A firm may raise additional equity to support it growth after initial public offering through which of the market

An explanation for 1st: To calculate the price of the bond, we need to use the present value of the interest and principal payments discounted at the market rate of 12%. Using the PV of $1 table, we can calculate the present value factors for the interest and principal payments. Multiplying these factors by the corresponding cash flows and summing them up gives us the price of the bonds, which is $1,130,863.

An explanation for 2nd: To calculate the price of the bond, we need to use the present value of the interest and principal payments discounted at the market rate of 16%, which is the semiannual equivalent of the annual rate of 14%. Using the PV of $1 table, we can calculate the present value factors for the interest and principal payments. Multiplying these factors by the corresponding cash flows and summing them up gives us the price of the bonds, which is $816,059.

An explanation for 3rd: To calculate the price of the bond, we need to use the present value of the interest and principal payments discounted at the market rate of 14%, which is the semiannual equivalent of the annual rate of 16%. Using the PV of $1 table, we can calculate the present value factors for the interest and principal payments. Multiplying these factors with the corresponding cash flows and summing them up gives us the price of the bonds, which is $1,120,893.

An explanation for 4th: To calculate the price of the bond, we need to use the present value of the interest and principal payments discounted at the market rate of 16%, which is the semiannual equivalent of the annual rate of 14%. Using the PV of $1 table, we can calculate the present value factors for the interest and principal payments. Multiplying these factors by the corresponding cash flows and summing them up gives us the price of the bonds, which is $685,601.

An explanation for 5th: When the stated rate is equal to the market rate, the price of the bond is equal to its face value, which is $1,000,000 in this case. The present value factors for the interest and principal payments are both equal to 1, so we don't need to use the PV tables to calculate the price of the bonds.

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Complete Question:

Complete the following to calculate the price of a $1.5 million bond issue under each of the following independent assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.Enter your answers in whole dollars.):

1. Maturity 15 years, interest paid annually, stated rate 10%, market rate 12%

Table values are based on:

n= i= Cash Flow Amount Present Value

Interest Principal Price of bonds

2. Maturity 6 years, interest paid semiannually, stated rate 14%, market rate 16%

Table values are based on:

n= i= Cash Flow Amount Present Value

Interest Principal Price of Bonds

3. Maturity 5 years, interest paid semiannually, stated rate 16%, market rate 14%

Table values are based on:

n= i= Cash Flow Amount Present Value

Interest Principal Price of bonds

4. Maturity 20 years, interest paid semiannually, stated rate 14%, market rate 16%

Table values are based on:

n= i= Cash Flow Amount Present Value

Interest Principal Price of Bonds

5. Maturity 20 years, interest paid semiannually, stated rate 14%, market rate 14%

Table values are based on:

n= i= Cash Flow Amount Present Value

Interest Principal Price of bonds

One way to identify alternative uses of resources is to conduct a cost-benefit analysis. Another objective way to determine resource allocations is to consider two viewpoints: private and social.

Resource allocation is a term used to describe the process of deciding how to distribute resources among competing uses. The process of resource allocation is important in economic evaluations because it can help identify the opportunity cost of selecting one option over another. When making decisions about resource allocations, it is important to consider the costs and benefits of each option.

One way to identify alternative uses of resources is to conduct a cost-benefit analysis. This involves weighing the costs of a particular action against the benefits it is expected to generate. By comparing the costs and benefits of different options, it is possible to determine which option is the most cost-effective.

In addition to cost-benefit analysis, another objective way to determine resource allocations is to consider two viewpoints: private and social. Private viewpoints consider the individual costs and benefits of an action, while social viewpoints consider the costs and benefits to society as a whole.

Economic evaluations are a useful tool for comparing different courses of action. By linking the inputs and outputs of alternative options, it is possible to provide a comparative analysis of each option. This can help decision-makers identify the most efficient and effective use of resources.

In conclusion, resource allocation is a critical process in economic evaluations. By identifying alternative uses of resources and considering the opportunity cost of each option, decision-makers can determine the most efficient and effective way to allocate resources. By using objective criteria to determine resource allocations, it is possible to make informed decisions that benefit both individuals and society as a whole.

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An advertiser who seeks high reception and voluntary audience exposure for his advertisements should choose television as his advertising medium.

Television is an ideal medium for reaching a large audience and has a significant impact on viewers. When it comes to advertising, television advertising is an excellent medium for brand recognition and promotion.In advertising, the advertiser can choose between several mediums to promote their goods or services. A medium is a form of communication that an advertiser can use to deliver his advertising message to a large audience. Advertisers can use mediums such as print media (newspapers, magazines, and brochures), broadcast media (radio and television), and online media (social media, websites, and email) to promote their products or services.

Each medium has its advantages and disadvantages, and the advertiser must choose the best medium for their advertisement based on their objectives.Television is a powerful medium for advertisers due to its high reception and the ability to reach a vast and diverse audience. Television is a medium that allows advertisers to display their products or services in a manner that is difficult to duplicate in any other medium. In addition, television advertising is capable of generating a strong emotional response from viewers. This strong emotional response is essential in building a connection between the viewer and the advertised product or service.

An advertiser who wants high reception and voluntary audience exposure for his advertisements should choose television as his advertising medium. This is because television is a medium that has a large and diverse audience, and it has the potential to generate a strong emotional response from viewers. In addition, television advertising is an excellent medium for brand recognition and promotion.

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Product A's sales mix is 55%.The ratio of each product that a company sells in relation to overall sales is calculated using the sales mix. 

Because some items or services can be more valuable than others, the sales mix is important because it can affect a company's earnings. A software corporation might market three product lines, for instance. The sales director for the company may forecast that in the coming year, 50% of sales may originate from Product A, 30% from Product B, and 20% from Item C. The revenue mix ratio is now 50-30-20.

Sales mix = 9350/(9350+7650)

                = 0.55*100=55%

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Constitutions, legislation, rules, and court decisions serve as primary sources of law. The executive, legislative, and judicial departments of government all have the authority to enact laws.

An enforceable contract must contain the following five components: offer, acceptance, awareness, consideration, and capacity. The "why" of an agreement, or the contract terms, are stated in its offer, which specifies what each party agrees to do or refrain from doing as part of the agreement's requirements.

The purpose of employment laws is to shield employees from unfair business practices. Workers would be exposed to a variety of dangers in the absence of those statutes. The main employment regulations cover child labor, workers' compensation, minimum wage, workplace safety and health, and discrimination.

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The items that are included in the code of professional ethics of the American Institute of Certified Public Accountants (AICPA) are as follows:1. Independence: This principle states that accountants should maintain independence in their work and avoid any relationships that could compromise their professional judgment.2.

Integrity: This principle refers to the quality of being honest and having strong moral principles. Accountants are expected to adhere to high ethical standards in their work.3. Objectivity: This principle requires accountants to be impartial and unbiased in their work. They should avoid any conflicts of interest and refrain from engaging in any activities that could compromise their objectivity.4. Confidentiality: This principle states that accountants should maintain the confidentiality of client information. They should not disclose any confidential information without the client's consent, except in certain situations where disclosure is required by law.5. Professional Competence: This principle requires accountants to maintain a high level of professional competence in their work. They should continue to develop their knowledge and skills to provide high-quality services to their clients.6. Professional Behavior: This principle requires accountants to act in a manner that reflects positively on the profession. They should avoid any behavior that could damage the reputation of the profession.The AICPA Code of Professional Conduct provides guidance and rules to help accountants navigate ethical issues in their work. By following these principles and rules, accountants can maintain their integrity, independence, and objectivity, and provide high-quality services to their clients.

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complements, with a cross price elasticity of -0.5. so the correct choice is C.

The cross elasticity of demand, a concept in economics, measures how responsively consumers buy more of one commodity when the price of another one rises.This statistic, which is also known as cross-price elasticity of demand, is determined by dividing the percentage change in the quantity demanded of one commodity by the percentage change in its price.

Cross Elasticity of Demand Formula

E = percentage of change in quantity of x/ percentage of change in the quantitiy of y

E = -10/20

E = -.5

The percentage change in the quantity demanded for one good has an impact on the percentage change in the price of another good, which is measured by the cross elasticity of demand.

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the actual question is :

Suppose that when the price of root beer rises 10%, the quantity of pizza demanded falls 5%. This would mean that pizza and root beer are

1) A) substitutes, with a cross price elasticity of -2.0.

B) complements, with a cross price elasticity of -2.0.

C) complements, with a cross price elasticity of -0.5.

D) substitutes, with a cross price elasticity of 0.5.

Qualified refers to highly cultivated customers who are likely to follow through on an intended purchase, buy the product repeatedly, and recommend it to others.

Customer cultivation is the process of engaging with customers at various stages of their relationship with your company to promote customer loyalty, retention, and brand advocacy. The goal of customer cultivation is to build long-term customer relationships by engaging with them beyond the initial sale.

Qualified customers are people who have expressed an interest in your product or service, have demonstrated a willingness to learn more about it, and have provided their contact information as a result. These are individuals who are most likely to follow through on an intended purchase, purchase the product repeatedly, and refer it to others.

Customer loyalty is the likelihood of a customer purchasing goods or services from the same brand again and again. It is the outcome of a positive customer experience, and it contributes significantly to the financial success of a business.

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The answer is b. Can train customers to buy only one products are on sale.

In the context of the various pricing strategies, this statement is true.

In conclusion, a noun is always used when the word "sale" is present. Always use sell when looking for a verb. Use the word sell to show any act or technique of selling, particularly one that involves persuasion and is denoted by a word like tough, hard, difficult, or easy.

Sale, which is used in the expressions for sale and on sale, refers to an exchange at a discounted price. When used as a verb, sell means to give something in exchange for money or to encourage or make someone to buy something.

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Note that at the average cost-minimizing level of output, the company is operating at a loss of approximately $9.26 million.

Average cost minimization is the process of finding the level of output that minimizes the average cost of production, which maximizes a firm's profits.

To determine the average cost-minimizing level of output, we need to find the quantity at which average cost (AC) is at its minimum. This occurs when marginal cost (MC) equals average cost (AC). So we set MC = AC:

MC = AC

$800 + $0.008Q = TC/Q

$800 + $0.008Q = ($12,100,000 + $800Q + $0.004Q)/Q

$800Q + $0.008Q² = $12,100,000 + $800Q + $0.004Q

$0.008Q^2 = $12,100,000 + $0.196Q

$0.008Q^2 - $0.196Q - $12,100,000 = 0

Solving for Q using the quadratic formula, we get:

Q = (-(-0.196) ± √((-0.196)² - 4(0.008)(-12,100,000))) / (2(0.008))

Q ≈ 2,969

Therefore, the average cost-minimizing level of output is approximately 2,969 units.

To find MC at this level of output, we plug in Q = 2,969 into the MC equation:

MC = $800 + $0.008Q

MC = $800 + $0.008(2,969)

MC ≈ $824

To find AC at this level of output, we plug in Q = 2,969 into the TC and Q equations:

TC = $12,100,000 + $800Q + $0.004Q²

TC = $12,100,000 + $800(2,969) + $0.004(2,969)²

TC ≈ $14,502,096

AC = TC/Q

AC = $14,502,096/2,969

AC ≈ $4,885.44

To find P at this level of output, we plug in Q = 2,969 into the MR equation and set it equal to the price (P) that consumers are willing to pay:

MR = $1,800 - $0.012Q

MR = $1,800 - $0.012(2,969)

MR ≈ $1,764.52

P = MR

P ≈ $1,764.52

Finally, to find profit (π) at this level of output, we subtract total cost (TC) from total revenue (TR):

TR = P × Q

TR = $1,764.52 × 2,969

TR ≈ $5,239,895.88

π = TR - TC

π ≈ $5,239,895.88 - $14,502,096

π ≈ -$9,262,200.12

Therefore, at the average cost-minimizing level of output, the company is operating at a loss of approximately $9.26 million.



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Full Question:

Although part of your question is missing, you might be referring to this full question:


Average Cost Minimization. Giant Screen TV, Inc., is a San Diego-based importer anddistributor of 60-inch screen, high-resolution televisions for individual and commercial customers. Revenue and cost relations are as follows:

TR = $1,800Q - $0.006

MR = ∆TR/∆Q = $1,800 - $0.012Q

TC = $12,100,000 + $800Q + $0.004

MC = ∆TC/∆Q = $800 + $0.008Q

A. Calculate output (Q), marginal cost (MC), average cost (AC), price (P), and profit (π) atthe average cost-minimizing activity level.

costs are separated between variable and fixed expenses when using Activity-based Costing (ABC), whereas Job-Order Costing (JOC) separates costs between product and period.

ABC is a costing method that is used to identify and assign costs to activities or processes within a business, based on the resources consumed by each activity. It is used to assign the overhead costs incurred in running a business to the products or services that use those activities. The variable costs associated with the production of a product or service are easily identified and are directly related to the amount produced. Fixed costs, on the other hand, remain the same regardless of the amount of output.

JOC is a costing method that is used to determine the cost of manufacturing a product or providing a service by considering direct labor and material costs, along with any other costs associated with the specific job. The costs are allocated to the product based on the amount of labor or materials used to produce the product or service. JOC also separates costs between product and period costs, meaning that a portion of the costs are allocated directly to the product, and a portion of the costs are allocated to the entire period.

In conclusion, Activity-based Costing (ABC) and Job-Order Costing (JOC) are two methods of costing that can be used to allocate costs to a product or service. ABC separates costs between variable and fixed expenses, while JOC separates costs between product and period.

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Adjusting the cash balance to match the bank statement balance is the necessary step to reconcile the bank balance and cash account balance.

1) Compare the bank statement balance with the book balance

2) Document any reconciling items such as outstanding checks, deposits in transit, and bank fees

3) Adjust the cash balance to match the bank statement balance

4) Prepare a bank reconciliation statement that summarizes the reconciliation process

5) Retain a copy of the bank reconciliation statement.

The bank balance is the company's cash position in the company's bank accounts as reported according to the month-end bank statement. As debits and credits are processed through your bank account, these amounts are reflected in your bank account's cash balance. However, there are some scenarios where a company's book balance differs from its bank balance.  

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The gap between interest sensitive assets and interest sensitive liabilities is known as a bank's interest rate sensitivity gap. If the gap is negative, this indicates that the bank's interest-sensitive liabilities exceed its interest-sensitive assets. If the interest rate falls by 1% point, the bank's profit will decline.

When the interest rates fall, the cost of funds on the bank's interest-sensitive liabilities is lowered, allowing the bank to pay less in interest to its depositors. However, the interest earned on interest-sensitive assets falls more than the interest rate on liabilities, resulting in a decrease in net interest income and, therefore, lower profits.

The bank's assets would decline in value by $10 for each $100 in interest-sensitive assets, resulting in a $10 decrease in net interest income.

When interest rates fall by 1%, the bank's net interest margin would decrease by 10 basis points. If the bank's initial net interest margin was 3%, it would decline to 2.9%.As a result, we can see that a bank's interest rate sensitivity gap can have a significant impact on its profit.

When interest rates fall, banks with a negative gap can expect to see a decline in their net interest margin and profitability. Therefore, banks must monitor their interest rate sensitivity gaps and assess the potential impact of fluctuations in interest rates.

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This unit's government and public management clusters covered a wide range of routes.

Those in the government and public administration profession cluster are responsible for planning, supervising, and providing associated general purpose government services at the federal, state, and municipal levels.

This cluster contains seven distinct career paths:

Governance Governmental Security Service abroad People who work in the career field of the Foreign Service help to keep good ties between the United States and other countries. Immigrants who want to live or work in the United States are also helped by them. Most of these people work in diplomatic missions, consulates, and embassies in Washington, D.C.

Some examples of jobs are:

Ambassadorial Officer ,Officer Consular and Foreign Service .

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Answer: Common Practice

Explanation:

I don't have access to specific information regarding the hiring policies of Ethio Telecom or any other company. However, it is common practice for companies, especially large organizations, to advertise external vacancies and hire qualified candidates based on their qualifications, experience, and fit with the company's culture and values. Companies often have a structured recruitment process that involves screening applications, interviewing candidates, and selecting the most suitable candidate for the job.

That being said, the competition for jobs at large and well-established companies like Ethio Telecom can be significant, and meeting the job requirements and having relevant experience may not necessarily guarantee a candidate the position. It's always important to prepare well for the job application process, demonstrate a strong work ethic, and highlight your skills and experiences that align with the requirements of the job.

C) When the client holds stock issued by another municipal securities dealer is the circumstance in which it is unnecessary for a municipal securities dealer to follow special procedures when opening a municipal securities account.

Municipal securities dealers are required to follow special procedures when opening a municipal securities account. This is to ensure that the dealer is aware of the identity of its clients, the client's business, the purpose of their account, and the risk of illicit conduct. The rules governing the opening of accounts are contained in Municipal Securities Rulemaking Board (MSRB) Rule G-8. The dealer must obtain identifying information from the client to ensure that the client's identity is established.

The following steps must be taken by the dealer:

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Answer:punitive

Explanation:

Explanation:

Feedback is an essential component of the strategic management model. It is the process of providing information to individuals or organizations about their performance, behavior, or decisions, which can be used to improve their future actions. Feedback can come from various sources, such as customers, employees, shareholders, or other stakeholders, and can be used to evaluate the effectiveness of the strategy and make necessary adjustments.

Here are some reasons why feedback is important in the strategic management model:

In conclusion, feedback is a crucial component of the strategic management model. It helps in evaluating performance, identifying mistakes and opportunities, improving communication, and fostering innovation. Organizations that embrace feedback and use it to continuously improve their strategy are more likely to achieve their objectives and succeed in today's dynamic business environment.

For each of the following reasons, the market equilibrium maximises the total of producer and consumer surplus. The lowest-cost merchants make the items, though. Option a is Correct.

The cost to the sellers also outweighs the value to the purchasers at quantities higher than the equilibrium amount. As a result, the producer and consumer surpluses are maximised at the point of market equilibrium.

The total surplus of the consumer and producer is maximised at the point where supply and demand are equal. This gives the impression that the market's invisible hand directs buyers and sellers towards effective resource allocation. When there are market failures, resources are not allocated in an efficient manner. Option a is Correct.

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The given statement " Employees in countries that rank high on power distance are more likely to prefer a consultative, participative leadership style" is True because Power distance is the extent to which people in a culture accept an unequal distribution of power.

Countries that rank high on power distance, such as China and Malaysia, tend to have a hierarchical society, in which individuals have clearly defined roles and expectations. This kind of culture prefers a consultative and participative leadership style, in which the leader takes into account their subordinates’ opinions and ideas. A leader in a high-power distance culture is seen as someone who helps those below them to make decisions rather than taking decisions unilaterally. Such a leader is often seen as more trustworthy and respected than a leader who uses a top-down approach.

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The given statement " When customers and firms reach the friend level of their customer relationship, firms generally focus on providing value comparable to the competition" is False because the Friend level is the fourth stage of customer relationships, which comes after the Advocate and Partner phases.

It's characterized by a high level of collaboration between the client and the business. At this level, both the firm and the customer are equally focused on giving and getting value to each other. As a result, the emphasis is on co-creating value rather than merely providing value comparable to the competition.

When the client and the firm reach the Friend level of their customer relationship, the emphasis shifts from transactional interactions to personal interactions.

At this point, the business is less concerned with keeping the customer satisfied and more interested in creating unique, customized experiences that are tailored to the client's requirements.

Therefore, when customers and firms reach the friend level of their customer relationship, firms generally focus on providing value beyond what the competition offers.

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By informing current and future customers about your new product launches, exclusive deals, and enhancements, advertising can boost sales.

Even while advertising expenditures are on the rise, sales may not necessarily increase. Every continuing marketing initiative is ineffective to some extent. Even while occasionally changes to the product, the target market, the media, or the creativity may have an impact on sales, more advertising does not directly affect sales.

The effectiveness of advertisements depends on the factors they support. Creative message, the quality of the products, user experiences, the brand story, the price, the promotion, the endorsement, etc. are all important factors in advertising. A compelling tale can get more attention through advertising, but not more. Poor-quality products or subpar customer service will not be promoted in advertisements.

Boost consumer awareness of your company and brand. Your products or services should be marketed with their benefits in mind. Offer additional details regarding your company. Increase sales and demand.

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TRUE. Most small entrepreneurial ventures often have a very informal organizational structure when they first start out.

This is because they typically begin as sole proprietorships or partnerships, with a small number of employees, if any. In such cases, the owner or owners may be responsible for most aspects of the business, including sales, marketing, finance, and operations, without the need for a formal organizational structure.

As the business grows and becomes more complex, however, a more formal organizational structure may become necessary to ensure efficient operations and effective management. At this point, the business may need to hire additional employees, create specialized roles and departments, and establish more formal policies and procedures to guide decision-making and operations.

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If sales returns and allowances are high dollar amounts in comparison to initial sales income, there can be problems with the quality of the products.

Sales allowances and refunds are a line item on the income statement. Due to customer returns and sales allowances, this line item is intended to reduce sales. It is displayed as a decrease from the line item for gross sales.

Returns on sales have an impact on sales and cost of goods sold, which in turn affect gross profit. The tracking of all product returns and client reimbursements is done through an account called sales returns and allowances.

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Managers can attempt to enhance a company's stock price by increasing dividend payments to shareholders by at least $0.05 per share annually.

repurchasing shares of common stock, and making every effort to increase earnings per share on a yearly basis.

This plan focuses on increasing earnings per share, which can increase the company's appeal to investors, while also returning value to shareholders through dividend payments and share buybacks.

The other suggested solutions are ineffective means of increasing a company's stock price. For instance, maintaining the company's dividend payment ratio in the vicinity of 50% and repurchasing shares of common stock may be advantageous, but efforts to boost profitability or other elements that might support a higher stock price are not mentioned.

Investors are unlikely to view actions like increasing the dividend payout ratio to above 100% or slashing the dividend to zero while issuing additional shares of stock favorably because they suggest that the company may be having financial difficulties or may not be committed to returning value to shareholders.

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COMPLETE QUESTION -

Which of the following are effective ways to try to boost a company's stock price?

a) Strive to increase earnings per share, boost the company's dividend payout ratio to more than 100%, and increase the company's retained earnings.

b) Pay off all long-term debt as rapidly as possible, strive to achieve a credit rating of at least an A, and try to boost the company's image rating above 75.

c) Strive to achieve a ROE above 20%, quickly pay off all long-term debt, and keep the company's dividend payout ratio below 50%.

d) Strive to increase earnings per share each years, raise the company's dividend each year (ideally by at least $0.05 per share), and repurchase shares of common stock.

e) Increase the company's retained earnings each year, boost spending for corporate citizenship and social responsibility, and offer a wider variety of models/styles of branded footwear.

The deferral adjustment to record the amount of unearned service revenue that is now earned includes a debit to service revenue and a credit to unearned service revenue.

When a service company receives money from a customer, the money is recorded as unearned service revenue. This is because the company has not yet delivered the service for which it was paid.

When the company finally provides the service, it must adjust its accounts to reflect the fact that it has earned the revenue from the customer. This is known as a deferral adjustment.

A deferral adjustment occurs when you pay or receive cash in advance for a service that will be provided at a later date. The goal of deferral adjustments is to ensure that the revenue is recorded when it is actually earned, as opposed to when cash is received.

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The  journal entry which reflects the following transaction is given below:

Dr.  Cash                      50,000

    Cr.  Common Stock                 10,000

    Cr.  Additional Paid-in Capital   40,000

Journal entries are records of a company's commercial dealings. These transactions are documented in a journal, a book. The very first stage of the accounting cycle is represented by these entries. Diary entries adhere to double-entry accounting, in which each transaction is noted in a minimum of two different accounts.

Diary entries aid in the chronological tracking of all accounting transactions. This aids in avoiding more mistakes during the procedure. Also, these items are useful for creating other financial statements.

Since Cash = 10,000*5 = 50,000 is received

Common Stock = 10,000*1 =10,000 is issued thus credited.

Additional Paid in Capital = 10,000(5-1) = 40,000.

A firm keeps a diary of all of its daily financial dealings. All transactions have been accurately documented. The financial statements won't give a genuine and fair picture of the company's financial situation if the correct procedures aren't followed while creating a journal.

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Complete question:

Which Journal Entry Reflects The Following Transaction?: BOC Sold 10,000 Shares Of $1 Par Value Stock To Investors For $5 Per Share. A)Dr. Cash 50,000 Cr. Common Stock 10,000 Cr. Additional Paid-In Capital 40,000 B)Dr. Cash 10,000 Cr. Common Stock 10,000 C)Dr.

Which journal entry reflects the following transaction?:

BOC sold 10,000 shares of $1 par value stock to investors for $5 per share.

a)Dr. Cash 50,000

Cr. Common Stock 10,000

Cr. Additional Paid-in Capital 40,000

b)Dr. Cash 10,000

Cr. Common Stock 10,000

c)Dr. Cash 50,000

Cr. Common Stock 50,000

d)Dr. Cash 50,000

Cr. Common Stock 40,000

Cr. Additional Paid-in Capital 10,000

e)Dr. Common Stock 10,000

Dr. Additional Paid-in Capital 40,000

Cr. Cash 50,000

People's perception of outcome fairness depends on their judgment that the consequences of a decision to employees are just. option E is correct.

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Answer:

a. To break-even, the total revenue must equal the total cost. Let x be the number of new products that must be sold in order to break-even. Then, the equation is:

Total revenue = Total cost

8x = 20000 + 5x

3x = 20000

x = 20000/3

x ≈ 6666.67

Therefore, the shop owner must sell at least 6,667 new products in a month to break-even.

b. If 2,000 units are sold in a month, the total revenue is:

Total revenue = Selling price x Quantity

Total revenue = 8 x 2000

Total revenue = $16,000

The total cost is the sum of the fixed cost and the variable cost:

Total cost = Fixed cost + Variable cost

Total cost = 20000 + 5 x 2000

Total cost = $30,000

Therefore, the profit (loss) would be:

Profit (loss) = Total revenue - Total cost

Profit (loss) = 16,000 - 30,000

Profit (loss) = -$14,000 (loss)

c. To realize a profit of $5,000, the equation for total profit is:

Total profit = Total revenue - Total cost

Total profit = (Selling price x Quantity) - (Fixed cost + Variable cost)

Total profit = (8x) - (20000 + 5x)

Setting the equation equal to the desired profit and solving for x:

5000 = (8x) - (20000 + 5x)

5000 = 3x - 20000

25000 = 3x

x ≈ 8333.33

Therefore, the shop owner must sell at least 8,334 new products in a month to realize a profit of $5,000.

Explanation:

The given statement "The tradeoff between inflation and unemployment does not exist in the long run because people will adjust their expectations so that expected inflation equals the inflation rate" is true because in macroeconomics, the relationship between inflation and unemployment is depicted by the Phillips curve.

According to the Phillips curve, there exists an inverse relationship between inflation and unemployment. This means that if the unemployment rate is high, the inflation rate is low, and if the unemployment rate is low, the inflation rate is high. However, this inverse relationship is not sustainable in the long run.

This is because of two reasons: Rational Expectations Hypothesis (REH) and Natural Rate Hypothesis (NRH).According to the Rational Expectations Hypothesis (REH), individuals or economic agents in an economy make rational decisions based on the available information.

This means that if there is high inflation, people will expect it to persist in the future. Consequently, they will demand higher wages to maintain their real wages, which will lead to an increase in production costs.

Therefore, if policymakers attempt to reduce unemployment below its natural rate, it will lead to an increase in inflation without any long-term benefits to employment.

For such more question on macroeconomics.:

https://brainly.com/question/28183019

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