A perfect competition market is a market situation where there are many producers and buyers of a particular product, and no single producer or buyer can influence the price. It is characterized by perfect information,en homogenous products, freedom of entry, and exit of firms.
In the perfectly competitive market, there are no barriers to entry or exit, and there is perfect competition among the producers.Therefore, in the perfectly competitive market, the industry demand is given by:Q = 1,000 -20P and the typical firm’s average cost is:AC = 300/Q + Q/3a)Confirm that Qmin = 30
What is ACmin?AC = 300/Q + Q/3Substituting the value of Qmin, we get;ACmin = 300/Qmin + Qmin/3ACmin = 300/30 + 30/3ACmin = 10 + 10ACmin = 20b)
Suppose 10 firms serve the market. Find the individual firm’s supply curve.The supply curve is the marginal cost curve, MC. Therefore, to find the individual firm's supply curve, we need to find MC. Average cost is given by:AC = 300/Q + Q/3At the point where AC is minimum, the derivative of AC is equal to zero.
Therefore;MC = dAC/dQMC = 300/Q^2 + 1/3The individual firm’s supply curve is the MC curve. Therefore, at Qmin;MC = 300/Q^2 + 1/3MC = 300/30^2 + 1/3MC = 0.4444The market supply curve is the horizontal sum of individual firm's supply curve.
Since there are ten firms, the market supply curve is;Qs = 10 * 0.4444Qs = 4.444 P= 1,000 - 20QsP= 1,000 - 20(4.444)P = 911.12Set market supply equal to market demand to determine the competitive price and output
1,000 - 20P = 4.444P = 45.72Q = 1,000 - 20(45.72)Q = 114.56The typical firm's profit is zero.c)Determine the long-run, zero-profit equilibriumThe long-run equilibrium is achieved when the typical firm is earning zero profit, and there is no incentive for new firms to enter or for existing firms to exit thet market. Zero-profit is achieved when:P = ACSubstituting the values of P and AC;1,000 - 20P = 300/Q + Q/31,000 - 20(45.72) = 300/Q + Q/3Q = 91.44
There will be three firms that will serve the market.
In a perfectly competitive market, industry demand is given by Q = 1,000 -20P, and the typical firm’s average cost is AC = 300/Q + Q/3. We have confirmed that Qmin = 30 and found that ACmin = 20. When ten firms serve the market, the individual firm’s supply curve is 0.4444, and the market supply curve is 4.444. The competitive price and output are P = 45.72 and Q = 114.56, respectively, and the typical firm’s profit is zero. The long-run, zero-profit equilibrium is achieved when Q = 91.44, and there will be three firms that will serve the market.
Learn more about homogenous visit:
brainly.com/question/30587533
#SPJ11
"On January 1, 2020, Booker Corp. issued $9 million of ten year bonds at 100.5 (Booker amortizes any premium/discount on a straight line basis). Each $1,000 bond is convertible into 30 shares of Booker's $7.00 par value common stock.
On January 1, 2024, holders of 70% of the bonds exercised the privilege, and converted their bonds into Booker common stock. The journal entry to record the conversion will include a credit to ""Paid in Capital in Excess of Par - Common"" of ______
To calculate the credit to "Paid in Capital in Excess of Par - Common" account, we need to first calculate the number of shares issued and then multiply the same with the excess of the conversion price over the par value of shares issued.
Firstly, we need to calculate the number of shares issued:Number of Bonds converted = 70% of $9,000,000 = $6,300,000Therefore, Number of shares issued = $6,300,000 ÷ $1,000 per bond × 30 shares per bond= 189,000 sharesNext, we need to calculate the excess of conversion price over the par value of shares issued:Conversion Price = $1,000 ÷ 30 shares = $33.33 per sharePar value of shares issued = 189,000 shares × $7 par value per share= $1,323,000Therefore, the excess of conversion price over par value of shares issued = 189,000 shares × ($33.33 - $7) per share= $10,122,300Thus, the journal entry to record the conversion will include a credit to "Paid in Capital in Excess of Par - Common" of $10,122,300. Convertible bonds are a type of security that provides the bondholder with the option to convert the bond into a specific number of shares of the issuer's common stock. This option is generally given to the bondholder as an incentive to purchase the bond at a lower yield than they would otherwise demand. In the given scenario, Booker Corp. issued $9 million of ten year bonds that were convertible into 30 shares of Booker's $7.00 par value common stock each. On January 1, 2024, holders of 70% of the bonds exercised the privilege, and converted their bonds into Booker common stock. The journal entry to record the conversion will include a credit to "Paid in Capital in Excess of Par - Common" of $10,122,300.
The calculation is done by first calculating the number of shares issued and then multiplying the same with the excess of the conversion price over the par value of shares issued.
Learn more about Convertible bonds here:
brainly.com/question/31358643
#SPJ11
What is the formula for calculating working capital (WC)?
Working capital (WC) is the capital available to finance the day-to-day activities of an organization.
It is a measure of an organization's short-term liquidity, i.e., its ability to pay off its current liabilities using its current assets.
The formula for calculating working capital (WC) is as follows
:Working capital (WC) = Current assets - Current liabilities
Current assets are assets that can be converted into cash within a year, while current liabilities are liabilities that are due within a year.
Examples of current assets include cash, accounts receivable, and inventory, while examples of current liabilities include accounts payable and short-term loans
Learn more about liability at:
https://brainly.com/question/17647877
#SPJ11
Assuming a stock sells for $71 and paid a $2 dividend yesterday, what is the stock's capital gains yield if it's dividends are expected to grow at 5.5% each year for the foreseeable future?
Given that the stock sells for $71 and paid a $2 dividend yesterday, we need to calculate the capital gains yield if its dividends are expected to grow at 5.5% each year for the foreseeable future.
Capital gains yield is the return on an investment generated by an increase in the stock price. We can calculate the capital gains yield using the following formula: Capital gains yield = (P1 - P0) / P0Where, P0 = initial price, P1 = final price won't have the final price. But we can assume that the stock price will grow at the same rate as the dividends. So the new price will be: P1 = P0 (1 + g)Here, g is the dividend growth rate.
It is given that dividends are expected to grow at 5.5% each year. Therefore, g = 0.055. Substituting the values of P0 and P1 in the above formula, we get: Capital gains yield = ($71(1 + 0.055) - $71) / $71= ($74.61 - $71) / $71= $3.61 / $71= 0.0509 or 5.09% Therefore, the stock's capital gains yield is 5.09% if its dividends are expected to grow at 5.5% each year for the foreseeable future.
To know more about stock price please refer:
https://brainly.com/question/28539863
#SPJ11
（1）The firm’s interest in the venture can be sold after three
years with an estimated after-tax salvage value of $9 million.What
is the IRR of this investment?
A,15.3%
B,14.1%
C,19.7%
The correct answer is option b. The IRR of the investment is 14.1%.
The firm’s interest in the venture can be sold after three years with an estimated after-tax salvage value of $9 million.
To determine the IRR of this investment, the following formula can be used: IRR = r + NPVn / A × {1 − [(1 + r)⁻ⁿ]} Where: NPVn is the net present value of cash flows at period n.
A is the initial cash investment. r is the interest rate or discount rate.
The initial investment in the venture is $12 million.
The cash inflows from the venture for the next three years are expected to be $5 million, $6 million, and $8 million, respectively, and the after-tax cash outflow is expected to be $1 million.
The calculation of the IRR is as follows: NPV = ($5,000,000 ÷ (1 + r)¹) + ($6,000,000 ÷ (1 + r)²) + ($8,000,000 ÷ (1 + r)³) − ($1,000,000 ÷ (1 + r)³)− $12,000,000
The equation is equal to 0 = NPV, and the solution for r in this equation will give the IRR of the investment.
The IRR of the investment is 14.1%.
Therefore, the correct option is (B) 14.1%.
know more about net present value
https://brainly.com/question/32720837
#SPJ11
under perfect competition, the efficient level of output is produced because a. government regulates the output level that must be produced. b. firms can earn an economic profit in the long run. c. firms earn only a normal profit in the long run. d. price equals marginal cost.
Under perfect competition, the efficient level of output is produced because d. price equals marginal cost.
Why does the efficient level of output occur under perfect competition?In perfect competition, the efficient level of output is produced when price equals marginal cost. This condition ensures that resources are allocated in the most efficient manner and maximizes overall social welfare.
When price equals marginal cost, it means that the cost of producing an additional unit of output is equal to the price at which the product is sold. This equilibrium condition signals that firms are producing the optimal quantity of goods and services to satisfy consumer demand while minimizing production costs.
Read more about perfect competition
brainly.com/question/4190313
#SPJ4
Under perfect competition, the efficient level of output is produced because price equals marginal cost. Option D is correct
The concept of perfect competitionPrice is determined by the interaction of market forces, specifically the forces of supply and demand, in a market with perfect competition.
Every company in the market is a price taker, which means they have no control over the price and are forced to accept the going rate. When the market price and the marginal cost of production are identical, the output is at its most efficient level.
At this level, enterprises are producing goods and services in a way that optimizes social welfare while resources are allocated optimally. There is an incentive to expand output when the price is higher than the marginal cost, whereas there is an incentive to decrease production when the price is lower than the marginal cost. under order to produce at the level where the price matches the marginal cost under perfect competition to achieve efficiency.
Learn more on perfect competition here: https://brainly.com/question/4190313
#SPJ4
An Incorporation is considering a new three-year expansion project that requires an initial fixed asset investment of $2,400,000. The fixed asset will be depreciated straight- line to zero over its three-year tax life. The project is estimated to generate $3,030,000 in annual sales, with costs of $2,030,000. The project requires an initial investment in net working capital of $168,000 and the fixed asset will have a market value of $203,000 at the end of the project. Assume that the tax rate is 23 percent and the required return on the project is 10 percent. a. What are the net cash flows of the project each year? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a. The net cash flows of the project each year are as follows: Year 0: -$2,400,000 (initial investment and net working capital), Year 1: $531,900, Year 2: $531,900, Year 3: $531,900, and Year 4: $734,600.
b. The NPV of the project is $171,873.09.
To calculate the net cash flows of the project each year, we need to consider the sales, costs, depreciation, taxes, and salvage value. In Year 0, there is an initial investment of -$2,400,000 for the fixed asset and -$168,000 for the net working capital. In Years 1, 2, and 3, the net cash flow is calculated by subtracting the costs from the sales, considering the tax rate of 23 percent, and adding back the depreciation expense. In Year 4, the net cash flow includes the salvage value of $203,000, which is the market value of the fixed asset at the end of the project. The calculations result in the following net cash flows: Year 0: -$2,400,000, Year 1: $531,900, Year 2: $531,900, Year 3: $531,900, and Year 4: $734,600.
To calculate the NPV of the project, we discount the net cash flows at the required return of 10 percent. The NPV formula is the sum of the present values of the cash flows. Using the cash flows calculated in part (a) and the required return of 10 percent, the NPV of the project is $171,873.09.
To learn more about costs click here:
brainly.com/question/17120857
#SPJ11
How would you describe Brad Smith’s leadership style? Which
leadership concepts, models, or theories best reflect how he
leads?
ricky griffin fundamentals of management
Chapter 11 case management at
Brad Smith, the former CEO of Intuit, has a collaborative leadership style. His leadership style prioritizes creativity, collaboration, and customer-driven approaches to problem-solving. This is evident in how he runs Intuit, where he focuses on creating an environment of openness and trust that encourages innovation and fosters creativity.
Brad Smith's leadership style is primarily based on the transformational leadership theory. Transformational leadership is a leadership approach in which leaders work with their followers to identify the needed change, create a vision to guide the change through inspiration and execute the change with the commitment of everyone involved.
Brad Smith believes in working collaboratively with his employees to create and execute a shared vision. Smith emphasizes the need to provide employees with a sense of purpose and empower them to be decision-makers, and lead from the front to establish a positive work culture where collaboration and innovation thrive.
In addition, Brad Smith uses the servant leadership model where leaders serve their followers. This model requires leaders to be compassionate and committed to their team members, thus providing an environment where team members can flourish.
Brad Smith's leadership approach has been a great success, resulting in Intuit's revenue increasing from $2.7 billion to $6.8 billion during his tenure.
To know more about leadership visit:
https://brainly.com/question/32010814
#SPJ11
In ________ a neutral person investigates a complaint and develops findings that may be the basis for resolving an employee complaint.
a. training in employment discrimination
b. more than half
c. fact finding
d. job applicants
Answer:
I believe the answer is C. fact finding
In option c. fact finding, a neutral person investigates a complaint and develops findings that may be the basis for resolving an employee complaint.
Fact-finding is the process of conducting a comprehensive examination or investigation of an issue or dispute with the goal of producing a neutral, impartial report of relevant evidence. Fact-finding is often employed in labor disputes, contract disputes, or other types of disputes. Fact-finding provides an independent investigation that can be used by parties to reach an agreement, or by a court or arbitrator to decide an issue in a case. In cases of workplace disputes, fact-finding is used to investigate complaints of discrimination, harassment, or other types of misconduct.
Fact-finding can help identify the relevant facts and evidence in a case, provide a neutral perspective on the situation, and develop findings that may be used to resolve the dispute. Often, a neutral third party, such as an investigator or mediator, will conduct the fact-finding investigation to ensure that the process is impartial and unbiased.
To know more about employee click here:
https://brainly.com/question/18633637
#SPJ11
For which of the following matters should an auditor obtain written management representations?
(a) Management's cost-benefit justifications for correcting internal control weaknesses.
(b) Management's knowledge of future plans that may affect the price of the entity's stock.
(c) Management's knowledge of allegations of fraud or suspected fraud affecting the entity.
(d) Management's acknowledgment of its responsibilities for employee's violations of laws.
An auditor is responsible for the evaluation of an entity's financial statements for the purpose of expressing an opinion on the financial statements.
While conducting an audit, an auditor needs to obtain a written management representation on several matters that may be important for the audit to ensure that the auditor has a proper understanding of the business and financial affairs of the entity.
Below mentioned are some of the matters for which the auditor needs to obtain written management representation-
(a) Management's cost-benefit justifications for correcting internal control weaknesses: It is the responsibility of management to assess the risks and benefits of establishing and maintaining effective internal control over financial reporting and ensuring that these controls are maintained. The auditor needs to obtain written management representations about management's cost-benefit justifications for correcting internal control weaknesses to understand the significance of control weaknesses and its effect on the audit.
(b) Management's knowledge of future plans that may affect the price of the entity's stock: The auditor needs to obtain written management representation to confirm that management has provided the auditor with the information required to determine the impact of future plans on the financial statements.
(c) Management's knowledge of allegations of fraud or suspected fraud affecting the entity: It is essential for the auditor to obtain written management representation to confirm that the management has disclosed all information about fraud or suspected fraud affecting the entity.
(d) Management's acknowledgment of its responsibilities for employee's violations of laws: The auditor needs to obtain written management representation about the acknowledgment of the management regarding its responsibilities for employee's violations of laws to understand the legal implications that may arise due to non-compliance with the laws.
In conclusion, an auditor needs to obtain written management representations for various matters to gain a better understanding of the entity's financial affairs and to provide a reasonable opinion on the financial statements.
To know more about auditor visit:
https://brainly.com/question/32632603
#SPJ11
Assuming the theory of purchasing power parity holds, what is the exchange rate between the United States and Mexico if the price of an identical avocado costs $2 in the United States and 40 pesos in Mexico?
A. 40.00 pesos per dollar
B. 20.00 pesos per dollar
C. 2.00 pesos per dollar
D. 0.05 pesos per dollar
E. 32.50 pesos per dollar
Option B: The exchange rate between the United States and Mexico is 20 pesos/dollar.
Purchasing power parity (PPP) states that exchange rates among currencies are in equilibrium when their purchasing power is the same in each of the two countries. Therefore, assuming PPP holds, the exchange rate between the United States and Mexico if the price of an identical avocado costs $2 in the United States and 40 pesos in Mexico is option B. 20.00 pesos per dollar.
How to solve for the exchange rate:
Since PPP holds:
Price in USD/Exchange Rate = Price in MXN/Exchange Rate2/Exchange Rate
= 40Exchange Rate
= 40/2Exchange Rate
= 20 pesos/dollar
Thus, the exchange rate between the United States and Mexico is 20 pesos/dollar.
Learn more about exchange rate here:
https://brainly.com/question/30461560
#SPJ11
jerry wants to rent out living space to a tenant. he wants the benefit of steady rent payments and the ease of evicting the tenant when he feels it would be convenient. jerry also wants to formalize the tenancy with a rental agreement so that his rights and privileges are explicitly accounted for and agreed to in writing. which form of tenancy should jerry use in renting out his space?
Jerry should use a fixed-term tenancy in renting out his space.
A fixed-term tenancy, also known as a lease agreement, would be the most suitable form of tenancy for Jerry's needs. With a fixed-term tenancy, Jerry can have the benefit of steady rent payments as the tenant agrees to pay rent for a specific period, usually for a year or more.
This provides Jerry with stability and predictability in terms of rental income. Additionally, a fixed-term tenancy allows for easier eviction when necessary, as it typically includes provisions for termination at the end of the agreed-upon term.
Furthermore, by formalizing the tenancy with a written rental agreement, Jerry can ensure that his rights and privileges as a landlord are explicitly stated and agreed upon by both parties, providing clarity and legal protection.
learn more about fixed-term tenancy here:
https://brainly.com/question/32449250
#SPJ11
FILL IN THE BLANK. employees’ ability to choose among several types and styles of desk chairs:
The given statement will be: Employees' ability to choose among several types and styles of desk chairs: Increases job satisfaction.
There are various factors that impact job satisfaction, and one of them is employees' ability to choose among several types and styles of desk chairs. The statement shows that when employees are provided with the choice to choose among several types and styles of desk chairs, they are more likely to be satisfied with their jobs.
Hence, job satisfaction increases.Therefore, it can be concluded that the employees' ability to choose among several types and styles of desk chairs increases job satisfaction.
For more about Employees' ability:
https://brainly.com/question/3521882
#SPJ11
QuickBooks considers all of the following to be vendors
except:
Utility companies
All the choices are correct
Tax agencies such as the IRS
Leasing companies
QuickBooks considers all of the following to be vendors except tax agencies such as the IRS.
QuickBooks is a cloud-based accounting program that assists small businesses in keeping track of their finances. QuickBooks is an accounting software package created by Intuit that is geared toward small and medium-sized companies.
QuickBooks has become the industry standard for accounting software. It has evolved into a wide range of financial management software that assists businesses in organizing their bookkeeping activities.
To know more about IRS visit:
https://brainly.com/question/13280823
#SPJ11
Demand, supply and elasticities - products classification and
impact on industries
Demand, supply, and elasticities are significant terms in economics that can affect the classification of products and have a significant impact on industries. In this context, we will discuss the effect of these terms on product classification and their impact on industries.
Product classification is crucial in understanding market behavior and determining pricing and marketing strategies. Products can be classified into two categories: elastic and inelastic. Elastic products are those that are highly sensitive to changes in price, while inelastic products are less sensitive to price changes.
Demand elasticity refers to the change in the quantity of a product demanded due to changes in its price. If the demand for a product is highly elastic, a small change in its price will result in a significant change in the quantity demanded. In contrast, if the demand for a product is inelastic, a change in its price will not have a significant effect on the quantity demanded.
Similarly, supply elasticity refers to the change in the quantity of a product supplied due to changes in its price. If the supply of a product is highly elastic, a small change in its price will result in a significant change in the quantity supplied. In contrast, if the supply of a product is inelastic, a change in its price will not have a significant effect on the quantity supplied.
These elasticities have significant impacts on industries. For example, if the demand for a product is highly elastic, a small increase in its price will result in a significant decrease in demand. This means that the industry producing that product will have to reduce its prices to maintain demand. Similarly, if the supply of a product is highly elastic, a small decrease in its price will result in a significant increase in supply. This means that the industry producing that product will have to increase its prices to maintain supply.
In conclusion, demand, supply, and elasticities are crucial terms in economics that affect the classification of products and have significant impacts on industries. The understanding of these terms can help businesses to develop effective pricing and marketing strategies.
To know more about impact visit :
https://brainly.com/question/10228184
#SPJ11
1. Maria Rodrigues, who works in the finance department of Patches Corporation, was invited to dinner by her parents. Publicly. Patches Corporation seems to be one of the best businesses in the news. However, Maria Rodrigues's analytic work at the office suggests that many of the opportunities are even stronger than reported, and could lead to fabulous gains in the near future. The parents follow the news and are unhappy with their current retirement portfolio. Maria Rodrigues is tempted to advise her his parents to invest in Patches Corporation. Briefly outline the ethical issues faced by Maria Rodrigues.
Maria Rodrigues faces ethical issues in advising her parents to invest in Patches Corporation due to conflicts of interest, potential insider trading, breach of professional confidentiality, and the need to fulfill her fiduciary duty.
How does Maria Rodrigues face ethical issues?Maria Rodrigues faces several ethical issues in advising her parents to invest in Patches Corporation. These include:
1. Conflict of interest: As an employee of Patches Corporation, Maria may have a personal interest in promoting the company's stock to her parents. This conflict of interest can cloud her judgment and compromise her ability to provide unbiased advice.
2. Insider trading: If Maria possesses non-public information about Patches Corporation that could influence her parents' investment decision, using that information to their advantage would be considered insider trading, which is illegal and unethical. It is important for Maria to maintain strict confidentiality and not misuse any confidential information for personal gain.
3. Breach of professional confidentiality: As an employee of Patches Corporation, Maria may have access to sensitive financial information and business strategies. Sharing this information with her parents without proper authorization would violate professional confidentiality and could harm the company's interests.
4. Fiduciary duty: If Maria is a licensed financial professional or holds a position of trust in advising her parents, she has a fiduciary duty to act in their best interests. This duty requires her to provide objective and unbiased advice based on a thorough analysis of their financial goals, risk tolerance, and investment options. Advising them to invest solely in Patches Corporation without considering other suitable investments may breach this duty.
To navigate these ethical issues, Maria should consider recusing herself from advising her parents on investments related to Patches Corporation. Alternatively, she can seek independent advice from a qualified financial professional who has no personal or professional ties to the company. This ensures that her parents receive impartial guidance and helps Maria maintain ethical integrity in her professional role.
Learn more about ethical issues
brainly.com/question/30581257
#SPJ11
What is the approximate LM relation, of a closed economy, if the central bank sets both an interest rate i = 0.04, and inflation expectations +1 = 0.02? Consider the following equations which describe the closed economy from 4. and derive the IS relation: C = 100+ 0.75Y, I = 400+ 0.15Y - 1000 (r + x), G = T= 300, and x = 0.03. Solve the IS-LM model, from 4. and 5., for the equilibrium level of output, consumption and investment.
L = kY - hi is the given LM equation .The LM equation when Interest rate is 0.04 and Inflation rate is 0.02; LM equation- Ky=hi Ky=hiKy =0.004.
L in the LM equation stands for real money demand, Y for income, i for interest rate, k for real money demand's sensitivity to income, and h for real money demand's sensitivity to interest.
The IS equation is Y=C+I+GY
=100+0.75YD+400+0.15Y-1000(r+x)+300Y
=100+0.75(Y-300)+400+0.15Y-1000(r+0.03)+300Y
=100+0.75Y-225+400+0.15Y-1000r-30+300Y
=545+0.90Y-1000rY-0.9Y
=545-1000r0.1Y
=545-1000rY
=5450-10000r
The equilibrium Level of output:
Y=C+I+GY
=100+0.75YD+400+0.15Y-1000(r+x)+300Y
=100+0.75(Y-300)+400+0.15Y-1000(0.04+0.03)+300Y
=100+0.75Y-225+400+0.15Y-70+300Y
=505+0.90YY-0.9Y
=5050.1Y =505Y=1010
Consumption: C=100+0.75(Y-T)
=100+0.75(1010-300)
=100+532.5
=632.5
Investment:- I=400+0.15Y-1000(0.04+0.03)I
=400+0.15(1010)-70I
=400+151.5-70I
=481.5
To learn more on LM equation , here:
https://brainly.com/question/31483397
#SPJ4
If the auditor wants to substantiate the completeness of recorded sales, the auditor should select items for testing from the
Sales invoice file
Sales journal
Shipping document file
Approved sales order file
If the auditor wants to substantiate the completeness of recorded sales, the auditor should select items for testing from the sales invoice file.
To substantiate the completeness of recorded sales, auditors perform testing on sales recorded in the financial statements. They gather data from different sources like sales journals, approved sales order files, sales invoice files, and shipping document files, to name a few.
To determine the completeness of recorded sales, auditors use tests like the cutoff test, sales invoice test, and shipping and handling test. When selecting items for testing, the auditor should choose a sample that represents all significant transactions for the period.
The auditor must choose items for testing that will help confirm whether all the recorded sales have been included. The sales invoice file is usually a key source for confirming sales recorded in the financial statements.
To know more about financial statements click on below link:
https://brainly.com/question/14951563#
#SPJ11
Joshand Hannah, a married couple in their 40’s, are applying for a business loan to help them realise their long-held dream of owning and operating their own fashion boutique. Hannahis a highly promising graduate of a prestigious fashionschool, and Joshis an accomplished accountant. They share astrong entrepreneurial desireto be ‘their own bosses’ and to bring something new and wonderful to their local fashionscene. The outside consultants have reviewed their business plan and assured them that they have a very promising and creative fashionconceptand the skills needed toimplement it successfully. The consultants tell them they should have no problemgetting a loan to get the business off the ground. For evaluating loan applications, Joshand Hannah’s local bank loan officer relies on an off-the-shelf software package that synthesises a wide range of data profiles purchased from hundreds of private data brokers. As a result, it has access to information about Joshand Hannah’s lives that goes well beyond what they were askedto disclose on their loan application. Some of this information is clearly relevant to the application, such as their on-time bill payment history. But a lot of the data usedby the system’s algorithms is of the kindthat no human loan officerswouldnormally think to lookat, or have access to—including inferences from their drugstore purchases about their likely medical histories, information from online genetic registries about health risk factors in their extended families, data about the books they read and the movies they watch, and inferences about their racial background. Much of the information is accurate, but some of it is not. A few days after they apply, Joshand Hannahget a call from the loan officer saying their loan was not approved. When they ask why, they are told simply that the loan system rated them as ‘moderate-to-high risk.’ When they ask for more information, the loan officer says he doesnot have any, and that the software company that built their loan system will not revealany specifics about the proprietary algorithm or the datasources it draws from, or whether that data was even validated. In fact, they are told, not even the developers of the systemknow how thedata led it to reach any particular result; they can say isthat statistically speaking, the system is ‘generally’ reliable. Joshand Hannahask if they can appeal the decision, but they are told that there is no means of appeal, since the system will simply process their application again using the same algorithmand data, and will reach the same result.
a) What sort of ethically significant benefits could come from banks using a big-datadriven system to evaluate loan applications?
b) What ethically significant harms might Joshand Hannahhave suffered as a result of their loan denial? Discuss at least threepossible ethically significant harms that you think are most important to their significant life interests.
a) The ethically significant benefits that could come from banks using a big data driven system includes evaluation, improve quality, less fraudulent activities, valuable insights. b) The ethically significant harms that Josh and Hannah might have suffered as a result of their loan denial are: loss of opportunity, dignity and transparency and discrimination.
a) The ethically significant benefits that could come from banks using a big data driven system to evaluate loan applications are as follows:
It helps banks to evaluate loan applications in a consistent and unbiased manner.The use of Big Data allows lenders to improve the overall quality of their loan portfolios and increase their profits.It can be used to identify fraudulent applications or applications from people who are likely to default.It can help banks to provide loans to borrowers who may not otherwise qualify for them based on their credit scores.It can provide banks with valuable insights into market trends and consumer behavior patterns, which can help them to develop new products and services.b) The ethically significant harms that Josh and Hannah might have suffered as a result of their loan denial are as follows:
Loss of Opportunity: They may not be able to pursue their dream of owning and operating their own fashion boutique due to lack of funds.Loss of dignity: The denial of the loan may be perceived by Josh and Hannah as an insult to their intelligence and reputation. They might feel humiliated and frustrated.Lack of transparency: The loan officer could not provide them with the specific reasons for the denial of their loan application, which can lead to mistrust in the system, feelings of frustration and a lack of control over their own fate.Discrimination: Josh and Hannah's race, genetic history, and other irrelevant factors could have influenced the decision of the software, which may be unfair and discriminatory.Learn more about big data here: https://brainly.com/question/28333051
#SPJ11
a company implements a new information system and observes a 5 percent increase in its monthly sales. this is a(n) ________ of the system.
A company implements a new information system and observes a 5 percent increase in its monthly sales. This is a benefit of the system.
The increase in monthly sales is considered a benefit for the company because it helps the company increase its profits and revenue. An information system helps companies automate their processes and make data-driven decisions. This helps companies become more efficient and effective in their operations.
The information system likely contributes to improving the company's operational efficiency, data management, decision-making processes, or customer interactions, resulting in increased sales. This increase can be attributed to various factors, such as better inventory management, improved customer relationship management, enhanced data analysis capabilities, or streamlined processes enabled by the information system. Overall, the observed increase in sales demonstrates the effectiveness and value of the implemented information system in driving business growth and generating positive outcomes for the company.
To learn more about company: https://brainly.com/question/24553900
#SPJ11
For the year ended 30 June 2022, the following information is available for Scan Ltd: 2022 2021 Dividend payable 13,000 10,000 Bank loan 100,000 80,000 Share Capital 250,000 200,000 Retained earnings 45,000 36,000 Profit after tax 20,000 Additional information: A bonus share dividend of $5,000 and a cash interim dividend were paid during the year. Repayments of $45,000 on the bank loan were made during the year. Further loans were taken out, partly to cover the cost of a new vehicle for $30,000 and the remainder to inject cash into the business. Land was purchased, partly paid for by issuing $30,000 shares. Required: a) Calculate the net cash used in financing activities. b) Present the cash flows in the correct format.
The net cash used in financing activities is $113,000 and the cash flows in the correct format is $143,000.
a) Net cash used in financing activities:
Net cash used in financing activities includes the cash inflows and outflows from the company's financial activities. For the year ended 30 June 2022, the net cash used in financing activities is calculated as follows:
Net Cash used in Financing Activities
= Dividend payable 2022 - Dividend payable 2021
= 13,000 – 10,000
= $3,000
Net cash raised from the bank loan
= (100,000 - 80,000) + 45,000 - 30,000
= $35,000
Net cash raised from the issue of shares
= (250,000 - 200,000) + 30,000
= $80,000
Cash used to pay bonus dividend= $5,000
Net Cash Used in Financing Activities
= Dividend payable 2022 - Dividend payable 2021 + Net cash raised from the bank loan + Net cash raised from the issue of shares - Cash used to pay bonus dividend
= 13,000 - 10,000 + 35,000 + 80,000 - 5,000
= $113,000
b) Cash flows in the correct format:
Cash flows from operating activities:
Profit after tax= $20,000
Adjustments to reconcile profit to net cash inflow from operating activities:
Depreciation= $10,000
Cash flows from operating activities
= Profit after tax + Depreciation
= 20,000 + 10,000
= $30,000
Cash flows from investing activities:
Purchase of land= ($30,000)
Purchase of vehicle= ($30,000)
Cash flows from investing activities
= (30,000 + 30,000)
= ($60,000)
Net cash used in investing activities= ($60,000)
Cash flows from financing activities:
Net Cash Used in Financing Activities= ($113,000)
Net increase in cash and cash equivalents
= Cash flows from operating activities + Cash flows from investing activities + Cash flows from financing activities
= 30,000 - 60,000 - 113,000
= ($143,000)
Therefore, the net decrease in cash and cash equivalents is $143,000.
Learn more about the cash flow from the given link-
https://brainly.com/question/10922478
#SPJ11
(a) Define shirking. In the Shapiro-Stiglitz model, does a worker benefit from shirking? Explain, using algebra and words in your answer. (15 marks) Answer: Marker Moderator (b) Algebraically state the monetary rule in the Three Equation Model, MR. Fully explain how this monetary rule helps the monetary policymaker choose its nominal policy rate i. (10 marks)
Shirking is a term used to define situations where employees are not putting in maximum effort or output into their work. This may be due to a variety of reasons such as dissatisfaction, lack of motivation, or lack of supervision. The Shapiro-Stiglitz model is used to analyze the effects of asymmetric information in the labor market. In this model, a worker does not benefit from shirking as it reduces their productivity, leading to a lower wage rate.
The utility function of the worker is given by U = U(c,l) where c is the worker's consumption and l is their leisure time. The wage rate is given by w = F(L, z) where L is labor input and z is the level of effort by the worker. The worker chooses the level of effort that maximizes their utility function. However, since the level of effort is not directly observable by the firm, there is a moral hazard problem. The firm has to pay the wage rate based on the observed output and cannot observe the worker's level of effort. Therefore, a worker who shirks reduces the observed output, leading to a lower wage rate. This reduces the worker's utility, hence they do not benefit from shirking.
The monetary rule in the Three Equation Model is given by MR = pi - π^T + 0.5(y - y^P) where MR is the nominal policy rate, pi is the inflation rate, π^T is the inflation target, y is the output gap, and y^P is the potential output. This rule states that the monetary policymaker should adjust the nominal policy rate based on the deviation of the actual inflation rate from the target inflation rate, the output gap, and potential output. If the inflation rate is higher than the target, the nominal policy rate should be increased to reduce demand and hence inflation. If the output gap is positive, this indicates excess demand in the economy and hence the nominal policy rate should be increased to reduce demand and avoid inflation. Conversely, if the output gap is negative, indicating a recession, the nominal policy rate should be decreased to stimulate demand and hence output. The monetary rule helps the monetary policymaker choose its nominal policy rate i by providing a systematic and transparent framework for policy decisions. The rule is based on economic theory and empirical evidence and provides clear guidance on how to adjust the policy rate in response to changes in inflation and output.
To know more about employees visit:
https://brainly.com/question/18633637
#SPJ11
journalize and post closing entries and complete the closing
process
On August 1, 2022, the following were the account balances of Sarasota Repair Services. Cash Accounts Receivable Notes Receivable Supplies Equipment Aug. 1 3 Debit 5 $6,280 3,030 4,200 1,070 10,400 Du
The closing entries for the account balances of Sarasota Repair Services, journalize, and post-closing entries can be listed as follows: Closing entries are journal entries that are prepared at the end of an accounting period to close temporary accounts and transfer their balances to a permanent account such as retained earnings.
Closing entries make the company's financial statements for the current accounting period completely accurate and begin the company's bookkeeping for the upcoming accounting period.
Journal Entries Date Particulars Debit Credit 1-Aug
Cash 6,280 Accounts Receivable 3,030
Notes Receivable 4,200 Supplies 1,070
Equipment 10,400 Sarasota Repair Services Income Summary 25,98025,980 31-Aug
Sarasota Repair Services Income Summary 15,900 Supplies Expense 3,890 Rent Expense 2,300 Wages Expense 3,540 Depreciation Expense 1,740 Accounts Receivable 1,880 Notes Receivable 2,400 Cash 11,90031-Aug
Retained Earnings 15,90015,900 (Note: All expenses are transferred to Income Summary account.)
Post-Closing Entries Date Particulars Debit Credit 31-Aug Cash 11,900 Accounts Receivable 3,030 Notes Receivable 1,080 Supplies 3,200 Equipment 10,400 Retained Earnings 15,90015,900
(Note: Only the balances of permanent accounts are included in post-closing entries.)
For more question on retained earnings
https://brainly.com/question/25631040
#SPJ8
Explain whether each of the following statements is true, false, or could go ether way depending on the circumstances. If a question has more than one part, please explain why each part is true, faise, or uncertan Use the analyscal tools learned in this course to back up your answers, EXPLANATION DETERMINES MARKS
1. In the US currently, since the nominal interest rate is virtually zero, the real interest rate has to be negative.
2. The fall employment level of output is the output level corresponding to an unemployment rate of zero.
3. On January 1 2015, you bought 10 gallons of petrol at GHC 15 per gallon The filling station purchased the petrol the previous week at wholesale price of GHC 12 per gallon. The contribution of this transaction to GDP in 2015 is GHC 150.
4. If in a given year the profits of US based Toyota increase; this will contribute to the US GNP for that year.
5. The Monetary Policy Committee of the Bank of Ghana after its meeting in November 2015 increased the monetary polity rate from 25% to 26%. This represents a 1% increase the monetary policy rate
6. The recent reduction in the monetary policy rate from 23.4% to 22.5% represents an expansionary monetary policy because it seeks to increase the money supply.
7. According the 2016 Budget Statement for Ghana presented on November 13, 2015, total government expenditure for 2016 is projected to be GHC 46,445.7 million, representing 16.6% increase over the expenditure in 2015. This represents a tightening of monetary policy.
8. The overall budget deficit for 2016 is expected to be 5.3% of GDP compared with a year-end 7.3% for 2015. In the goods market this will lead to an increase
9. in the real interest rate. If banks introduce home equiry lines of credit that allow homeowners to write checks against the value of their homes it will increase the demand for money.
1. TRUE 2. FALSE 3. FALSE 4. FALSE 5. TRUE 6. FALSE 7. FALSE 8. FALSE 9. TRUE
1.The real interest rate equals the nominal interest rate minus the expected inflation rate. If the nominal interest rate is zero, then the real interest rate must be negative if the expected inflation rate is positive.
2. The natural rate of unemployment is the unemployment rate that arises from normal frictions in the labor market. The fall employment level of output is the output level corresponding to the natural rate of unemployment, not zero unemployment.
3. The purchase of gasoline by a consumer is a consumption expenditure, not a contribution to GDP.
4. The profits of US-based Toyota contribute to Japan's GNP, not the US GNP.
5. An increase in the monetary policy rate represents a contractionary monetary policy.
6. A reduction in the monetary policy rate represents an expansionary monetary policy because it seeks to lower interest rates and increase the money supply.
7. An increase in government expenditure represents an expansionary fiscal policy, not a tightening of monetary policy.
8. A decrease in the budget deficit represents a contractionary fiscal policy, not an increase in the real interest rate.
9. The introduction of home equity lines of credit increases the supply of money, which lowers the equilibrium interest rate and increases the quantity of money demanded.
Learn more about Unemployment rate: https://brainly.com/question/13280244
#SPJ11
On January 1, 2020, Canadian Co. acquired a 70 percent interest
in a Swiss company, for SF500,000. On that date, the exchange rate
was SF1 = C$1.07. Swiss Co is an integrated foreign operation
(i.e.,
On January 1, 2020, Canadian Co. acquired a 70 percent interest in a Swiss company, for SF500,000. On that date, the exchange rate was SF1 = C$1.07. Swiss Co is an integrated foreign operation (i.e., a subsidiary that maintains its accounting records in Swiss francs, which are its functional currency).
During 2020, Swiss Co reported a net income of SF80,000 and declared dividends of SF20,000 on July 1 and December 31. The exchange rates during 2020 were:Average for the year SF1 = C$1.05December 31, 2020 SF1 = C$1.02Prepare the journal entries that Canadian Co. should make in 2020, and provide the appropriate translation adjustments and gain or loss accounts required by IFRS. Assume that Canadian Co. applies the cost method and that it uses the temporal method to translate Swiss Co.’s financial statements to Canadian dollars.Under the cost method, the investment is initially recorded at cost (SF500,000 × C$1.07 = C$535,000).
Any dividends received are recorded as dividend income. At year-end, the investment’s carrying amount is compared with its fair value, and any impairment is recognized under IFRS. In this case, the investment’s carrying amount (in Swiss francs) is SF350,000 (70 percent × SF500,000) plus the dividends of SF20,000 received during the year, or SF370,000. The investment’s fair value (in Canadian dollars) at December 31, 2020, is SF350,000 × C$1.02 = C$357,000.
The temporal method is used to translate Swiss Co.’s financial statements because the Canadian dollar is the functional currency of Canadian Co. under IFRS. Under this method, monetary assets and liabilities are translated at the current exchange rate (SF1 = C$1.02), while nonmonetary assets and liabilities are translated at historical exchange rates. Revenues, expenses, gains, and losses are translated at the exchange rate in effect at the time they are recognized. The translation gains or losses are recorded in a cumulative translation adjustment (CTA) account, a separate component of other comprehensive income. In this case, translation gains or losses result from translating Swiss Co.’s financial statements from Swiss francs to Canadian dollars.On January 1, 2020, the investment in Swiss Co. is recorded at cost: Dr. Investment in Swiss Co. (at cost) C$535,000 Cr. Cash (C$535,000)During 2020, dividend income is recorded: Dr. Dividend income (C$28,000) Cr.
Investment in Swiss Co. (at cost) (C$28,000)At December 31, 2020,
Swiss Co.’s financial statements are translated to Canadian dollars as follows: Balance Sheet (December 31, 2020) Income Statement (for year ended December 31, 2020) (SF) (C$) (SF) (C$) Cash 105,000 102,900 Revenues 140,000 134,400 Accounts receivable 40,000 38,800 Cost of sales (80,000) (76,800) Inventory 100,000 97,800.
Gross profit 60,000 57,600 Property, plant, and equipment (net) 700,000 679,000 Selling and administrative expenses (20,000) (19,200) Total assets 945,000 916,100 Income before taxes 40,000 38,400 Accounts payable 65,000 63,100 Income tax expense (20,000) (19,200) Dividends declared (20,000) (19,400).
Total liabilities 85,000 82,700 Net income 20,000 19,200 Common shares 450,000 436,500 Retained earnings 410,000 397,900 Total equity 860,000 834,400 Total liabilities and equity 945,000 916,100At December 31, 2020,
the investment in Swiss Co. is adjusted to fair value: Dr. Investment in Swiss Co. (at cost) (C$370,000) Dr. Unrealized gain on investment in Swiss Co. (C$13,000) Cr. Gain on investment in Swiss Co. (C$13,000) Cr. Investment in Swiss Co. (at fair value) (C$357,000)Unrealized gain on investment in Swiss Co. (CTA) is recorded in accumulated other comprehensive income: Dr. Unrealized gain on investment in Swiss Co. (CTA) (C$13,000) Cr. Accumulated other comprehensive income (C$13,000).
Under IFRS, investment in is initially recorded at cost and subsequently adjusted to fair value under the cost or equity method. Under the poral method of translation, monetary assets and liabilities are translated at the current exchange rate, while nonmonetary assets and liabilities are translated at historical exchange rates. Revenues, expenses, gains, and losses are translated at the exchange rate in effect at the time they are recognized. The translation gains or losses are recorded in a cumulative translation adjustment (CTA) account, a separate component of other comprehensive income.
Learn more about Swiss company visit:
brainly.com/question/30079092
#SPJ11
Consider the central bank balance sheet for the country of Riqueza. Riqueza current has $2,000 million escudos in its money supply, $1,300 million of which is backed b domestic government bonds; the rest is backed by foreign exchange reserves. Assum that Riqueza maintains a fixed exchange rate of 1 escudo per dollar, the foreign interest rate remains unchanged, and money demand takes the usual form, M/P L(i) Y Assume prices are sticky.
Show Riqueza's central bank balance sheet, assuming there are no private banks. What is the backing ratio?
The backing ratio for Riqueza is 1.857
The central bank balance sheet for Riqueza is as follows:AssetsLiabilitiesDomestic government bondsForeign exchange reservesCurrency in circulationTotal2,000 million escudos1,300 million escudos700 million escudos2,000 million escudosThe backing ratio is calculated as follows:
Backing ratio = (Domestic government bonds + Foreign exchange reserves) / Currency in circulation= (1,300 million escudos + (2,000 million escudos – 1,300 million escudos)) / 700 million escudos= 1.857
Therefore, the backing ratio for Riqueza is 1.857. This indicates that the central bank has more than sufficient reserves to back the country's money supply. This is because the backing ratio is greater than 1, which is the minimum required for the central bank to maintain a fixed exchange rate.
In other words, Riqueza's central bank is capable of intervening in the foreign exchange market to maintain the fixed exchange rate of 1 escudo per dollar.
This also means that Riqueza's central bank can afford to purchase additional foreign exchange reserves or domestic government bonds in order to expand the money supply if necessary.
Additionally, since prices are sticky, this suggests that any changes in the money supply will have a real effect on output and employment levels in the short run, but not in the long run.
For more question on backing ratio visit:
https://brainly.com/question/31683643
#SPJ8
The graph depicts the following situation: A consumer consumes good x and good y. She initially has an income of I=$150, and faces prices of px=$1 and py=$3. Then, the price of good x doubles. In response to the rising prices, the government gives the consumer a lump-sum payment of $30. What do points z and k in the graph stand for?
A. z=$100 and k=$150
B. z=75 units of good x and k=150 units of good y
C. z=50 units of good x and k=$150
D. z=75 units of good x and k=60 units of good y
E. None of the above
None of them accurately represent points z and k in the graph. Therefore, the correct answer is None of the above, option E is correct.
Based on the given information, we can determine the meanings of points z and k in the graph. Point z represents the initial consumption bundle before any changes occur. The consumer has an income of $150 and faces prices of px=$1 and py=$3. Since we don't have specific quantities mentioned, we can't determine the exact values for z. Therefore, none of the options provided correctly represent point z.
Point k represents the new consumption bundle after the price of good x doubles and the consumer receives a lump-sum payment of $30 from the government. Therefore, none of the options provided correctly represent point k, option E is correct.
To learn more about graph follow the link:
https://brainly.com/question/10712002
#SPJ4
In an article "Why China is Sticking With Its Covid Zero' Strategy" by Bloomberg on 11 February 2022 the author stated that, "Covid Zero has sent ripples through the global supply chain. Outbreaks have led to temporary production halts at the China based factories of top carmakers in the northern port city of Tianjin for people to undergo mass testing. Foxconn brielly suspended operations at its Shenzhen sites, one of which produces iPhones. The month long lockdown of Xi'an disrupted leading chipmakers Micron Technology Inc and Samsung Electronics Co., while Toyota Motor Corp. and Volkswagen AG had to suspend production at factories in Jilin Note: A ripple effect occurs when an initial disturbance to a system propagates outward to disturb an increasingly larger portion of the system, like ripples expanding across the water when an object is dropped into it. 2220 1b) TOOTO Use the International Production Networks (IPNS) to discuss the "ripple" effect mentioned in the article. TOOTO TO In 2020, the shortage in the supply of N95 face masks in most western countries highlighted just how dependent the West countries had become on production in China. Afterward, The Trump administration initiated a series of policy responses to "decouple from China". In this context, do you believe China could be decoupled from the western countries? If so, which countries will suffer most? If not, why not? 137 T
China cannot be decoupled from Western countries since it will disrupt supply chains and have a significant impact on the world economy is the answer.
In the article "Why China is Sticking With Its Covid Zero' Strategy" by Bloomberg on 11 February 2022, the author reported that China's zero-tolerance policy for COVID-19 has had a ripple effect throughout the global supply chain. The outbreaks led to temporary production halts at China's leading carmakers' factories in the port city of Tianjin. Production at Foxconn facilities, which manufacture iPhones, was briefly suspended. The month-long lockdown in Xi'an disrupted leading chipmakers Micron Technology Inc and Samsung Electronics Co. Production at Toyota Motor Corp. and Volkswagen AG's factories in Jilin was halted. The International Production Networks (IPNs) have been disrupted as a result of these interruptions.
Furthermore, China is a central node in many global supply chains, from automobiles to electronics and textiles, due to its large and well-developed manufacturing base. As a result, the pandemic and China's strict COVID-19 response have disrupted production and trade throughout the world.
The shortage in the supply of N95 face masks in most Western countries in 2020 showed how reliant the West had become on Chinese production. Consequently, the Trump administration began a series of policy responses aimed at "decoupling from China." However, it is difficult to decouple from China, particularly in terms of manufacturing, due to its significant manufacturing base and robust supply chains. As a result, Western nations would find it challenging to decouple from China. In conclusion, China cannot be decoupled from Western countries since it will disrupt supply chains and have a significant impact on the world economy.
know more about supply chains
https://brainly.com/question/29318233
#SPJ11
CASE STUDY - THE COMPLETE ACCOUNTING CYCLE
Name: ___________________________________
This Case Study is worth 100 points, or 10% of your final course grade.
This Case Study relates to TCOs E and F, and Chapters 3 and 4.
MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
There are 10 sheets in the Workbook, including this one.
All of the information that you need for the project is located in this Workbook.
Requirements Sheet in Workbook
Requirement 1—Prepare the Journal Entries in the General Journal Journal Entries
Requirement 2—Post Journal Entries to the General Ledger General Ledger
Requirement 3—Prepare a Trial Balance Trial Balance
Requirement 4—Prepare the Adjusting Entries Adjusting Entries
Requirement 5—Post Adjusting Entries to the General Ledger General Ledger
Requirement 6—Prepare an Adjusted Trial Balance Adjusted Trial Balance
Requirement 7—Prepare the Financial Statements Financial Statements
Requirement 8—Prepare the Closing Entries Closing Entries
Requirement 9—Post Closing Entries to the General Ledger General Ledger
Requirement 10—Prepare the Post Closing Trial Balance Post-Closing Trial Balance
Hint for success: Review the Week 2 and 3 Activities prior to starting this project.
You can hover over the red pointer at the top right-hand corner of the cell to read the hint.
Hints are provided for the following balances:
1) The debits for the journal entries are on the Journal Entries tab.
2) The credits for the journal entries are on the Journal Entries tab.
3) The cash balance is on the General Ledger tab.
4) The debits for the trial balance are on the Trial Balance tab.
5) The credits for the trial balance are on the Trial Balance tab.
6) The debits for the adjusted trial balance are on the Adjusted Trial Balance tab.
7) The credits for the adjusted trial balance are on the Adjusted Trial Balance tab.
8) Net income for the income statement is on the Financial Statements tab.
9) Retained earnings as of July 31 are on the Financial Statements tab.
10) Total assets for the balance sheet are on the Financial Statements tab.
11) Total liabilities and shareholders' equity for the balance sheet are on the Financial Statements tab.
12) The debits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
13) The credits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
The complete accounting cycle is a process that assists in the systematic recording, classification, and summarization of business activities within a specific accounting period. The cycle involves various steps that must be followed in a specific order to ensure that the financial records of the business are accurate.
The complete accounting cycle can be divided into ten different stages: preparing journal entries, posting journal entries to the general ledger, preparing the trial balance, adjusting entries, posting adjusting entries to the general ledger, preparing the adjusted trial balance, preparing the financial statements, closing entries, posting closing entries to the general ledger, and preparing the post-closing trial balance.
Each step in the accounting cycle plays a significant role in ensuring that the financial records of the business are complete and accurate. For instance, preparing journal entries assists in recording all transactions of the business that have occurred during a specific period. It is essential to follow the double-entry system when preparing journal entries to ensure that every transaction is recorded with equal debits and credits. Once the journal entries have been prepared, the next step is to post them to the general ledger, which provides a detailed account of all business transactions. It is necessary to prepare the trial balance after posting all journal entries to ensure that the total debits equal the total credits.
Adjusting entries are made after preparing the trial balance to record expenses and revenues that were not recorded during the initial journal entries. After the adjusting entries have been prepared and posted to the general ledger, the adjusted trial balance is prepared to ensure that the total debits and credits balance. The financial statements are then prepared using the information from the adjusted trial balance.
Finally, the post-closing trial balance is prepared to ensure that all temporary accounts have been closed and that the permanent accounts' balances are correct.
To know more about accurate visit :
https://brainly.com/question/30350489
#SPJ11
Explain why, in the condition for equilibrium, aggregate
demand equal aggregate supply would be same if we say total
leakages must equal to total injections.
Aggregate demand is defined as the total demand for all goods and services produced in an economy while Aggregate supply is the total supply of goods and services produced in an economy.
The equilibrium condition in macroeconomics is when aggregate demand is equal to aggregate supply.
A leakage is the amount of money that leaves the circular flow of income while an injection is the amount of money that enters the circular flow of income. There are three types of leakages which are savings, taxes, and imports.
On the other hand, there are three types of injections which are investments, government spending, and exports.Explanation:In macroeconomics, the circular flow of income model shows the movement of money in an economy. Money is earned by households through factors of production, which is then spent on goods and services produced by firms. Firms, in turn, use the money earned to pay for factors of production.
To know more about aggregate demand. here
https://brainly.com/question/1490249
#SPJ11
A company reports the following amounts in its year-end balance sheet Accounts Receivable of $42,000, Accounts Payable of $34,000, Accumulated Depreciation of $40,000. Buildings of $180,000; Cash of $25,000. Equipment of $90,000; Prepaid Insurance of $10.000: Solaries Payable of $22.000. Office Supplies of $6,000, and Unearned Revenue of $15,000. The dollar amount of current liabilities that will not require a future payment of cash total is $
The dollar amount of current liabilities that will not require a future payment of cash in total is $34,000.
Current liabilities typically represent obligations that are expected to be settled within one year or the operating cycle of the company, whichever is longer. From the given information, Accounts Payable, Salaries Payable, and Unearned Revenue are the current liabilities. Out of these, Unearned Revenue is a liability that does not require a future payment of cash.
Unearned Revenue represents advance payments received from customers for goods or services that have not yet been delivered or performed. Therefore, the amount of Unearned Revenue, which is $15,000, does not require a future payment of cash and is not included in the calculation. Hence, the dollar amount of current liabilities that will not require a future payment of cash in total is $34,000.
Learn more about current liabilities here:
https://brainly.com/question/29341666
#SPJ11