A formal report may be defined as a document in which a writer analyses findings to solve a problem.
A formal report is a comprehensive analysis that helps decision-makers in business, industry, and government. Formal reports analyze data and other information, draw conclusions, and suggest solutions for problems that have been recognized.
Formal reports can be classified as analytical or informational, depending on the purpose that is stated at the start of the report. Informational reports offer data or facts rather than recommendations. Data and facts are also provided in analytical reports, but they also analyze and interpret data to make recommendations.
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a company issued 5%, 20-year bonds with a face amount of $80 million. the market yield for bonds of similar risk and maturity is 6%. interest is paid semiannually. at what price did the bonds sell?
The bond will sell at a price equal to $70754091.21.
If a bond is not earning at the market interest rate and the bond is at a lost and the owner of the bond feels that he will incur loss by keeping the bond so he sells the bond. He takes into account all the factors of the bond and determines the current selling price of the bond. According to the question, the face value of the bond is $80000000 and the coupon rate is 5%, the market interest rate is 6% and the maturity period for the bond is equal to 20 years. The selling price of the bond is calculated and attached with the answer. We find that the bond price that is calculated is lower than the par value the bond should be selling at a discount.
The formula for calculating Bond price will be expressed as
Bond Price = C × [1 - (1 + r)⁻ⁿ]/r + [F/(1 + r)ⁿ]
where F = Face/Par value of bond
r = Yield to maturity
C = periodic coupon payment
n = number of periods till maturity
So, Bond Price = 0.05 × [1 - (1 + 0.06)⁻⁶]/r + [$80000000/(1 + 0.06)⁶]
Bond Price = $70754091.21
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Which mesopotamian people were known for their seafaring skills and extensive trade?.
The Phoenicians, a Mesopotamian people, were known for their seafaring abilities and extensive trade.
Phoenicia was an ancient thalassocratic culture that originated in the Levant region of the eastern Mediterranean, primarily in modern Lebanon. The realm of the Phoenician city-states expanded and shrank during their history, and they had various enclaves such as Arwad and Tell Sukas (modern Syria). The main region in which the Phoenician culture originated and prospered extended from Tripoli and Byblos in northern Lebanon to Mount Carmel in contemporary Israel. At their peak, the Phoenician territories in the Eastern Mediterranean stretched from the mouth of the Orontes River to Ashkelon. Beyond its heartland, the Phoenician culture spanned the Mediterranean from Cyprus to the Iberian Peninsula.
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What term refers to retailers trying to get ahead on Black Friday sales by opening late on Thursday evening?
For many years, businesses pushed the start of Black Friday sales earlier and earlier until they finally opened on Thanksgiving night.
Kmart opened its doors at 7 PM on Thanksgiving Day 2009 so that customers may avoid the traffic on Black Friday and make it home in time for dinner with their families. Two years later, on what became mockingly known as "Black Thursday," several stores started opening at 8 or 9 PM. Other retailers have continued this practice in succeeding years, either opening Thanksgiving Day earlier and earlier or staying open all day, starting early in the morning. Instead, the terms "Gray Thursday" or "Brown Thursday" have been adopted in some retail and media sources.
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In what pricing strategy are prices lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices?.
A price skimming strategy refers to when an e-commerce business charges the highest initial price that customers will pay, then lowers it over time. As demand from the first customers is satisfied and more competitors enter the market.
A skimming crime can be easy tax evasion: the owner of a business might also fail to "ring up" a transaction and pocket the coins, hence converting a patron's charge without delay to the proprietor's personal use with out accounting for the profit, thereby the proprietor avoids paying both commercial enterprise or non-public income taxes on it. A well-known example of this crime took place at Studio 54 discotheque,[1] which changed into compelled to close as a end result. Skimming at casinos is related to the investment of prepared crime.
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this year bill purchased 1,000 shares of cain common stock for $12 per share. at year-end, the cain shares were worth $32 per share. what amount must bill include in income this year?
Bill paid $12 a share this year to buy 1,000 shares of Cain common stock. The value of the Cain shares at year's end was $32 per share. Up until the stock is sold, there is no realisation.
The realisation principle states that revenues are not recognised until they are actually realised. The moment at which profits are achieved is contingent. For instance, money is generated when goods are delivered to clients rather than when the delivery contract is signed.
One of the cornerstones of contemporary accounting, the realisation principle of accounting, offers a direct response to this query. The accrual system of accounting was also created concurrently by the realisation principle.
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you had planned on getting to work early to finish an important project that is due today, but your car won't start. you know you have the mechanic's number somewhere, but you can't remember where you put it. after searching all the logical places, you still cannot locate it. now that you will be late, you will not have time to finish your project, which was assigned to you two weeks ago. you start to panic, and the clock keeps ticking. in a written analysis, pinpoint three organization-related problems in this scenario. then, provide a technique or suggestion that would either eliminate each problem or reduce its effects.
The best course of action at this moment is "DELEGATION OF WORK," which will solve all other issues. One can get in touch with a member of our team or a colleague who can help finish the project work on time.
To remove any potential impediments or issues. First and foremost, three organization-related problems in this scenario, as the primary title implies, this issue has developed as a result of a deficiency in one of the key competencies, namely, time management.
Setting a deadline for finishing your job is an extremely crucial step.
Let's now examine the three main organizational challenges that this circumstance raises:
Maintaining a high level of customer service is essential in the present competitive environment, but delays in the job may put it in jeopardy and make customers unhappy. This must be minimized as a result.
Maintaining the Brand Image: It should go without saying that if your clients experience poor customer service and your services fall short of their expectations, your brand image will suffer and they will immediately choose different businesses.
Financial loss: The company will almost likely suffer a financial loss if a customer leaves because they won't choose us anymore, which will diminish sales volume and profitability.
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___ board is a water-resistant material used as a backing for ceramic tile in areas that have high moisture content, such as near a shower, tub or spa.
a) Wet
b) Green
c) Blue
d) Bypsum
Gypsum board is a water-resistant material used as a backing for ceramic tile in areas that have high moisture content, such as near a shower, tub or spa.
What is Gypsum ?
With the chemical formula CaSO 2H2O, gypsum is a soft sulfate mineral made of calcium sulfate dihydrate. It is widely mined, used as fertilizer, and the primary component of numerous plaster, sidewalk or blackboard chalk, and drywall products.
For usage as plaster of paris and as construction materials in plaster, Keene's cement, board products, tiles, and blocks, around three-fourths of the entire production is calcined.
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Demetri overhears his colleague say, "I cannot believe the Yankees lost that game! Did you see that home run?" How would Demetri BEST classify this type of communication
introductions
small talk
making a request
giving condolences
If Demetri overhears his colleague say, "I cannot believe the Yankees lost that game! Did you see that home run?" Demetri would BEST classify this type of communication as: D. giving condolences.
What is communication?Communication can be defined as the way in which two or more people tend to interact with one another. Communication can be inform of written, verbal or non-verbal.
This scenario is an example of giving condolence based on the fact that the Demetri colleague is showing empathy as well as giving condolence because yankees lost the games.
Therefore the correct option is D.
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If product demand is relatively elastic, what will be the effect on the total revenue if the price is increased?.
If product demand is relatively elastic, total revenue will decrease if the price is increased.
If demand is elastic, a price rise will result in a decrease in overall revenue. A drop in demand for a good is caused by a rise in the price of the good. Additionally, that product's revenue starts to decline. Price increases cause total revenue to start shifting the other way, changing the percentage of quantity demand. As a result, when the price of any commodity increases, total income decreases.
If a product's demand is relatively elastic, a rise in price will result in lower total revenue.
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what factors determine your decision to go and physically see a movie in a theater, rather than waiting for it to appear on cable or streaming services (netflix, on-demand, etc.)?
Full intended experience, social space of the theater, bigger screen, quality time with peers, and disruption-less environment are some of the factors which influence my decision to go to the theater.
In the world of OTT and streaming services, the way people watch movies has changed. These provide whole things at our fingertips, however, still, most the people choose theater when it comes to watching a new movie of their favorite which gives us the idea that cinema still holds its importance in the real world. Some of the crucial factors are there which can't be replaced by cable or streaming services.
Big screen and surround sound are still the souls of cinema that the audience enjoys.Physically going out to movies can enhance our bonds with peers and socialization.There are some die-hard fans who always wanted to give attendance on their first day of a movie for their favorite actor.To learn more about Streaming services, follow the below link:
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sales volume 100,000 units 96,000 units sales price $ 4 per unit $ 3.90 per unit materials usage 40,000 gallons 42,000 gallons labor price 12.50 per hour 12.45 per hour the sales volume variance was: multiple choice $16,000 unfavorable. $25,000 unfavorable. $16,000 favorable. $25,000 favorable
Sales volume 100,000 units 96,000 units sales price $ 4 per unit $ 3.90 per unit materials usage 40,000 gallons 42,000 gallons labor price 12.50 per hour 12.45 per hour the sales volume variance was $25,000 unfavorable.
What is sales volume variance?
By calculating the gap between actual and budgeted sales volume, professionals can measure the effectiveness of their sales efforts. They might examine their actual and planned sales volumes, average profit, revenue per unit, and contribution per unit to achieve this.
The difference between the actual and anticipated number of units sold, multiplied by the planned price per unit, is the sales volume variation. The equation is: Sales volume variance = (Actual units sold - Budgeted units sold) x Budgeted price per unit.
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a 13 m2 solar array is installed in area that receives an annual average daily solar resource of 4.62 kwh/m2/day. the project is expected to cost a total of $13,021 over the 20 year lifetime of the project. what is the levelized cost of energy (lcoe) for this solar array project
For this solar array project, the Levelized cost of energy (lcoe) is 0.03714 KWL.
The solar array project's Levelized cost of energy (LCOE) relationship
= Total cost of ownership for a solar plant / Total energy output during the course of a solar project
Consequently, it is assumed that the 13m² solar array receives 4.65 kWh/m²/day of daily solar resources.
Therefore, the total daily energy received by the 13m² solar arrays is
4.65 * 13 = 60.45 kWh/day.
It therefore received = 60.45 * 365 = 22064.25 kWh/year for the full year.
The total energy received over the course of a 16-year solar project is equal to 22064.25 kwh/year * 16 years = 353028 kwh.
Additionally, the estimated project cost over these 16 years is 13114.
In light of this, LCOE = Total life-cycle cost of the solar project / Total energy output during the course of a solar project
LCOE = 13114 / 353028 = 0.03714 KWL
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carlton polish teaching 4. what is the polish/cleaning supplies market like? (size, market structure, segmentation, demand among customers and distributors) 5. what is your assessment of the carlton polish and why? (strategy, profitability, balance sheet, pro forma financials). 6. what is carlton polish worth? (perform discounted cash flow valuation, use discount rate 14.4%, to calculate enterprise value, and then equity value?). why is this not a true reflection of the value of the company to charlie carleton? 7. what should charlie carlton do? (should he buy or sell?) what would you do?
Cleaning products and services for institutional and industrial customers cost more than $4.5 billion. Contract cleaning companies, independent cleaning supply distributors, and cleaning product manufacturers who sell directly to customers are the three market segments.
How would you rate the Carlton polish, and why? (Strategy, financial projections, profitability, balance sheet)
Strong brand recognition for Carlton Polish aids distributors in marketing the product. Because the company educates the distributors on the Carlton items, they promote Carlton's goods. The selling, general, and administrative activities of Carlton account for more than 30% of its sales.
Additionally, executive summaries represent 10% of sales. In particular, if one of the two executive salaries will be eliminated by this proposed sale, executive salaries shouldn't rise by 10% annually along with sales.
What is the value of Carlton Polish? (Conduct a discounted cash flow valuation, use a 14.4% discount rate, and get the enterprise value and equity value.)
Value of Carlton Polish: $4,410,000 (from equity value). Given that he includes in executive wages, this may not be an accurate picture of the business. The company's value, after deducting the executive salaries, is about $6.5M at a 5% growth rate. The company is worth about $5.5M after deducting half of the executive salaries.
The company is worth about $7 million with an 8% growth rate. A 10% growth rate would put the company's value at about $12 million. Therefore, the company's actual valuation ought to be significantly higher than the planned one.
What ought Charlie Carlton to carry out? Should he purchase or sell? How would you respond?
Miller and Carlton each own a sizable portion of the business. Spending $2.5M on the acquisition will slow down the company, which has experienced good growth of 20% thus far. Additionally, the business has been run by the Carlton family for over 100 years, has a strong brand, and is recession-proof.
I would purchase Miller's business and then sell it to a significant corporation. Many businesses had been pursuing Carlton to buy the business. The large corporation will aid Carlton Polish's rapid growth.
A $2.5 million debt owed by Carlton will be discharged from the business. This can hinder the company's expansion. Selling the business to a different company will therefore enable Carlton Polish to continue experiencing its rapid growth.
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a manager purchased better quality materials for a slightly higher cost than anticipated. however, as a result, there was less spoilage than normal. what is the effect on the price and quantity variances respectively?
A manager purchased better quality materials for a slightly higher cost than anticipated. however, as a result, there was less spoilage than normal. The effects on the price are unfavorable and on quantity are favorable.
Quality is the scope at which point an object or system (for instance, process, crop, or service) answers a particularized set of attributes or necessities. Good quality administration can embellish your organization's brand and reputation, assure it against risks, increase allure effectiveness, boost allure profits and weaken waste, and position it to persist increase.
Spoilage is spending or deficit of material that happens during the production process. It can still be used to categorize inadequately broken material that is to say secondhand for refining a production. Spoilage is used to apply most commonly for natural resources whose age is very short.
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eve's apples opened its business on january 1, 2021, and paid for two insurance policies effective that date. the policy for equipment damage was $34,920 for 18 months, and the crop damage policy was $12,300 for a two-year term. what is the balance in eve's prepaid insurance as of december 31, 2021?
$25,200 is the balance in eve's prepaid insurance as of December 31, 2021.
What is insurance ?Insurance refers to the one way to manage risk. When you buy insurance, you are buying protection against unexpected balance losses. If something bad happens to you, the insurance company will pay you, or someone you choose.However, there are four types of insurance that most financial experts recommend for all of us life, health, cars and long-term disability”.Contract details such as contract period, number, and premium. Name of insured person and property (if applicable). Coverage and corresponding deductible limits. A list of supplements included in the policy, or their total number.Insurance is a financial safety net that helps you and your loved ones recover after something bad happens, such as an accident. When you purchase insurance, you receive an insurance policy. This is a legal contract between you and your insurance company.To learn more about insurance from the given link :
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one form of power moves is enlisting the support of allies, which can help the other party see the advantage of negotiating. True or False
The statement that one form of power moves is to enlist the support of allies for your rivals to see the advantage of negotiating is True.
Why should allies be enlisted?When it comes to navigating the world of business, sometimes there will be a need to enlist the help of allies. Allies can help a business or party to overcome their rivals and become more profitable.
One way that allies are able to do this is by showing the other party, or your rivals, that there is a need to negotiate to get stonger instead of compete. This can bring both parties to the negotiating table.
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melora has a sick child at home. her employer allows her to for a week, so she can work from home, set her own hours, and complete most of her work while caring for her child. question 1 options: a) outwork b) telecommute c) teleconference d) work-sharing
She has child at home. her employer allows her to telecommute for a week, so she can work from home, set her own hours, and complete most of her work
Hence, option B is correct.
What do you mean by Telecommute?
Telecommuting is an opportunity as well as the ability of an employee to complete work assignments from outside the workplace by using telecommunications tools such as email, phone, and apps. It requires in person office Attendance sometimes
It provides
The flexibilitybalanced work-home life improve employee morale. Reduced operational costs Reduced expenses for employees.Easier to focus.Hence , She has child at home. her employer allows her to telecommute for a week, so she can work from home, set her own hours, and complete most of her work
Hence, option B is correct.
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if the cross elasticity of demand for two goods is zero: group of answer choices the goods are substitutes the goods are compliments one of the goods is a normal good and the other good is an inferior good the goods are not related both goods are normal goods
B) The goods are complementary if the cross elasticity of demand for the two products is zero.
Cross elasticity: what is it?How responsively consumers buy more of one commodity when the price of another good rise is measured by an economic concept called the cross elasticity of demand.
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.
The cross elasticity of demand in economics describes how responsive a market is to changes in the price of one good relative to another.
What Does Demand's Cross Elasticity Measure?
Cross elasticity of demand assesses how two products are related when one of their prices changes. It displays how demand for one product changes relative to another as the price of one increases or decreases.
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sat market research had $150,000 in revenue and $200,000 in expenses last year. sat market research experienced which of the following last year? multiple choice a profit a competitive disadvantage a loss economic inequity competitive inequity
sat market research had $150,000 in revenue and $200,000 in expenses last year. sat market research experienced Loss of the following last year.
Revenue is the money made from regular business operations and is calculated by multiplying the average sales price by the quantity of units sold. In order to calculate net income, costs must be deducted from the top line (or gross income) figure. On the income statement, revenue is also known as sales. Revenue only includes the proceeds from sales; income and profit also include the costs incurred in generating revenue and reflect net (as opposed to gross) earnings.
Market research, also referred to as "marketing research," is the procedure used to assess the viability of a new service or product by conducting research with prospective customers. Market research enables a business to identify the target market and gather feedback from customers regarding their interest in the good or service as well as opinions.
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which of the following statements is correct regarding fundamental and technical analysis? a) technical analysis is considered to be valid only under the weak form of the efficient market hypothesis. b) fundamental analysis may provide better returns under the weak form of the efficient market hypothesis. c) top-down analysis starts with examining individual companies, and then examining the impact of the overall economy on that particular company. d) an example of technical analysis would be an investor looking at debt-to-equity ratios and price-to-earnings ratios.
Fundamental analysis may provide better returns under weak form of the efficient market hypothesis is correct regarding the fundamental and technical analysis.
What is efficient market hypothesis?According to the efficient-market hypothesis (EMH), which is a theory in financial economics, asset prices accurately reflect all available information. Since market prices should only respond to fresh information, it follows that it is impossible to continually "beat the market" on a risk-adjusted basis. EMH only produces testable predictions when linked with a specific risk model because it is expressed in terms of risk adjustment. As a result, market anomalies—that is, departures from particular risk models—have been the focus of financial economics research at least since the 1990s. Bachelier, Mandelbrot, and Samuelson were the first to propose that financial market returns are difficult to forecast; nonetheless, Eugene Fama is most often identified with this theory because of his important overview of theoretical studies from 1970.
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27. a private behavioral services firm has posted a job opening for an rbt. the posting mentions integrity as a desired qualification a number of times. an rbt applying for the job could best demonstrate integrity in the application process by
A private behavioral services firm has posted a job opening for an RBT. An RBT applying for the job could best demonstrate integrity in the application process by Being honest about their educational background and work experience.
Integrity is best manifested by being truthful and advancing honesty in the remainder of something. A potential executive can yes (and endure) check citations, and accompanying chance those remarks have integrity and can present a truthful appraisal of the potential agent.
A Registered Behavior Technician (RBT) is everything in dispassionate backgrounds under the project of Board Certified Behavior Analysts (BCBA) to supply treatment plans for sufferers like autistic minors. As a practice machinist, you'll work under a BCBA to build ultimate stunning changes for an individual patient.
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The ________ in which the sequence of development phases is strictly determined and cannot be reversed is a criticism of the sdlc.
The REQUIREMENTS ANALYSIS PHASE in which the sequence of development phases is strictly determined and cannot be reversed is a criticism of the SDLC.
What are the phases of SDLC ?
The requirements collecting, design, development, test, deployment, and maintenance phases make up the software development life cycle. A committed group of specialists with knowledge in the field manages each stage of the software development process.
Planning, analysis, design, development, testing, implementation, and maintenance are the new seven phases of the SDLC.
Further user needs analysis and the creation of specific requirements will be based on documentation relating to user requirements from the Concept Development Phase and the Planning Phase. The phrase "application" refers to a grouping of data, software, and hardware elements working together to complete a task. Applications, information systems, and business processes have the same traits and elements.
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odd foley is applying for a $230,000 mortgage. he can select either a $1,610 monthly payment with no points or a $1,449 payment with 4 points. how many months will it take todd to cover the cost of the discount points if he takes the lower monthly payment?
If Todd chooses the smaller monthly payment, it will take him (58 months) to make up the cost of a discount points.
What is termed as the discount points?Your interest rate is reduced by points, commonly referred to as discount points, in exchange for an up-front payment. The lender accepts a higher interest rate in return for a reduction in your closing fees. Sometimes, these words are used to refer to different things. Mortgage lenders have been using the term "points" for a long time.For the stated question-
Amount of mortgage - $230,000.
Monthly payments - $1,610 monthly payment with no points.
Monthly payments - $1,449 payment with 4 points.
Thus, amount after apply 4 points is-
0.04 x $230,000 = $9,200
Time duration.
= $9,200/($1,610 - $1,449)
= $9,200/$161
= 57.14
= 58 months
Thus, if Todd chooses the smaller monthly payment, it will take him (58 months) to make up the cost of a discount points.
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a grandmother deposited $1,000 in an account that pays 8% per year compounded annually when her granddaughter was born. what will the value of the account be when the granddaughter reaches her 13th birthday?
The value of the account when the granddaughter reaches her 13th birthday will be $2720
Compound interest is interest that builds up over a set length of time on both principal and interest. The principal is also used to account for the interest that has accrued on a principal over time. Furthermore, the accumulated principal value is used to calculate interest for the subsequent period.
Principal amount invested = $1000
Rate of return = 8% per year
Time = 13 years
Using the formula we get the following:
A = P(1+r/100)^n
where A = amount
P = principal amount invested
r = rate of return
n = time in years
Substituting the values in the formula we get:
A = 1000(1+8/100)^13
= $2719.62 or $2720
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the times interest earned ratio reflects:
The ratio of interest earned to total revenue demonstrates a company's capacity to meet its debt obligations in the form of interest.
Explain about the Interest?
When you put your money in a high-yield savings account, a bank will provide you interest. The bank pays you to keep your money on deposit and utilise it to make investments in other deals. On the other hand, if you borrow money to cover a significant bill, the lender will also charge you interest
The cost a company pays a lender (creditor) for a loan is called interest. Although many different arrangements are possible, interest payments are typically based on the remaining balance of a loan and paid on a monthly basis. At a predetermined interest rate, interest is typically calculated as a percentage of the loan balance.
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which of the following statements about inventory management is/are true?
a. Safety stock is additional inventory that a firm carries to guard against unexpected changes in sales.
b. Outsourcing is the practice of arranging for a supplier to deliver raw materials at the time they are needed in the production process.
c. A firm should always order inventory in amounts sufficient to take advantage of quantity discounts.
d. The economic ordering quantity is the quantity at which the total cost of carrying (holding) inventory is minimized.
e. To most efficiently manage its inventory, a firm should not reorder raw materials until it has no products remaining in inventory.
Safety stock is additional inventory that a firm carries to guard against unexpected changes in sales. Option a statement is true about inventory management.
All of these stocks, also known as safety stocks or buffer stocks, have been kept on hand by the company as extra inventory to protect against unforeseen changes in sales or order delays.
Safety stock is an extra quantity of an item held in the inventory to lessen the risk that the item will be out of stock. It helps the company deal with unforeseen orders. It serves as a buffer stock in the event that sales are higher than anticipated or the supplier is unable to supply the extra units on time.
Safety stock can be used as a tactical tool with a new product until the corporation can assess how accurate its forecast is after the first few years.
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the president from which federal reserve bank always has a vote in the federal open market committee?
The only president from which the Federal Reserve Bank always has a vote in the Federal Open Market Committee is from New York.
What do you mean by the Federal Reserve Bank and why does New York vote ?
It was signed by The president Woodrow Wilson
The Federal Open Market Committee consist of twelve members
The seven members of the Board of Governors of the Federal Reserve Systemthe president of the Federal Reserve Bank of New York four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis.The primary reason why the New York Federal Reserve Bank always has a vote in the Federal Open Market Committee is because the federal reserve bank is involved in the bond and foreign exchange markets.
Hence, The only president from which the Federal Reserve Bank always has a vote in the Federal Open Market Committee is from New York.
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A firm's first few employees tend to have increasing marginal product. at some point, the principle of diminishing marginal product kicks in. as a result: _________
A firm's first few employees tend to have increasing marginal product. at some point, the principle of diminishing marginal product kicks in. as a result: the average total cost is U shaped
Business owners don't just do this for fun when they invest in their firm by adding additional employees, buying new machinery, or procuring more raw materials. In return for their investment, they seek a profit. They are specifically searching for increased output because, in theory, doing so should boost their company's net profitability. The idea of marginal product can be used to illustrate how rising investment and rising production are related.
The extra output produced as a result of more input going into a business is known as the marginal product. MPP, or marginal physical product, is another name for it.
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customer refunds payable is reported as a.a current asset. b.other income. c.a selling expense. d.a current liability.
Customer refunds payable is reported as a liability
Because it lowers the business expenses, a refund is a specific kind of expense transaction and shouldn't be recorded as income. The amount of consideration to which the business does not anticipate being entitled because it will be repaid to customers is represented by the refund obligation. At every reporting date, the refund liability is reassessed to account for changes in the estimate, and revenue is subsequently adjusted.
When a buyer returns an item to a seller, the vendor should deduct any reimbursements due to the customer. For the customer refunds payable, the liability account needs to be created at the same time as the associated sale. This account is used to predict future sales returns, which is another need for accounting rules for businesses.
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q8: junk food has been criticized for being too cheap, enticing the poor to adopt unhealthful lifestyles. suppose that the state of oklahansas imposes a tax on junk food. what has to be true for the tax to deter most people from eating junk food: should junk food demand be elastic, or should it be inelastic?
Junk food has been criticized for being too cheap, enticing the poor to adopt unhealthful lifestyles. Suppose that the state of oklahansas imposes a tax on junk food. For the tax to deter most people from eating junk food, the demand should be elastic.
What is elastic demand?
Elastic demand is demand in which the quantity demanded varies greatly with changes in price. Inelastic demand is demand for which the change in quantity demanded is small due to changes in price. The formula for calculating elasticity of demand is:
(Q1 – Q2) / (Q1 + Q2).
Demand elasticity is a measure of how demand responds to changes in price. This is normalized. That is, each price and quantity does not matter, everything is treated as a percentage change.
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