The recording, summarizing, and reporting of the economic activities and events of an organization is known as ____

4. Which of the following is a liability?

zlopas [31]

Answer:

Maybe C.

Explanation:

5 0

3 years ago

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Tom takes a loan of $60,000 at 4% annual interest to purchase a property worth $100,000. He earns an annual income of $10,000 af

guajiro [1.7K]

Based on the given data, Tom's leveraged return on the real estate investment is 13.3%.

A leveraged return means an investment return on equity partially financed with debt.

Investment in property = $100,000 - $60,000

Investment in property = $40,000

Interest = $60,000 * 4%

Interest = $2,400

Net income after tax = ($10,000 - $2,400) * (1 - 30%)

Net income after tax = $7,600 * 0.70

Net income after tax = $5,320

Leveraged return = Net income after tax / Investment in property * 100

Leveraged return = $5,320 / $40,000 * 100

Leveraged return = 0.133 * 100

Leveraged return = 13.3%

Hence, Tom's leveraged return on the real estate investment is 13.3%.

Learn more about leveraged return:

brainly.com/question/14005616

8 0

3 years ago

Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $

kirill [66]

Answer:

Incremental cost= $61,875

Explanation:

Giving the following information:

Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit

We need to determine whether it is more convenient to produce the component or outsource it. We will only consider the relevant costs, therefore the fixed costs will not be taken into account.

Make in house:

Cost= 49,500*5.15= $254,925

Buy:

Cost= 49,500*3.90= $193,050

Incremental cost= 254,925 - 193,050= $61,875

8 0

3 years ago

ERIC: Hi, Hubert. This is my first economics course, and many of the concepts discussed in class are really confusing. Today the

Ymorist [56]

Answer:

ERIC: Hi, Hubert. This is my first economics course, and many of the concepts discussed in class are really confusing. Today the professor explained that the true cost of going to college includes both the tuition I pay as well as something called the "opportunity cost" of going to college. I don't understand. I pay $32,000 per year in tuition. The tuition is what I pay to the school, so it seems like that should be my true cost!

HUBERT: Hi, Eric. Many concepts in economics can be confusing at first. Let's talk it through.

Economists think of costs a bit differently than just the dollar amount that you pay. To an economist, the true cost of college includes the total value of what you give up in order to acquire your college education. In other words, not only did you give up the tuition money that you paid, but by attending college, you gave up opportunities to do other things with your time as well. This is where the idea of opportunity cost comes from.

The opportunity cost of your decision to go to college is the value of the next best alternative that you gave up. Suppose that your next best alternative to college is to work as a cashier. By not going to college, and taking this job, you could earn $16,000 per year. Then your opportunity cost of college is $16,000, and your total cost of a year of college is $48,000 per year.

ERIC: I think I get it now. So when I take into account the opportunity cost of college, the true cost is actually more than just the tuition.

HUBERT: Correct. Thinking about costs in this way will help you make more rational decisions in your everyday life. Now tell me, how can you explain your decision to go to college?

ERIC: I chose to go to college because, for me, the value of a year in college gives me a higher stand and offers me a better long-term opportunity that someone without a college degree.

Explanation:

The question poses a discussion about the opportunity cost of attending college. The understanding behind this is that by choosing to go to college, Eric is forfeiting the opportunity to get a job as a cashier that would earn him $16,000 a year while incurring his college fees of $32,000. Therefore, the total cost of attending college to him should be $48,000.

3 0

3 years ago

How did huge industrial trusts develop in industries such as steel oil and banking, what was the effect on the economy?

aalyn [17]

The huge industrial trusts developed in industries such as steel and oil because there was a lot of competition to make the most profit and to be the best factory. Oil was a huge cooperation because it fueled the trains. Smaller bothersome rival companies would join bigger ones to create a monopoly. Standard oil owned by Rockefeller was a vast power and the word trust came to be generally used to describe any large scale business combination. Steel became a large industry for the fact that it was a strong metal that built the trains and tall sky scrappers. Also steel was used to build the transcontinental rail roads The Bessemer process came about which was a method of making cheap steel. It made the economy a more cut throat environment of dog eat dog and became ruthless. The economy was about power and money and was very greedy. Immigrant workers were employed with very low wages and worked laboriously many hours a day. Their effect on the economy was to create large monopolies, their effects were tremendous.

3 0

3 years ago

The recording, summarizing, and reporting of the economic activities and events of an organization is known as _____.