot be lower than the floor which is $21. Therefore, the lower of cost which is $26 and the market which is $21. But have to take lower. So, it is $21.

6 0

3 years ago