Accounts receivable in an existing business:A) are rarely worth their face value.

B) unlike inventory, are often worth their face value.

C) appreciate over time due to interest and penalties.

D) are not a significant consideration when buying anexisting business

Answers

Answer 1
Answer:

Answer:

The correct answer is letter "A": are rarely worth their face value.

Explanation:

Accounts receivables are notes issued to customers after selling them a product or rendering services on credit. The repayment term may vary from 30, 60 or 90 days. If an account receivable is not paid after that period it could be considered as an uncollectible account which implies the company will incur losses.

Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.


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Suppose that your state raises its sales tax from 5 percent to 6 percent. The state revenue commissioner forecasts a 20 percent increase in sales tax revenue. Which of the following are plausible as a result of this increase in the sales tax. Is this plausible? Explain.
Aspin Corporation’s charter authorizes issuance of 2,100,000 shares of common stock. Currently, 1,400,000 shares are outstanding, and 300,000 shares are being held as treasury stock. The firm wishes to raise $44,000,000 for plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $55 per share.a.  What is the maximum number of new shares of common stock that the firm can sell without receiving further​authorization?b.  Judging on the basis of the data given and your finding in part a in part a, will the firm be able to raise the needed funds without receiving further​ authorization?c.  What must the firm do to obtain authorization to issue more than the number of shares found in part a?
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Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?

Answers

Answer:

$2,252,000

Explanation:

Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement

Using this formula

2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)

Let Plug in the formula

2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)

2021 income statement Cost of Goods Sold =$2110000+$142,000

2021 income statement Cost of Goods Sold =$2,252,000

Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000

How could job characteristics theory guide Andrea as she considers ways of combining areas for the staffers? Is there a way to give the new versions of their jobs a higher satisfaction potential than the pre-downsizing versions?

Answers

Answer:

Job characteristics theory could guide Andrea as she considers ways of combining areas for the staffers by developing a more challenging versatile job functions that will stimulate performance.

Explanation:

The Job Characteristics Model is a theory that is based on the idea that a task in itself is the key to the employee's motivation. In short, a boring and monotonous job is disastrous to an employee's motivation whereas a challenging, versatile job has a positive effect on motivation.

According to the tenets of job characteristics model, a more challenging and versatile job will give higher satisfaction potential than the pre-downsizing versions which could be counter productive and depressing.

High costs are associated with highunemployment. What economic
phenomena is associated with high
unemployment?
A. Economic Growth
B. Economic Stability
C. Economic Depression

Answers

Answer:

C. Economic Depression

Explanation:

Economic Depression is when an economy goes into financial turmoil/ struggles.

why it is important to business administration student to study and know the basic principles of income taxation? ​

Answers

Although the benefit principle of taxes is founded on two notions, it is critical for business administration students to learn and understand the fundamental principles of income taxation. The first and most important point is that people who gain from services should pay for them. Second, taxation should be proportional to the amount of benefits or services received.

An income tax is generally a tax levied on persons or corporations (taxpayers) based on their earnings or profits (often referred to as taxable income). In most cases, income tax is calculated as the result of a tax rate multiplied by the taxable income.

Taxation rates may differ depending on the taxpayer's attributes and the source of income.

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PRINCIPAL OF INCOME TAXATION

The benefit principle of taxation is based on two ideas. The first and foremost is that those who benefit from services should be the ones who pay for them. Secondly, people should pay taxes in proportion to the amount of services or benefits they receive.

Explanation:

HOPE IT HELP U MAKE

Rossdale Co. stock currently sells for $68.91 per share and has a beta of .88. The market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. The company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. What is your best estimate of the company's cost of equity?

Answers

Answer:

Cost of Equity 8.794%

Explanation:

We can solve for the cost of equity using the CAPM

Ke= r_f + \beta (r_m-r_f)  

risk free 0.0291

premium market = market rate - risk free 0.071

beta(non diversifiable risk) 0.88

 

Ke= 0.0291 + 0.88 (0.071)  

Ke 0.09158 = 9.158%

Or using the gordon dividend grow model

(divends_1)/(return-growth) = Intrinsic \: Value

D= 3.57

return = ?

growth 0.0325

stock = 68.91

(3.57)/(return-0.0325) = 68.91

we solve for return:

(3.57)/(68.91) + 0.0325 = return

return = 0,08430670 = 8.43%

Now we have two diferent rates, so we can do an average to get the best estimate cost of equity

(9.158 + 8.43)/2 = 8.794%

Final answer:

The company's cost of equity, based on provided data points and the Capital Asset Pricing Model (CAPM), is calculated to be 9.14% annually.

Explanation:

Cost of equity is typically estimated using the Capital Asset Pricing Model (CAPM). Under the CAPM, the cost of equity is a function of the risk-free interest rate, the equity's beta, and the expected market risk premium. In this case, we can substitue the given values into the CAPM equation, which is: Cost of Equity = Risk-free rate + Beta * Market Risk Premium. Therefore, the company's cost of equity can be calculated as: Cost of Equity = 2.91% + 0.88 * 7.10% = 9.14%. As for the dividends, they are growing at a rate of 3.25% annually, but they are not directly contributing to the company's cost of equity.

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If the unemployment rate falls below its long-run level, which policies would be appropriate to stabilize output? a. increase the money supply, increase taxes b. increase the money supply, cut taxes c. decrease the money supply, increase taxes d. decrease the money supply, cut taxes

Answers

Answer:

c. decrease the money supply, increase taxes

Explanation:

Unemployment rate lower than the natural rate of unemployment (long run unemployment), creates inflationary gap in the economy. It requires policies to be contractionary in nature. Hence, money supply should decrease and tax should increase to correct the economy.

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