define federal deposit insurance corporation.​

Answers

Answer 1
The Federal Deposit Insurance Corporation, or FDIC, protects the money people deposit into their bank accounts. When a bank fails, or when a financial crisis induces large numbers of people to withdraw their money, account holders may lose the money they deposited. The FDIC was created to not only establish a reserve of cash against deposits but give people confidence in the banking industry.

Related Questions

thompson corparations unadjusted trial balance includes the following balances assume normal balance accounts reciavable 1,865,000 allowance for doubtfull accounts 35,000 bad debts are estimated to be 6% of outstadning recievables what amount of bad debt expense will the company record

Answers

Answer: $76900

Explanation:

The following information can be deduced from the question:

Accounts receivable = $1,865,000

Allowance for doubtful debts = $35000

Estimated bad debt = 6% × $1,865,000 = $111900

The amount of bad debt expense that the company will record will be:

= Estimated bad debt - Allowance for doubtful debts

= $111900 - $35000

= $76900

Supposed that the daily wage for miners is $110 and that of the muckers is $90 per day. Find the long run cost function for US Iron & Steel Co. (x teams produce 10x tons of iron ore per day.)

Answers

Answer:

$200 to produce 10x ton of iron ore

Explanation:

The cost for one day to produce 10x tons of iron ore is calculated as follows.

1 miner and 1 mucker work together to make 10x ton of iron ore where,

1 miners wage = $110

1 mucker wage = $90

This makes a total of $200 to produce 10x ton of iron ore.

The costs in the long run will remain same because the wages are fixed if the wages are negotiable or varies then in the long run the cost function can differ.

Swifty Enterprises reported cost of goods sold for 2020 of $1,453,700 and retained earnings of $5,392,600 at December 31, 2020. Swifty later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $102,820 and $37,880, respectively. Determine the corrected amounts for 2020 cost of goods sold and December 31, 2020, retained earnings.

Answers

Answer:

Corrected cost of goods sold $1,388,760

Corrected retained earnings $5,354,720

Explanation:

First, we need to determine corrected cost of goods sold

Corrected cost of goods sold at December 31, 2020

= Beginning inventory - Purchases - Ending inventory

= $1,453,700 - [$102,820 - $37,880]

= $1,453,700 - $64,930

= $1,388,760

The December 31,2020 corrected retained earnings would be computed as;

= Ending retained earnings - Overstated ending inventories at December 31, 2020

= $5,392,600 - $37,880

= $5,354,720

9. Stabilization Suppose the US educational system improves, making workers more productive. If the federal reserve is trying to stabilize the price level in response, they should A. do nothing, because prices will not change anyhow. B. do nothing, because prices cannot be prevented from changing in the long run C. sell bonds in open market operations. D. lower the reserve requirement. E. increase the discount rate F. Raise taxes. G. Increase government spending.

Answers

Answer:

d

Explanation:

If workers become more productive, the supply curve shifts rightward. As a result prices would fall. In a bid to stabilise price, the federal reserve would conduct an expansionary monetary policy to increase money supply in the economy

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing reserve requirement and open market purchase are ways of carrying out expansionary monetary policy

Increasing discount rate and selling bonds are examples of contractionary monetary policies. Contractionary monetary policy : these are policies taken to reduce money supply.

Raising tax is an example of contractionary fiscal policy

Increasing government spending is an example of expansionary fiscal policy

Macroeconomic factors that influence interest rate levels
1. T or F: During the credit crisis of 2008, investors around the worls were fearful about the collapse of real estate markets, shaky stock markets, and illiquidity of several securities in the US and several other nations. The demand for US treasury bonds increased, which led to a rise in their price and a decline in their yields.
2. T or F: When the ecnomy is weakening, the Fed is likely to increase short-term interest rates.
3. T or F: When the Fed increses the money supply, short-term interest rates tend to decline.
4. T of F: the Federal Reserve Board has significant influence over the level of economic activity, inflation, and interest rates in the US.

Answers

Answer:

1. True

2. False

3. False

4. True

Explanation:

Federal excise duty is the government rate which is set to control the money supply in an economy. When Fed rises the interest rate decline while money supply increases.

The crisis during 2008 led the world towards declining their economic growth. The shaky stock market runs fear in the investors and they withdrew their money from the stock and other risky and invested their earning and savings in safe and secure treasury bonds. This led the government to raise the prices of treasury bonds and the returns of the bonds declined.

Michelle operates several food trucks. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction in each of the following situations.

a. Michelle moves her food truck between various locations on a daily rotation. Last week, Michelle was stopped for speeding. She paid a fine of $215 for speeding plus $170 for legal advice in connection with the ticket.
b. Michelle paid $865 to reserve a parking place for her food truck for the fall football season outside the local football arena. Michelle also paid $210 for tickets to a game for her children.
c. Michelle provided a candidate with free advertising painted on her truck during the candidate's campaign for city council. Michelle paid $960 to have the ad prepared and an additional $660 to have the ad removed from the truck after the candidate lost the election.

Answers

Answer:

a. Michelle moves her food truck between various locations on a daily rotation. Last week, Michelle was stopped for speeding. She paid a fine of $215 for speeding plus $170 for legal advice in connection with the ticket.

Speeding tickets and fines cannot be deducted as business expenses. But Michelle can deduct all legal expenses.

b. Michelle paid $865 to reserve a parking place for her food truck for the fall football season outside the local football arena. Michelle also paid $210 for tickets to a game for her children.

Michelle can deduct the $865 paid for the space outside the football field, but she cannot deduct the tickets (personal expenses).

c. Michelle provided a candidate with free advertising painted on her truck during the candidate's campaign for city council. Michelle paid $960 to have the ad prepared and an additional $660 to have the ad removed from the truck after the candidate lost the election.

Political donations are not deductible as business expenses.

Krepps Corporation produces a single product. Last year, Krepps manufactured 34,250 units and sold 28,400 units. Production costs for the year were as follows: Direct materials $284,275 Direct labor $140,425 Variable manufacturing overhead $256,875 Fixed manufacturing overhead $650,750 Sales totaled $1,434,200 for the year, variable selling and administrative expenses totaled $167,560, and fixed selling and administrative expenses totaled $215,775. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:

Answers

Answer:

just use the money the kreeps earned and buy your product's

Explanation:

Price Company had the following assets on January 1, 2022.

Item Cost Purchase Date Useful Life (in years) Salvage Value
Machinery $73,000 Jan. 1, 2012 10 $0
Forklift 32,000 Jan. 1, 2019 5 0
Truck 38,400 Jan. 1, 2017 8 3,000

During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,200. The truck was discarded on December 31.

Required:
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, no disposed assets.

Answers

Answer:

Machinery

Journal 1 - Recognizing disposal

Debit : Accumulated Depreciation $73,000

Credit : Cost $73,000

Forklift

Journal 1 - Updating Depreciation

Debit : Depreciation expense  $3,200

Credit : Accumulated depreciation $3,200

Journal 2 - Recognizing disposal

Debit : Cash $12,200

Debit : Accumulated Depreciation $22,400

Credit : Cost $32,000

Credit : Profit and Loss (profit on sale) $2,600

Truck

Journal 1 - Updating Depreciation

Debit : Depreciation expense  $4,425

Credit : Accumulated Depreciation  $4,425

Journal 2 - Recognizing disposal

Debit : Accumulated Depreciation $26,550

Debit : Profit and Loss (Loss on disposal) $46,450

Credit : Cost $73,000

Explanation:

Note : I will assume the straight line method for all the assets above for depreciation purposes.

therefore,

Depreciation = Cost - Salvage Value ÷ Useful Life

Machinery

Annual Depreciation = $7,300

Accumulated Depreciation to date of disposal = $73,000

Forklift

Annual Depreciation = $6,400 ($3,200 for 2022)

Accumulated Depreciation to date of disposal = $22,400

Truck

Annual Depreciation = $4,425

Accumulated Depreciation to date of disposal = $26,550

According to the theory of liquidity preferences, expanding the money supply will _____ nominal interest rates in the short run, and, according to the Fischer effect, expanding the money supply will _____ nominal interest rates in the long run. Group of answer choices increase; increase; increase; decrease decrease; increase decrease; decrease

Answers

Answer: decrease; increase

Explanation:

According to the Liquidity Preference theory, in the short run, increasing money supply will mean that there is more money in the economy which translates to more money for investment. This will lead to a decrease in interest rates as there are more sources of investment.

In the long run however, the Fischer effect shows interest will move with inflation. If money supply is expanded, it will lead to inflation in the long run because there will be more demand. This rise in inflation will cause interest rates to rise as well.

Parent Co. purchased the entire business of Subsidiary Co. including all its assets and liabilities for $600,000. Below is information related to the two companies: Parent Subsidiary Fair value of assets $1,050,000 $800,000 Fair value of liabilities 575,000 300,000 Reported assets 800,000 650,000 Reported liabilities 500,000 250,000 Net Income for the year 60,000 50,000 How much goodwill did Parent pay for acquiring Subsidiary

Answers

Answer:

$100,000

Explanation:

Calculation of Net amount payable:

Net Amount Payable = Fair Value of asset - Fair Value of liabilities = $800,000 - $300,000 = $500,000

Calculation of Goodwill that Parent pays to Subsidiary:

Goodwill = Actually paid amount - Net amount payable = $600,000 - $500,000 = $100,000

Assume that a state government currently provides no child-care subsidies to working single parents, but it now wants to adopt a plan that will encourage labor force participation among single parents. Suppose that child-care costs are hourly, and suppose the government adopts a child-care subsidy that pays $3 per hour for each hour the parent works, up to 8 hours per day. Draw a current budget constraint (net of child-care costs) for an assumed single mother and then draw in the new constraint. Discuss the likely effects on labor force participation and hours of work.

Answers

Answer:

The line on the graph will be parallel to the pre-subsidy line and the new constraint will then be equal to the points connecting the two lines.

Explanation:

The subsidy by government to single parents is $3 per hour for up to 8 hours. The total of subsidy will be $16 for each day. The labor force who were not receiving the subsidy before had steep indifference curve but now few workers will find utility maximization with flatter indifference curve so the workers will join the subsidy program.

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $58,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 3 percent of your annual salary in an account that will earn 11 percent per year. Your salary will increase at 6 percent per year throughout your career.
Required: How much money will you have on the date of your retirement 40 years from today?

Answers

Answer:

The amount you will have on the date of your retirement 40 years from today is $1,904,087.20.

Explanation:

This can be determined using the formula for calculating the future value of growing annuity as follows:

FV = M * (((1 + r)^n - (1 + g)^n) / (r - g)) ...................................... (1)

Where

FV = Future value or the amount on the date of retirement = ?

M = First annual deposit = Annual salary * Deposit percentage = $58,000 * 3% = $1,740

r = annual interest rate = 11%, or 0.11

g = salary growth rate = 6%, or 0.06

n = number of years = 40 years

Substituting all the values into equation (1), we have:

FV = $1,740 * (((1 + 0.11)^40 - (1 + 0.06)^40) / (0.11 - 0.06))

FV = $1,740 * 1,094.30298736951

FV = $1,904,087.20

Therefore, the amount you will have on the date of your retirement 40 years from today is $1,904,087.20.

Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $15, the cost of mowing the second lawn is $25, and the cost of mowing the third lawn is $40. His producer surplus on the first three lawns of the day is $100. If Ronnie charges all customers the same price for lawn mowing, that price is a. $20. b. $60. c. $80. d. $180.

Answers

Answer:

b. $60

Explanation:

Produced surplus = Price producer is able to sell - Price producer would be willing to sell

Price the producer is able to sell = Producer surplus + Price producer would be willing to sell

= $100 + ($15 + $25 + $40)

= $180 for 3 lawn

Therefore, if Ronnie charges are customers the same price for lawn mowing, that price is

= $180 / 3

= $60

What effect will firms entering have on the market​ price? When firms enter ​, A. the marginal cost of production will decrease ​, decreasing price. B. market supply will increase ​, decreasing price. C. market demand will decrease ​, decreasing price. D. the average total cost of production will decrease ​, decreasing price. E. market supply will decrease ​, decreasing price.

Answers

Answer:

b

Explanation:

when firms enter into an industry, there are more firms competing for customers. This would shift the demand curve to the right as supply increases. An increase in supply would lead to a reduction in price.

If firms leave the industry, there would be a reduction in supply and price would increase

Which of the following statements is CORRECT? a. More of Project A's cash flows occur in the later years. b. We must have information on the cost of capital in order to determine which project has the larger early cash flows. c. The crossover rate, i.e., the rate at which Projects A and B have the same NPV, is greater than either project's IRR. d. The NPV profile graph is inconsistent with the statement made in the problem. e. More of Project B's cash flows occur in the later years.

Answers

Answer: a. More of Project A's cash flows occur in the later years.

Explanation:

When a project has its cashflows occurring in later years, the NPV will be less because the discount rate would have a greater period to discount it in as opposed to cashflows that occur more recently which would receive less discounting from the discount rate.

As a result of Project A having more distant cashflows, the discount rate discounted its cash flows more which is why higher rates led to its NPV being zero because those higher rates got to discount it over a longer period.

The amount of money that is earned on a deposit is​

Answers

Explanation:

principal ...............

Answer:

Interest

Explanation:

interest is the amount that is earned on a deposit

As the marketing manager, you know the product (s) has to be right. The PC industry is competitive, lifecycles are short, and the marketing mix ingredients have to be correct.Looking at the points covered in products:Apply the theory of benefits to the computers MJA, Inc. wish to sell. What benefits are consumers really getting from purchasing one of MJA, Inc. PC’s? What particular product decisions are important in the product planning process?

Answers

Answer:

no answer

hmm i dont get it

Culver Company is involved in four separate industries. The following information is available for each of the four industries. Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets W $63,278 $14,930 $155,962 X 10,900 2,380 77,981 Y 27,275 (2,980) 18,823 Z 7,647 1,070 16,134 $109,100 $15,400 $268,900 Determine which of the operating segments are reportable based on the: Reportable Segments (a) Revenue test. select an operating segment (b) Operating profit (loss) test. select an operating segment (c) Identifiable assets test. select an operating segment eTextbook and Media

Answers

Answer:

                                                          Reportable Segments

(a) Revenue test.                                      W and Y

(b) Operating profit (loss) test.                W, X and Y

(c) Identifiable assets test.                      W and X

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation of the answers is now given as follows:

Note: See the attached excel file for the determination of the operating segments which are reportable (in bold red color).

Note that the criterion is that a segment is reportable if it contains an amount that is greater than 10% of the total amount. Otherwise, it is nonreportable.

Based on this criterion, we have the following from the attached excel file:

                                                          Reportable Segments

(a) Revenue test.                                      W and Y

(b) Operating profit (loss) test.                W, X and Y

(c) Identifiable assets test.                       W and X

The Production Department planned to work 8,000 labor-hours in March; however, it actually worked 8,400 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 134,730 Indirect labor $ 19,860 Utilities $ 14,570 Supplies $ 4,980 Equipment depreciation $ 54,080 Factory rent $ 8,700 Property taxes $ 2,100 Factory administration $ 26,470 Required: 1. Prepare the Production Department’s planning budget for the month. 2. Prepare the Production Department’s flexible budget for the month. 3. Prepare the Production Department’s flexible budget performance report for March, including both the spending and activity variances.

Answers

Answer:

The company had budgeted for an activity level of 8,000 labor-hours in March. Prepare the Production Department's planning budget for the month. Requirement #2. The company actually worked 8,500 labor-hours in March. Prepare the Production Department's flexible budget for the month

Explanation:

Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.
Fixed cost per unit $5.20
Variable cost per unit $10.81
Selling price per unit $34.55
Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places.)
Minimum transfer price $ per unit
Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. (Round answer to 2 decimal places.)

Answers

Answer:

See below

Explanation:

1. If the small motor division has excess capacity,

Minimum transfer price = Variable cost + Opportunity cost

Variable cost per unit = $10.81

Add:

Opportunity cost per unit = $0.00 (Because the company has sufficient excess capacity)

Minimum transfer price = $10.81

2. If the small motor division has excess capacity,

Minimum transfer price = Variable cost + Opportunity cost

Variable cost per unit = $10.81

Add:

Opportunity cost per unit = $23.74 (As the company has no excess capacity, contribution lost is the opportunity cost)

Minimum transfer price = $34.55

N.B

Contribution lost = Selling price per unit - Variable cost per unit

= $34,55 - $10.8 = $23.74

Glenville Company has the following information for April:

Cost of direct materials used in production $48,000
Direct labor 59,000
Factory overhead 37,000
Work in process inventory, April 1 40,000
Work in process inventory, April 30 40,000
Finished goods inventory, April 1 29,000
Finished goods inventory, April 30 18,000

Required:
For April, determine the cost of goods manufactured.

Answers

Answer:

cost of goods manufactured= $144,000

Explanation:

Giving the following information:

Cost of direct materials used in production $48,000

Direct labor 59,000

Factory overhead 37,000

Work in process inventory, April 1 40,000

Work in process inventory, April 30 40,000

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 40,000 + 48,000 + 59,000 + 37,000 - 40,000

cost of goods manufactured= $144,000

The corporate charter of Maine Yacht Corporation allows the issuance of a maximum of 3,000,000 shares of $1 par value common stock. During its first three years of operation, Maine issued 2,200,000 shares at $15 per share. It later acquired 30,000 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions:

a. How many shares were authorized?
b. How many shares were issued?
c. How many shares are outstanding?
d. What is the balance of the Common Stock account?

Answers

Answer:

a)3,000,000 shares

b)2,200,000 shares

c)2,170,000 shares

d)$2,200,000

Explanation::

a) Based on the information given 3,000,000 shares were authorized

b) Based on the information given 2,200,000 shares were issued

c) Calculation for many shares are outstanding

Outstanding shares= (2,200,000 issued-30,000 in treasury)

Outstanding shares=2,170,000 shares

d) Calculation for the balance of the Common Stock account

Balance of the Common Stock account = ($1 × 2,200,000 shares

Balance of the Common Stock account=$2,200,000

Suppose you have to wait in line to purchase a soft drink at a Missouri State - Tulsa football game. The drink costs one dollar. While waiting in line, you hear the crowd roar as someone scores a touchdown. While running back to your seat, you fall and spill your drink on another spectator. What is your opportunity cost for the drink?

A. the cost of the drink plus the lost enjoyment of not seeing Missouri State score another touchdown (it couldn't have been Tulsa)

B. the cost of the drink, the lost enjoyment of not seeing the Missouri State touchdown, your thirst (you didn't get a drink), and the discomfort (to the other spectator) of sitting in the sun with wet, sticky clothing

C. the lost enjoyment of not seeing the Missouri State touchdown, your thirst (you didn't get a drink), and the discomfort (to the other spectator) of sitting in the sun with wet, sticky clothing

D. the lost enjoyment of not seeing the Missouri State touchdown, your thirst (you didn't get a drink), and your discomfort (assuming the other spectator responded by throwing his drink in your lap) of sitting in the sun with wet, sticky clothing

Answers

C!!!!!!!!!!!!!!!!!!!!!!

Determine Cost of Land Four Corners Delivery Company acquired an adjacent lot to construct a new warehouse, paying $200,000 and giving a short-term note for $375,000. Legal fees paid were $6,000, delinquent taxes assumed were $4,100, and fees paid to remove an old building from the land were $15,500. Materials salvaged from the demolition of the building were sold for $2,600. A contractor was paid $900,000 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.

Answers

Answer:

$598,000

Explanation:

Calculation of the Cost of Land

Cash                                                                  $200,000

Note Payable                                                    $375,000

Legal fees                                                             $6,000

Delinquent taxes                                                  $4,100

Fees to Remove Old Building                           $15,500

Proceeds from Savages                                    ($2,600)

Total                                                                  $598,000

Therefore,

The cost of the land to be reported on the balance sheet is $598,000

Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the laborhours for the upcoming year at 52,000 labor-hours. The estimated variable manufacturing overhead was $2.78 per labor-hour and the estimated total fixed manufacturing overhead was $1,192,360. The actual labor-hours for the year turned out to be 52,600 labor-hours. The predetermined overhead rate for the recently completed year was closest to: A. $2.78. B. $25.45. C. $25.71. D. $22.93.

Answers

Answer:

Predetermined manufacturing overhead rate= $25.71 per direct labor hour

Explanation:

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (1,192,360 / 52,000) + 2.78

Predetermined manufacturing overhead rate= 22.93 + 2.78

Predetermined manufacturing overhead rate= $25.71 per direct labor hour

Marigold Company sells one product. Presented below is information for January for Marigold Company.
Jan. 1 Inventory 104 units at $5 each
4 Sale 79 units at $8 each
11 Purchase 145 units at $6 each
13 Sale 115 units at $9 each
20 Purchase 162 units at $6 each
27 Sale 107 units at $10 each
Marigold uses the FIFO cost flow assumption. All purchases and sales are on account.
Assume Marigold uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 110 units. (If no entry is required, select "No entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually)

Answers

Answer:

Jan 4

Dr Accounts Receivable 632

Cr Sales Revenue 632

Jan 11

Dr Purchases 870

Cr Accounts payable 870

Jan 13

Dr Accounts Receivable 1,035

Cr Sales Revenue 1,035

Jan 20

Dr Purchases 972

Cr Accounts payable 972

Jan 27

Dr Accounts receivable 1,070

Cr Sales Revenue 1,070

Jan. 31

Dr Inventory $660

Dr Cost of Goods Sold $1,702

Cr Purchases $1,842

Cr Inventory $520

Explanation:

Preparation of all the necessary journal entries, including the end-of-month closing entry to record cost of goods sold.

Jan 4

Dr Accounts Receivable 632

Cr Sales Revenue(79*8) 632

(to record Cost of Goods Sold)

Jan 11

Dr Purchases (145*6) 870

Cr Accounts payable 870

( to record the purchase)

Jan 13

Dr Accounts Receivable 1,035

Cr Sales Revenue(115*9) 1,035

(to record the cost of Goods Sold)

Jan 20

Dr Purchases(162*6) 972

Cr Accounts payable 972

( to record the purchase)

Jan 27

Dr Accounts receivable 1,070

Cr Sales Revenue(107*10) 1,070

( to record the cost of Goods Sold)

Preparation of the journal entry assuming the physical count indicates that the ending inventory for January is 110 units

Jan. 31

Dr Inventory $660

($6* 110)

Dr Cost of Goods Sold $1,702

($520+$1,842-$660)

Cr Purchases $1,842

($870 + $972)

Cr Inventory $520

(104* $5)

A bank has excess reserves of $5,000 and demand deposits of $50,000; the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, then this bank can lend a maximum of Multiple choice question. A) $1,000. B) $1,500. C) $2,000. D) $2,500.

Answers

Hiiioo it’s D) 2,500

If the reserve ratio is raised to 25 percent, then this bank can lend a maximum of $2,500. Option (d) is correct.

What do you mean by Ratio?

When two objects are related using numbers or amounts, the relationship is known as a ratio.

Money stored in demand accounts at commercial banks is known as demand deposits or checkbook money. These account balances are typically regarded as money and make up the majority of a nation's strictly defined money supply. Simply explained, these are bank deposits that can be withdrawn immediately and without warning.

Demand deposits are typically regarded as a component of the strictly defined money supply since they can be used to pay for goods and services and to repay debts via checks and drafts. Demand deposits and currency are typically included in definitions of a nation's money supply. Demand deposits make up the majority of the money supply in the majority of nations.

Therefore, Option (d) is correct. If the reserve ratio is raised to 25 percent, then this bank can lend a maximum of $2,500.

Learn more about Ratio, here;

https://brainly.com/question/13419413

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The Mighty Music Company produces and sells a desktop speaker for $100. The company has the capacity to produce 50,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit level costs $ 45 Product level costs $ 15 Facility level costs $ 5 The company has received a special order for 500 speakers. If this order is accepted, the company will have to spend $15,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order

Answers

Answer:

$75

Explanation:

Calculation to determine what selling price will the company be indifferent between accepting and rejecting the special order

Using this formula

Selling price between accepting and rejecting the special order= ( Additional cost ÷ Units sold number) + Unit level Cost

Let plug in the formula

Selling price between accepting and rejecting the special order= ( $15,000 ÷ 500 ) + $45

Selling price between accepting and rejecting the special order= $30 + $45

Selling price between accepting and rejecting the special order= $75

Therefore The selling price that the company will be indifferent between accepting and rejecting the special order is $75

Kathy purchased a $2,000 digital TV from Young's Appliances. She will make 12 equal payments over the next year to pay for it. She is using:

A. closed-end credit.
B. open-end credit.
C.revolving check credit.
D.a line of credit.

Answers

Answer:

A. closed-end credit

Explanation:

Closed-end credit is a loan or a credit type where the funds would be dispersed at the time when the loan is closed and it would be paid back by involving the interest & finance charges

Since in the question it is mentioned that she would make the payment in 12 equal payments so here she is using closed-end credit

hence, the correct option is a.

Answer:

Closed-end credit

Explanation:

I got it right on the test

A local Chevrolet dealership carries the following types of vehicles:

Inventory Items Quantity Cost per Unit Market (replacement cost) per Unit
Vans 3 $22,000 $20,000
Trucks 6 17,000 16,000
2-door sedans 2 12,000 14,000
4-door sedans 7 16,000 19,000
Sports cars 3 32,000 35,000
SUVs 5 28,000 23,000

Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.

Required:
a. Compute the total cost of the entire inventory.
b. Determine whether each inventory item would be reported at cost or market. Multiply the quantity of each inventory item by the appropriate cost or market amount and place the total in the "Lower-of-Cost-or-Market" column. Then determine the total for that column.
c. Compare your answers in Requirement 1 and Requirement 2 and then record any necessary adjustment to write down inventory from cost to market value.
d. Discuss the financial statement effects of using lower-of-cost-or-market to report inventory.

Answers

Answer:

Explanation:

Since the table doesn't show up correctly, the first dollar value is the Cost per Unit of the vehicle, while the second dollar value is the Market Cost per Vehicle.

a. If we compute the cost using the Cost per Unit then they would be the following.

Vans:   3 * $22,000 = $66,000Trucks: 6 * $17,000 = $102,0002-Door Sedans: 2 * $12,000 = $24,0004-Door Sedans: 7 * $16,000 = $112,000Sports Cars: 3 * $32,000 = $96,000SUV's: 5 * $28,000 = $140,000Total Inventory: $504,000

b. The "Lower-of-Cost-or-Market" basically states that whatever of the two prices is lower is ultimately the one that is recorded as the cost. Therefore, under this method the costs would be the following...(Purchase Cost or Market Cost)

Vans:   3 * $20,000 = $60,000 MarketTrucks: 6 * $16,000 = $96,000 Market2-Door Sedans: 2 * $12,000 = $24,000 Purchase Cost4-Door Sedans: 7 * $16,000 = $112,000 Purchase CostSports Cars: 3 * $32,000 = $96,000 Purchase CostSUV's: 5 * $23,000 = $115,000 MarketTotal Inventory: $504,000 Purchase Cost

c. There were only 3 changes made from from requirement 1 and 2 these were the changes in total cost...

Vans: $60,000 - $66,000 =  - $6000Trucks: $96,000 - $102,000 = - $6000SUV's: $115,000 - $140,000 = - $25,000

d. This allows companies to report losses at a much more reasonable and consistent way. Thus allowing profits to be more predictable.

a. Total inventory cost: $504,000

b. Total inventory at lower-of-cost-or-market: $503,000

c. Adjustment to write down inventory: -$37,000

d. Using lower-of-cost-or-market to report inventory allows for more realistic and conservative reporting, reflecting the decrease in market value.

a. If we compute the cost using the Cost per Unit then they would be the following.

Vans:   3 * $22,000 = $66,000

Trucks: 6 * $17,000 = $102,000

2-Door Sedans: 2 * $12,000 = $24,000

4-Door Sedans: 7 * $16,000 = $112,000

Sports Cars: 3 * $32,000 = $96,000

SUV's: 5 * $28,000 = $140,000

Total Inventory: $504,000

b. The "Lower-of-Cost-or-Market" basically states that whatever of the two prices is lower is ultimately the one that is recorded as the cost. Therefore, under this method the costs would be the following...(Purchase Cost or Market Cost)

Vans: 3 * $20,000 = $60,000 (reported at market)

Trucks: 6 * $16,000 = $96,000 (reported at market)

2-Door Sedans: 2 * $12,000 = $24,000 (reported at cost)

4-Door Sedans: 7 * $16,000 = $112,000 (reported at cost)

Sports Cars: 3 * $32,000 = $96,000 (reported at cost)

SUVs: 5 * $23,000 = $115,000 (reported at market)

Total for "Lower-of-Cost-or-Market" column: $60,000 + $96,000 + $24,000 + $112,000 + $96,000 + $115,000 = $503,000

c. The necessary adjustment to write down inventory from cost to market value is as follows:

Vans: -$6,000

Trucks: -$6,000

SUVs: -$25,000

d. Using the lower-of-cost-or-market method to report inventory allows companies to recognize and account for potential declines in the market value of their inventory.

By valuing inventory at the lower cost or market value, it ensures a conservative approach and provides a more accurate representation of the company's financial position.

This approach helps in reflecting the true economic value of inventory and potential losses associated with declines in market value.

Learn more about inventory here:

https://brainly.com/question/29944146

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