QUESTION ONE You are employed in a firm of Chartered Accountants. Your firm is dealing with the tax affairs of Matimba Ltd, a VAT registered trading company. You are helping the company in preparing the VAT return for the month of May 2019. The directors have heard that a business can account for VAT using the Cash Accounting Scheme and are keen to know Whether Matimba Ltd can register to account for VAT under the cash accounting scheme. You have been provided with the following information relating to the month of May 2019. (1) Sales invoices totaling K2,750,000 were issued to customers out of which exempt sales were K550,000 and zero rated sales were K320,000 with the remainder of the sales being standard rated. Out of the standard rated sales, goods with a value of K350,000 were sold on sale or return basis. These goods were dispatched to the customer on 30 May 2019, however the customer only paid for the goods on 2 June 2019, although he adopted the sale when he received goods. (2) Total Sales returns for the month were K280,000 comprising returns on standard rated sales of K 170,000 , returns on exempt sales of K30,000 and returns on zero rated sales of K80,000. (3) The company received an advance deposit of K85,000 in respect of a standard rated contract that is due for completion in July 2019. The contract has a total value of K150,000. (4) Standard rated purchases were K980,000 and the purchase returns on these purchase amounted to K83,000. (5) Standard rated expenses amounted to K179,800 (VAT inclusive) broken down as follows: (6) The company wrote off a bad debt amounting to K26,000 during the month of May 2019 , in respect of a debt which was due for payment on 31 October 2018. (7) The company bought the following capital assets at the following VAT inclusive costs: (8) All the above figures are VAT inclusive unless stated otherwise. Required (a) Describe the operation of the Cash Accounting Scheme and explain whether Matimba Ltd can register to account for VAT using the cash accounting scheme. (b) Explain any TWO advantages and any TWO disadvantages of accounting for VAT under the cash accounting scheme. (c) Compute the amount of VAT payable for the month of May 2019. (d) State the due date for the payment of the VAT you have computed in (c) above and explain the consequences for the company of paying the VAT late. [Total: 20 Marks]
Answers
(a) The Cash Accounting Scheme allows businessto account for VAT based on when payments are received and made, rather than when invoices are issued.
It is important for businesses to adhere to the VAT payment deadlines to avoid these consequences and maintain a good relationship with the tax authority.
Under this scheme, businesses only need to account for VAT on their sales once the customer has made the payment, and they can reclaim VAT on their purchases once they have made the payment to the supplier.
To determine if Matimba Ltd can register for the Cash Accounting Scheme, we need to consider the eligibility criteria set by the tax authority in the relevant jurisdiction. This information is not provided in the given question, so it is not possible to determine if Matimba Ltd can register for the Cash Accounting Scheme without additional information.
(b) Advantages of accounting for VAT under the Cash Accounting Scheme:1. Improved cash flow: Businesses only need to account for VAT when they have received payment from their customers, which can help improve their cash flow by delaying the payment of VAT to the tax authority.
2. Reduced risk of bad debts: By accounting for VAT when payment is received, businesses can avoid paying VAT on sales that become bad debts if the customer fails to pay.
Disadvantages of accounting for VAT under the Cash Accounting Scheme:1. Limited input tax recovery timing: Businesses can only reclaim VAT on their purchases once they have made the payment to the supplier. This may result in delayed recovery of input tax and potential cash flow implications.
2. Administrative complexity: The Cash Accounting Scheme may require additional administrative efforts to track and account for VAT based on payment receipts and payments made to suppliers.
(c) To compute the amount of VAT payable for the month of May 2019, we need to calculate the VAT on sales and deduct the VAT on purchases.
VAT on sales:Standard rated sales: K2,750,000 - K350,000 (sale or return) = K2,400,000
VAT on standard rated sales: 16/116 * K2,400,000 = K329,655.17
Zero rated sales: K320,000
VAT on zero rated sales: 0 (no VAT on zero rated sales)
Exempt sales: K550,000VAT on exempt sales: 0 (no VAT on exempt sales)
Total VAT on sales: K329,655.17
VAT on purchases:
Standard rated purchases: K980,000VAT on standard rated purchases: 16/116 * K980,000 = K134,482.76
Total VAT payable = VAT on sales - VAT on purchases
= K329,655.17 - K134,482.76 = K195,172.41
The amount of VAT payable for the month of May 2019 is K195,172.41.
(d) The due date for the payment of VAT depends on the tax regulations of the jurisdiction. Without specific information about the jurisdiction, it is not possible to determine the exact due date.
Consequences of paying VAT late may include:
1. Penalties and interest: Late payment of VAT may result in penalties and interest charges imposed by the tax authority.2. Negative impact on reputation: Persistent late payment of VAT can harm the company's reputation and may lead to increased scrutiny from the tax authority.
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Related Questions
Which statement explains how a credit card is a form of financial exchange?
A credit card can be used to pay for goods, and the charges are immediately deducted from the user's account.
A credit card can be used to pay for services, and the user agrees to pay these charges at a later time.
Each credit card has a certain monetary value, which users exchange with each other like currency.
Credit cards are paper documents that users write on to indicate the amount being paid to a merchant.
Answers
Answer:
A credit card can be used to pay for goods, and the charges are immediately deducted from the user's account.
In a no-fault state:
Your right to sue in connection with an automobile accident is limited.
Litigation is limited.
A larger part of premium dollars is used for first party benefits.
Auto accident victim are compensated more rapidly.
All of the above.
Answers
In a no-fault state: the right to sue in connection with an automobile accident is limited; Litigation is limited; A larger part of premium dollars is used for first party benefits; and Auto accident victim are compensated more rapidly. The correct option is E.
In a no-fault state, the right to sue in connection with an automobile accident is limited, meaning that individuals involved in an accident generally cannot sue the other party for damages unless certain thresholds of injury or other specific circumstances are met.
Thus, the ideal selection is option E.
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The complete question might be:
In a no-fault state:
A. Your right to sue in connection with an automobile accident is limited.
B. Litigation is limited.
C. A larger part of premium dollars is used for first-party benefits.
D. Auto accident victims are compensated more rapidly.
E. All of the above.
Help answer these two questions pleaseee
1. Across the course, you've learned about many other desktop publishing software programs besides PowerPoint. Identify at least two other technologies available for desktop publishing (the software can be presentation-based, word processing, spreadsheet software.etc.). What are some common features across PowerPoint and these other programs?
2. What are 2 differences that could be expected in how an employee would speak to other staff members in a truly flat organizational structure compared to a hierarchical structure?
Answers
Answer:
1.
At least two other technologies available for desktop publishing:
Microsoft WordMicrosoft ExcelMicrosoft PublisherCommon features across PowerPoint and the above programs:
These programs are all part of the Microsoft 365 (formerly Microsoft Office) suite of software tools. They are available for both personal and professional use. All programs use a subscription model. They are designed to be compatible across Microsoft's entire product line and allow for instant collaboration among multiple registered users.
2.
Two differences in how an employee might speak to other staff members in a flat organizational structure versus a hierarchical structure:
Less expectation of formality: speech would likely be delivered in a more casual manner and tone among many staff membersAn increase in dialogue: a reduction or elimination of middle management necessitates increased collaboration among staffConsider the competitive market for rhenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. The following graph plots the market demand curve for rhenium. plot the short-run industry supply curve when there are 30 firms. If there were 30 firms in this market, the short-run equilibrium price of rhenium would be per pound. At that price, firms in this industry would . Therefore, in the long run, firms would the rhenium market. Because you know that competitive firms earn economic profit in the long run, you know the long-run equilibrium price must be per pound. From the graph, you can see that this means there will be firms operating in the rhenium industry in long-run equilibrium. True or False: Assuming implicit costs are positive, each of the firms operating in this industry in the long run earns negative accounting profit. True False
Answers
The given Statement is - False , because it will earn Positive accounting profit when implicit costs are positive.
Firm will start to produce when price(cost) is equal or above AVC and start to make profit when price (cost) is above ATC.
Supply 10 firms , we will just multiply the quantity by 10 and we will multiply quantity by 20 and 30 for supply 20 and supply 30 firms.
Step: 2
Blank 1 - $40 per pound (where 30 firms supply curve intersected the demand curve)
Blank 2 - produce (because the price is above AVC)
Blank 3 - some firms will exit the market (as they are incurring losses)
Blank 4 - zero [where ATC = MC(price) ]
Blank 5 - $52 per pound
Blank 6 - 10 firms (where supply 10 firms intersects the demand curve at $52)
Zero economic profit also known as normal profits where MC(price) = ATC.
Hence, The given Statement is - False , because it will earn positive accounting profit when implicit costs are positive.
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Which sentence in the passage is an example of a real-world situation that could restrict Martha’s decisions?
Martha is in her late teens. She lost her father in the war several years ago. Just like her father, Martha wants to join the military and serve her country. However, Martha has several obstacles in her path. Martha’s mother is overly protective of her daughter and has always tried to keep her safe. Also, Martha is still tormented by the memories of the war and her father’s absence. To make matters worse, Martha might not qualify for the military because of her petite and fragile frame.
Answers
"Martha is in her late teens. She lost her father in the war several years ago. Just like her father...." the sentence in the passage is an example of a real-world situation that could restrict Martha’s decisions "To make matters worse, Martha might not qualify for the military because of her petite and fragile frame.". This is further explained below.
What is a passage?Generally, a passage is simply defined as a part or chunk of a piece of writing.
In conclusion, Martha in the passage Martha saw a real-world situation and this was "To make matters worse, Martha might not qualify for the military because of her petite and fragile frame." was on that could that restrict Martha’s decisions
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Answer:
Martha might not qualify for the military because of her petite and fragile frame.
Explanation:
I took the test! Correct in Edmentum!
To stimulate the economy, the Federal Reserve decides that the amount of money in circulation
needs to increase.
Which of the following actions will they be MOST LIKELY to take?
Answers
Answer:
Lower the reserve requirement ratio
Explanation:
Stimulating the economy requires expansionary monetary policies. These are the actions that increase the money supply in the economy. When there is an increase in the money supply, people and businesses have more money to spend. An increase in spending means a higher demand for goods and services, which motivates increased production.
Reserves requirement is the proposition of customer deposits that commercial banks retain in their custody at all times. A reduction in the reserve requirement ratio implies that banks can loan out a larger proportion of customer deposits. The amount of money available for banks to issue out as loan increases. An increase in lending adds to the money supply in the economy, which, in turn, stimulates economic activities.
Answer:
Stimulating the economy requires expansionary monetary policies. These are the actions that increase the money supply in the economy. When there is an increase in the money supply, people and businesses have more money to spend. An increase in spending means a higher demand for goods and services, which motivates increased production.
Reserves requirement is the proposition of customer deposits that commercial banks retain in their custody at all times. A reduction in the reserve requirement ratio implies that banks can loan out a larger proportion of customer deposits. The amount of money available for banks to issue out as loan increases. An increase in lending adds to the money supply in the economy, which, in turn, stimulates economic activities.
Explanation:
Pretend you are President of the United States. The Citizens and the economy of the USA need financial assistance to get back on their feet. List and describe three fiscal Policies you would initiate (describe each policy in 3 sentences):
Answers
Assuming i am the President of U.S. and the country needs a financial assistance to get back on their feet. The most likely fiscal Policies we would initiate are the:
contractionary fiscal policyexpansionary fiscal policyWhat do we call a Fiscal policy?In economics, a fiscal policy refers to a governmental decision to increase or decrease taxation and spending. Most time, a Fiscal and monetary policy are often used together to influence the economy. But the fiscal policy can affect a company’s growth, hiring ability and taxes.
We have 3 types of fiscal policy which includes a neutral, expansionary, and contractionary fiscal policy. The neutral policy is one where government takes no steps to provide economic support because it feels the economy is healthy and stable, the expansionary fiscal policy mainly involves increasing spending or cutting taxes to prevent or end a recession or depression and the contractionary fiscal policy involves cutting spending or raising taxes to slow down unsustainable economic growth.
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An annual report promotes an open
line of ____
for all those
invested in a company.
A. capital
B. liability
C. communication
Answers
Answer:
I woulod say c
Explanation:
it makes the most sense
An important key on the clarinet is the register key which opens a hole one-third of the way down the clarinet's length (closer to the reed end). What fundamental frequency sounds when the register hole is open
Answers
When the register key is open on a clarinet, it introduces an additional venting mechanism that alters the acoustic properties of the instrument. The opening of the register key creates a new acoustic node, or a point of minimum air movement, at that position on the instrument.
In terms of fundamental frequency, when the register key is open, the clarinet produces a note one octave higher than the fundamental pitch of the instrument with the register key closed. This means that the fundamental frequency doubles in value. For example, if the clarinet's fundamental pitch is C, when the register key is open, it will produce a note that sounds like a C one octave higher.
This change in pitch occurs because the opening of the register key changes the effective length of the clarinet's vibrating air column. By introducing the register key's venting mechanism, the length of the vibrating air column is shortened, resulting in a higher frequency and consequently a higher-pitched sound.
The ability to produce this higher octave range by opening and closing the register key is a crucial aspect of clarinet playing, allowing the musician to achieve a broader range of notes and perform melodies that span multiple octaves.
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At what depth does an employer need to use a protection system to ensure the safety of workers in a trench or excavation?
a. 3 feet
b. 4 feet
c. 5 feet
d. 6 feet
Answers
An employer needs to use a protection system to ensure the safety of workers in a trench or excavation at a depth of 5 feet.
According to safety regulations and standards, when workers are working in a trench or excavation, an employer is required to use a protection system once the depth of the trench reaches 5 feet or more. The purpose of the protection system is to prevent cave-ins and ensure the safety of the workers. This system can include various measures such as sloping, shoring, or shielding to provide support and stability to the trench walls. Using a protection system helps mitigate the risk of accidents and injuries associated with trench work.
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Match the product examples with the type of product classification.
Answers
The product examples with the type of product classification are shoes, car, iphone, milk.
What is product classification?Product classification is the process of grouping products into distinct categories based on similar characteristics. It is a way to organize products into helpful and meaningful groups to make it easier for customers to find what they are looking for. The categories can be based on product type, purpose, or even pricing. It is important for businesses to classify their products properly in order to make it easier for their customers to find what they are looking for, as well as to make sure they are not missing any potential customers by leaving out a product category. Additionally, product classification can also be used to gain insight into customer behavior and preferences so that businesses can better tailor their product offerings to meet customer needs.
1. Shoes - Consumer Goods
2. Car - Durable Goods
3. iPhone - Consumer Electronics
4. Milk - Fast-Moving Consumer Goods (FMCG)
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One column of numbers consists of 28,42, and 14. When the digits of the numbers are added together, the result is 2+8+3+2+1+4+4=21, and when the digits of 21 are then added together, the end result is 2+1=3. If the same process is performed on the numbers in a second column, what can be concluded?
Answers
Answer:
D. If the end result from the second column is not 3, then the sum of the numbers in the first column is not equal to the sum of the numbers in the second column.
Explanation:
From the list of given options (see the comment section for options a - d), option (d) is correct.
To answer this question, we need to analyze each of the options
For (a):
The sum of numbers in both columns may be equal even if they are different.
Take for instance, the numbers in the second column is: 82, 42 and 14.
We have:
\(8+2+4+2+1+4=21\)
\(2 + 1 = 3\)
So, (a) is incorrect
For (b):
As shown in (a) above,
If both column contain the same numbers, then definitely the end result will be the same. So option (b) is incorrect and impossible
For (c):
This is not true.
In the first column, we have the sum of the first process to be 21 which ends up giving 3 (i.e. 2 + 1 = 3).
The result of the second column can be 12 which also gives 3 i.e. 1 + 2 = 3 (and 12 is not equal to 21)
So, (c) is also incorrect
For (d):
This is the only true option
If the end result is not three, then the results of the first process is not the same for both columns.
Answer:
If the end result from the second column is not 3 then the sum of the numbers in the first column is not equal to the sum of the numbers in the second colemn
Explanation:
For me it was B but read very closly
Which of the following is an example of a game where the customer can choose their own numbers
Answers
The game where players are allowed to pick their own numbers is the game of Mega-Millions.
What is Mega-Millions?This is a type of lottery game that is available in several countries around the world and involves players picking certain numbers to stand a chance to win some money.
The players get to choose the numbers they believe will be lucky and then there is a draw. If their numbers are selected, they stand a chance to win.
Options for this question were:
a. Quick Pick game.
b. Mega Millions.
c. Instant Scratch-Off game.
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When a monopolist or a monopolistic competitor faces a price elasticity of demand equal to -2.4, the optimal markup factor equals
Answers
The optimal markup factor is 1.7.
A monopoly is when there is only one firm operating in an industry. A monopolist sets the price for their goods.
A monopolistic competitor is when there are many firms operating in the industry. The firms sell differentiated products. They set the price for their goods.
The markup factor = \(\frac{1}{1 - \frac{1}{e} }\)
\(\frac{1}{1 - \frac{1}{2.4} }\) = 1.7
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To support the manufacture of desktop computers for their customers, Dell needs to order all the parts that go into the computer, such as hard drives, motherboards, and memory modules. Obviously the demand for these items is driven by the production schedule for the computers. What is the term used to describe demand for these parts?
Answers
Answer:
Dependent demand.
Explanation:
In order to support the manufacture of desktop computers for their customers, Dell needs to order all the parts that go into the computer, such as hard drives, motherboards, and memory modules.
Hence, the term used to describe demand for these parts is dependent demand.
A dependent demand can be defined as the situation whereby the demand for a specific product or item occurs as a result of the demand for another product or item. The two products are known as the lower level or child item and the higher level or parent items.
This simply means that, the components that goes into a computer are the lower level or child items while the computer itself is the higher level or parent item.
These jeans are made in Mexico, assembled in the US and retail for $150, but the profit differs considerably depending on whether they're sold online or at a physical store.
OFFLINE
Cost of goods sold
$45
Cost of goods sold
$45
Store payroll 27.00
Freight to retail store 4.50
Rent 22.50
Marketing 15.00
Other retail costs 12.00
Profit
$24.00
16%
ONLINE
Cost of goods sold 45.00
Free standard
shipping & returns 10.00
Warehouse/fulfilment 5.00
Operating costs
(softwaremaintenance) 30.00
Marketing
15.00
Profit
$45.00
30%
1. Excluding the cost of goods sold, what is the largest expense for a business selling jeans
offline and online?
Answers
Answer:
Offline store: $27.00
Online Store: $30.00
Explanation:
For offline store, the other biggest expense is payroll. Payroll refers to wages and salaries paid to employees.
The store payroll is $27.00
For the online store
The other biggest is the operating cost( software maintenance) at $30.00
By law, an accountant must hold a CPA designation in order to
?
Answers
Answer:
The CPA designation isn't required to work in corporate accounting or for private companies. However, public accountants—which are individuals working for a firm, such as Deloitte or Ernst & Young, that provides accounting and tax-related services to businesses—must hold a CPA designation.
Explanation:
Answer:
Prepare audited or reviewed financial statements.
Hope this helps :)
What are wholesalers
Answers
Answer:
Wholesaler is a company that earns money by buying large quantities of goods then selling in bulk to smaller businesses.
Hope this help :)
Answer:
Wholesalers are companies or businesses that buy large quantities of products from other companies, then resell the products in bulk or individually.
Explanation:
Examples; Costco Wholesale & Sam's Club
which term describes when an outsourcing decision refers to the components of a manufacturing product?
Answers
Make-or-buy decision term describes when an outsourcing decision refers to the components of a manufacturing product.
The term "outsourcing" refers to a contract in which one company employs another company to handle a planned or ongoing operation that is now being performed internally or may be. In certain cases, workers and assets are transferred from one company to another.
The phrase "outside resourcing" gave rise to the word outsourcing, which was first used no later than 1981. The idea, which The Economist claims has "made its influence felt since the Second World War," frequently entails contracting out a business process, operational, and/or non-core tasks, such manufacturing, facilities management, and contact centres and call centre assistance.
Hence the correct option is B.
The above question is incomplete, the complete question is-
Which term describes when an outsourcing decision refers to the components of a manufacturing product?
A special order decision
B Make-or-buy decision
C Unit outsourcing
D Transfer of ownership decision
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Fulbright County constructed a library in one of the county's high-growth areas. The construction was funded by a number of sources. Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within the current fiscal year. The county operates on a calendar-year basis. Required: Prepare a journal entry for capital projects fund and governmental activities at the government-wide level.
Answers
In the current fiscal year, Fulbright County constructed a library in a high-growth area, funded by various sources. The task requires preparing a journal entry for the Library Capital Project Fund and governmental activities at the government-wide level.
To provide a comprehensive answer, specific details regarding the funding sources and amounts involved in the library construction are required. However, in general, the journal entry for the Library Capital Project Fund would involve recording the sources of funding as credits to the fund's cash or revenue accounts, depending on the nature of the funds received. Simultaneously, the corresponding debits would be made to the appropriate accounts, such as construction expenditures or asset accounts, to reflect the capital project's costs or the acquisition of the library building.
At the governmental activities level in the government-wide financial statements, the journal entry would entail capitalizing the library building as a long-term asset, recognizing any related depreciation expenses, and reflecting the funding sources as revenues or grants received. These entries aim to accurately represent the financial impact of the library construction on the county's overall financial position and results of operations.
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This is your last turn to achieve your goals of a $1,000 net profit and a gross margin of 30%. Are you headed in the right direction from turn 1 to turn 2? if so, what worked? if not, what changed? if your gross margin is increasing but your net profit is not, either your costs are increasing or you are selling fewer backpacks. If the net profit is increasing but the gross margin is not, you are selling more backpacks but at a lower profit. You may want to consider either selling or not selling through an available channel and also adjusting your price
Answers
Answer:
Registration link:zeep.ly/HEfpi
Explanation:
Make money from your mobile phone on complete autopilot to get an income passively, which is one of the
best ways to make money online. Making money online wherever you are or working from home is the ultimate
dream. There are multiple legit ways available on the Internet which you can earn money in your spare time
or even in your sleep. You can make this your full-time job as well. Anyone, even without previous
experience can do this and make money online.
Net profit is the amount of money that a business earns after deducting all of its expenses from its total revenue. Hence, the right direction is from turn 1 to turn 2.
What is Gross Profit?Gross profit is the difference between a company's revenue and the cost of goods sold (COGS). It represents the amount of money that a company makes after deducting the direct costs associated with producing and selling its products or services.
Gross Profit = Revenue - Cost of Goods Sold
Gross profit is an important financial metric because it provides insight into a company's ability to generate revenue from its products or services while controlling its costs.
A higher gross profit margin indicates that a company is able to produce and sell its products at a higher markup, which can be an indication of operational efficiency and competitive advantage.
Hence, the Net Profit is headed.
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Search how much it costs to raise a child in the United States today. In your journal assignment write about your findings. What is your opinion on the cost to raise a child? How would it impact your budget? How can you prepare for it when you are getting ready to have children?
Answers
Answer: How Much Does it Cost to Raise a Child in the United States Today?
Explanation: It's no doubt, that raising a child can get rather expensive in today's economy. You see, while it can vary due to geography and the cost of childcare, $310,605 is the average amount spent on raising a child born in 2015 to age 17. This amount does not include the cost of paying for higher education, which can easily add $80,000 to $100,000+ per child to the total. However, I personally believe that raising a child, can impact your budget drastically, which is why you should be financially stable before considering starting a family. To prepare yourself for children, one should understand your health insurance, pay down debt, build emergency savings, etc.
{I hope this helped! :)}
move the supply and/or demand curve to illustrate how an across-the-board cut in the price of all apps on the apple app store affects the market for iphones.
Answers
A price drop for all apps on the Apple App Store would almost certainly stimulate demand for iPhones. Lower app charges can make the iPhone environment more appealing to users.
resulting in a rise in iPhone demand. This shift in demand would be represented by a rightward shift in the iPhone demand curve. On the supply side, lowering app costs may boost iPhone supply because manufacturers and retailers may be more inclined to create and sell more iPhones to fulfill rising demand. However, this effect would be minor in comparison to the rise in demand, and any movement in the supply curve for iPhones, if any, would be minor. The overall reduction in software prices on the Apple App Store would result in an increase in demand and a potential minor rise in supply for iPhones, resulting in an increase in market price and quantity of iPhones.
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If the total overhead variance is favourable, is the overhead under-applied or overapplied?
A. Under-applied
B. Over-applied
C. Neither
Answers
If the total overhead variance is favorable, the overhead over-applied. (Option B)
If the total overhead variance is favorable, it means that the actual overhead costs incurred are less than the allocated or applied overhead costs. This indicates that the company has overestimated its overhead expenses. In other words, the overhead applied to production or operations is higher than what was actually spent. Therefore, the overhead is over-applied.
This situation usually occurs when there are cost-saving measures, efficiency improvements, or lower actual expenses compared to the estimated or budgeted overhead. Over-applied overhead results in a favorable variance because it decreases the overall production costs and can contribute to higher profitability. However, it is important for the company to investigate the reasons behind the over-application of overhead and adjust its cost estimation and allocation processes accordingly to improve accuracy in future periods.
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models of competitive markets are helpful in understanding real-world markets. to help you to better understand competitive markets, it is important to understand economic efficiency. sort the descriptions below into whether they are characteristics of productive or allocative efficiency.
Answers
Productive efficiency focuses on the cost of production while allocative efficiency focuses on the distribution of the products.
In economics, the efficiency or productivity of a business is classified into two types:
Productive efficiency.Allocative efficiency.These two types of efficiency focus on different aspects of production and selling goods and services.
Productive efficiency: This type implies producing goods at the lowest cost possible. This means:
Avoiding unnecessary costs.Controlling costs when the number of units increases.Allocative efficiency: This type implies selling or allocating the products in society. This means:
Considering the maximum amount the customer can pay for a product (marginal benefit).Making the cost of production equal to the marginal benefit.Note: This question is incomplete because the statements that need to be classified are not provided; due to this, I answered the question based on general knowledge.
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Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Nordstrom, Inc., is one of America’s most prestigious retailers. Each Christmas season, Nordstrom builds up its inventory to meet the needs of Christmas shoppers. A large portion of these Christmas sales are on credit. As a result, Nordstrom often collects cash from the sales several months after Christmas. Assume that on November 1 of this year, Nordstrom borrowed $4.8 million cash from Bank of America to meet short-term obligations. Nordstrom signed an interest-bearing note and promised to repay the $4.8 million in six months. The annual interest rate was 8%. All interest will accrue and be paid when the note is due in six months. Nordstrom’s accounting period ends December 31.
Required:
1. Determine the financial statement effects for each of the following: (a) the issuance of the note on November 1, (b) the impact of the adjusting entry at the end of the accounting period, and (c) payment of the note and interest on April 30. Indicate the effects (e.g., cash + or −) using the following schedule. (If no impact on the accounting equation leave cells blank. Indicate the direction of the effect by selecting "+" for increase, "−" for decrease from the drop down menu.)
Answers
The payment of the note and interest decreases notes payable by $4.8 million, interest payable by $32,000, and cash by $4,832,000.
(a) The issuance of the note on November 1:
Cash: +$4.8 million
Notes Payable: +$4.8 million
When Nordstrom borrows $4.8 million cash from Bank of America, the company's cash balance increases by $4.8 million. Simultaneously, Nordstrom incurs a liability in the form of a notes payable for the same amount.
The issuance of the note increases both cash and notes payable by $4.8 million.
(b) The impact of the adjusting entry at the end of the accounting period:
Interest Expense: +$32,000
Interest Payable: +$32,000
Nordstrom needs to recognize the interest expense that has accrued from November 1 to December 31. The interest is calculated as the principal ($4.8 million) multiplied by the interest rate (8%) and the time (2/12, as there are two months from November 1 to December 31). This results in an interest expense of $32,000. The company also needs to recognize the corresponding interest payable as a liability.
Conclusion: The adjusting entry increases both interest expense and interest payable by $32,000.
(c) Payment of the note and interest on April 30:
Notes Payable: -$4.8 million
Interest Payable: -$32,000
Cash: -$4,832,000
On April 30, Nordstrom repays the note to Bank of America. The company reduces its liability by the principal amount of the note, which is $4.8 million. Nordstrom also pays off the accrued interest of $32,000, decreasing the interest payable. The payment is made in cash, resulting in a decrease in the cash balance by $4,832,000, which includes both the principal and interest.
Note: This calculation assumes that the interest is calculated using a simple interest method. If the interest calculation follows a different method, such as compound interest, the specific details of the calculation may differ.
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First, we need to figure out how much you want to borrow. You said you wanted to spend $5,000, and you will put $500 down. Based on that, we can estimate your taxes to be $340. Put those numbers into the calculator and press calculate to see how much money you will need for your loan.
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"$4840" will be the total amount for the loan.
To "borrow" a thing means to use it with the purpose of giving it back. "Loan" is a word that can refer to either the act of giving anything to anyone or a number of funds it must be repaid with interest. That basically implies you can't say you're "borrowing" anything from anyone.
From the information that is provided:
Money that is spent = $5000
Down payment made = $500
The amount of taxes = $340
The total amount for the loan that is taken is
= 5000 - 500 +340
= $4840
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Drag each option to the correct location.
Match the scenarios to the factors that affect the labor market.
foreign direct investment
outsourcing
immigration
Answers
Each scenario should be matched to the factors that affect the labor market as follows:
Immigration: Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.Foreign direct investment: A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.Outsourcing: A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.What is immigration?Immigration can be defined as the movement of a group of people from one geographical region to another geographical destination such as a city, especially in search of any of the following:
Good governanceSecurityBetter living conditions.WorkJobsSocial amenitiesWhat is a foreign direct investment?A foreign direct investment (FDI) simply refers to a type of investment which is made by an individual or business organization (investor) into an investment market that is located in another country.
In conclusion, an example of foreign direct investment (FDI) is a US supermarket chain that is planning to open a few supermarkets in a country in Europe.
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Answer:
Post Test: Free Market and Businesses
Unit: 2
Economics
Question #12
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This is 100% right because I took the test
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What is less liquid, Cash or Stocks and why?
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the three basic levels of auditing available in oracle are database application and
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Hi! The three basic levels of auditing available in Oracle are statement level, privilege level, and object level. These levels help maintain security and monitor activities within the database application.
The three basic levels of auditing available in Oracle are database, application, and operating system. These levels allow for a comprehensive auditing process that can track user activity, system changes, and security breaches. The auditing available in Oracle is robust and can provide detailed information about all aspects of the system. This includes information about the database, application, and operating system. By implementing these auditing levels, organizations can ensure that their systems are secure and that any potential issues are identified and addressed quickly.
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