Under the percentage of completion method, if the actual costs are ____ the estimated costs, the taxpayer must pay interest on the underpayment of prior years’ taxes.

Answers

Answer 1

Answer:

Answer:

The correct answer is Less than the estimated costs.

Explanation:

The percentage method completed is an accounting practice used to recognize income in long-term contracts.

When long-term projects (greater than one year) are undertaken, the costs and revenues associated with it are incurred throughout its life.

This accounting method, as its name suggests, allows the company to account for part of the associated income and expenses incurred as the project phases are completed. Thus, the percentage complete method is understood as a method of recognition of recognition of income and expenses that is applied continuously without having to defer income and expenses at the end of the project.

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Jamal is part of a management group that is examining whether his company, State Engineering, should offer some important new services that would broaden its business by appealing to a different group of potential clients. Jamal's group is involved with:

According to the text, firms encounter rising costs when they attempt to produce more in the same time period. As a consequence, they must be offered a higher price to be willing to incur these higher costs. The resulting relationship between price and quantity supplied isA. direct (or positive) and is called the law of demand.
B. inverse (or negative) and is called the law of supply.
C. direct (or positive) and is called the law of human nature.
D. direct (or positive) and is called the law of supply.

Answers

Answer:

D. direct (or positive) and is called the law of supply.

Explanation:

According to the law of supply, when the price of product is increases, then the quantity supplied of that product would also increases and if the price of product is decreases, then the quantity supplied of that product would also decreases. That means it shows a direct or positive relationship between the price and the quantity supplied keeping other factor constant i.e they do not changed.

charcoal grills, accessories, and installation services for custom patio grilling stations. The State of Kentucky is planning major renovations in its parks during 2017 and enters into a contract with BBQ to purchase 400 durable, easy maintenance, standard charcoal grills during 2017. The grills are priced at $200 each (with a cost of $160 each), and BBQ provides a 6% volume discount if Kentucky purchases at least 300 grills during 2017. On April 17, 2017, BBQ Company delivered and received payment for 280 grills. Based on prior experience with the State of Kentucky renovation projects, the delivery of this many grills makes it certain that Kentucky will meet the discount threshold later that same year. What amount of revenue should BBQ report for these units sold on April 17th?

Answers

Answer:

The answer is: BBQ should report a revenue of $52,640

Explanation:

If BBQ is sure that the State of Kentucky is going to meet the discount threshold, then they should consider the discount when recording their revenue.

revenue = $200 (regular price) x 280 units x 94% (net price after discount)

revenue = $52,640

A lease option is a clause that grants an option holder the right, but not the obligation, to renew the lease, cancel the agreement, relocate within a property, or even expand to adjacent space. The existence of these options in a leasing agreement:A. Reduces the expected present value of lease cash flows to the owner
B. Increases the expected present value of lease cash flows to the owner
C. Does not impact the expected present value of lease cash flows to the owner
D. Causes the expected present value of lease cash flows to equal zero

Answers

Answer:

B. Increases the expected present value of lease cash flows to the owner

Explanation:

A lease option gives a right but not the obligation to the renter of the property to buy the said property at today's current market price upon the expiry of lease term.

Lease option is similar to an option contract, the difference being, here instead of securities, leased property serves as the underlying asset and instead of option premium, the renter pays a premium each year in addition to the rental charges.

Lease cash flows refer to the present value of future cash flows which the lessor/owner receives in the form of lease rentals plus the added premium each year.

The more the benefits under lease option clause, the higher the premium charged and thus, more would be the future receipts of owner which would increase the expected present value of lease cash flows to the owner.

"How does filing bankruptcy limit your quality of life?

Answers

Here are some reasons why filing bankruptcy will limit your quality of your lives :

- Bankruptcy will ruin your credit score
- I will potentially make you loss your property
- It will make it nearly impossible for you to get a mortgage

Suppose Maria prefers to buy a bond with a 7% expected return and 2% standard deviation of its expected return, while Jennifer prefers to buy a bond with a 4% expected return and 1% standard deviation of its expected return.Can you tell if Maria is more or less risk-averse than Jennifer?A.Maria is less risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.
B.Maria is more risk-averse than Jennifer because Maria is choosing a bond with lower volatility of its expected return.
C.There is not enough information to tell. In order to decide whether Maria or Jennifer is more risk averse, one will need to compare two bonds with the same expected return and different standard deviations of their expected returns.

Answers

Answer: The correct answer is "A.Maria is less risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.".

Explanation: We can measure the risk according to the standard deviation of its expected return, therefore: Maria is less risk averse because she is willing to take more risk in order to obtain a higher return and Jennifer instead prefers to sacrifice performance in order to be less exposed to risk.

Final answer:

Maria is less risk-averse than Jennifer because she chooses a bond with a higher expected return and a higher standard deviation, indicating a willingness to accept more risk.

Explanation:

This question involves the concepts of expected return and risk associated with investments, particularly bonds. Risk-aversion is the degree to which an investor prefers lower risk when investing. Maria, who prefers a bond with a 7% expected return and a 2% standard deviation, is displaying characteristics of being less risk-averse than Jennifer, who prefers a bond with a 4% expected return and a 1% standard deviation. This is because a higher standard deviation indicates a higher degree of risk, which Maria is willing to accept for the potential of a higher return.

Therefore, the correct answer is A. Maria is less risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.

Learn more about Risk-Aversion here:

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A person starts her own business after quitting a job in which she made $75,000 a year. Expenses include $100,000 for wages and salaries, $15,000 for utilities, $150,000 for materials and supplies, and $5000 for gasoline. She uses her own car in her work, for which she paid $16,000 two years earlier. She could rent the car for $5,000 a year. Explicit costs area. $195,000
b. $275,000
c. $270,000
d. $286,000

Answers

Explicit costs are business expenses that are easily identifiable and can be accounted for.

1) Wages and salaries = 100,000
2) Utilities expenses = 15,000
3) Materials and Supplies = 150,000
4) Gasoline expense = 5,000

100,000 + 15,000 + 150,000 + 5,000 = 270,000 answer is C.

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