IN equilibria Only then can we categorize both portfolios as being in equilibrium. The return or expected return from the market (Rm) should be equal. By using the CAPM model to solve for Portfolio X and Y separately, this can be demonstrated.
Rx = 14% Return on Portfolio X
Return on Portfolio Y = Ry = 9.5%
Risk-free interest rate: 8%
What is Rm = Expected Return on Market?Portfolio Y beta = 0.25 Portfolio X beta = 1
Applying the CAPM model, we can identify "Rm":
To portfolio X
Rx = Rf plus the beta of X (Rm - Rf)
14% = 8% + 1 * (Rm - 8%)
Rm = 14%
Y Ry = Rf + Beta of Y * (Rm - Rf) 9.5% = 8% + 0.25* Now for the portfolio (Rm - Rf)
Rm = 6% + 8% = 14% and Rm - Rf = 1.5%/0.25
Due to the identical market return (Rm) of 14% for both portfolios, they are in equilibrium.
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in the period 2011, lott inc. performed services for $120,000 and billed its customers. the company subsequently collected $82,000 of the amount billed. lott incurred $75,000 of operating expenses but paid cash for only $62,000 of that amount. lott acquired $30,000 cash from the issue of common stock. the company invested $18,000 cash in the purchase of land. what is the amount of net income for the period?
The $120,000 in revenue-related cash flow will be shown on the statement of cash flows.
What is cash flows?
Because the full value of accounts receivable must be taken into account regardless of whether they are collected or not, the amount of cash flow from revenue that will appear on the statement of cash flows will be $120,000. The cash flow from operating activities will be adjusted to reflect the amount of the account receivable that is collected.
The amount of money a business brought in or spent overall over a period of time is measured by its cash flow. On the statement of cash flows, a common financial statement, the cash flow is commonly divided into cash flow from operating operations, cash flow from investing activities, and cash flow from financing activities.
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point a and point b are on the ppf/ppc. movement from point a to point b group of answer choices shows decreasing opportunity costs is inefficient is efficient shows increasing marginal productivity
Scarcity, choice, and tradeoffs are all represented in the PPF. The PPF's shape is determined by whether the costs are increasing, decreasing, or constant.
What is PPF curve?The production possibility frontier (PPF) is a graph curve that depicts the possible quantities of two products if they both rely on the same finite resource for production. The production possibility curve is another name for the PPF. The production possibilities curve (PPC) is a graph that depicts all of the possible output combinations given current resources and technology. The PPC, also apprehended as the production possibilities frontier (PPF), depicts scarcity and tradeoffs. There are three types of production possibility curves in total. Straight lines sloping downward, concave and convex. If the slopes of the two PPCs are equal, A's marginal cost of producing x equals B's marginal cost, and production is efficient.To learn more about Production possibilities frontier, refer to:
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martys anual salary is 56,000 as a computer aided designer if the state tax rate is 4% what does he pay yearly in a state taxes
Marty's annual salary is $56,000 as a computer aided designer. If the state tax rate is 4%, Marty pays $2,240 in state taxes yearly.
What is salary?
An employment contract may include a salary clause as a type of recurring payment from an employer to an employee. In contrast, piece wages are paid separately for each job, hour, or other unit rather than on a regular schedule. Salary can also be seen from the perspective of operating a corporation as the expense of obtaining and keeping employees to carry out operations; this is known as a personnel expense or salary expense. Payroll accounts are used in accounting to record salaries. A salary is a set sum of money or other remuneration that a company gives to an employee in exchange for work completed. Salary is frequently paid at predetermined periods, such as monthly instalments equal to one-twelfth of the annual salary.
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businesses that stand to gain wealth from tourism have become increasingly as businesses serving different parts of the commodity chain have merged into one larger company or set of companies that work with each other to corner a market.
Businesses that stand to profit from tourism have become more vertically integrated as enterprises that serve various points along the supply chain have amalgamated to form a single larger corporation or group of companies that collaborate to corner a market.
Vertical Integration: What Is It?
Vertical integration is a tactic that enables a business to streamline operations by directly controlling different stages of the production process instead of depending on outside suppliers or contractors.
Target is an illustration of a vertically integrated business because it has its own store brands and manufacturing facilities. It produces, distributes, and sells its own goods, doing away with the need for third parties like manufacturers, shipping services, or other logistical requirements.
How does business vertical integration benefit them?Adding distribution centers in new locations or purchasing a new brand are two ways that vertical integration might help your company grow regionally. Generally speaking, geographic expansion is most effective when it occurs inside a company's own supply-distribution spectrum segment.
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The correct question is:
Businesses that stand to gain wealth from tourism have become increasingly ________ as businesses serving different parts of the commodity chain have merged into one larger company or set of companies that work with each other to corner a market.
Based on the profit-loss statement, name two ways Janet and Omar can improve their cash flow
Offering incentives for early payments, leasing rather than purchasing, increasing inventory, checking consumer credit, and employing high-interest savings accounts are all ways for a firm to enhance cash flow.
Why do we need to improve cash flow?You can accurately forecast your account payables if you manage your cash flow well. Consequently, you'll be able to buy the ingredients you require when you require them. You can even consider increasing your product range once you realize that you are constantly sustaining a good cash flow.
Positive cash flow is a sign that a company's liquid assets are growing, allowing it to meet commitments, reinvest in its operations, distribute profits to shareholders, cover costs, and act as a safety net against upcoming financial difficulties.
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During a clearance sale at a sporting goods store, skateboards were marked down 30%. On saturday, an additional 25% was taken off the already reduced prices of the skateboards. If a skateboard originally cost $119. 50, what was the final price after all discounts? round to the nearest cent.
The final price after discount was 62.74
Based on the given conditions, formulate: 119.5* [1-25%]*[1-30%]
Calculate the sum or difference: 119.5* 0.75*[1-0.3]
Calculate the sum or difference: 119.5* 0.75*0.7
Calculate the product or quotient: 89.625*0.7
Calculate the product or quotient: 62.7375
Round the number: 62.74
The final price after discount is 62.74
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the total cost (in hundreds of dollars) to produce x units of perfume is . (a) find the average cost function. (b) find the marginal average cost function. (c) find the average cost and the marginal average cost for a production level of units. interpret your results.
The average cost is the cost of producing a specific quantity per unit. It is critical to understand that the average cost is not always the same as the cost of producing a single item. The average cost is determined by both fixed and variable expenses.
The average cost function is defined as so that x > 0. This demonstrates that dividing the total cost function by the number of units produced yields the average cost.
The term marginal relates to a rate of change, or derivative. Thus, if C(x) is the total cost of manufacturing x things, then indicates the instantaneous rate of change of total cost about the number of items.
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The Total Cost (In Hundreds Of Dollars) To Produce ( X ) Units Of Perfume Is ( C(X)=[tex]\frac{6 X-5}{5 X+3}[/tex]. (a) find the average cost function. (b) find the marginal average cost function. (c) find the average cost and the marginal average cost for a production level of 20 units. interpret your results.
in 2021, landon has self-employment earnings of $195,000. compute landon’s self-employment tax liability and the allowable income tax deduction of the self-employment tax paid.
It is to be noted that Landon's Self-Employment Tax Liability is $22,297.19 While his Self Employment Tax Deduction is $11,148.60. See the explanation below.
What is Self-Employment Tax Liability?The self-employment tax is a combination of Social Security and Medicare taxes levied mostly on self-employed persons. It is analogous to the Social Security and Medicare taxes taken from most wage employees' paychecks. Most wage earners' Social Security and Medicare taxes are calculated by their employers.
The first $142,800 in net earnings is subject to the entire self-employment tax in 2021. If you make more than this amount, the remainder is subject to simply the 2.9% Medicare tax. On your tax return, the IRS permits you to deduct 50% of your total self-employment tax.
The calculation confirming the above answer is:
Recall that Social Security is computed at 12.4% tax on wages up to the taxable-earnings limit. Thus $137,700 x 12.4% = $17,074.80
This is because the social security taxable income limit is $137,700.
Next, we compute the FICA Rate for Social Security plus Medicare withholding.
This is given at:
6.2% + 1.45% = 7.65%
100% - 7.65% = 92.35%;
1.45% + 1.45% = 2.9%
Thus,
$195,000 x 92.35% x 2.9% = $5,222.39
Hence the total Self Employment Tax Liability
= $5,222.39 + $17,074.80
= $22,297.19
While
Self-employment tax deduction
= $22,297.19 * 50%
= $11,148.60
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he clause protects individuals and businesses from an overly intrusive government by requiring the government to give one notice and some type of procedure whenever the government interferes with our life, liberty, or property.
The Due Process Clause covers people and industries from an extremely pushy state by requiring the government to give one notice and some type of system whenever the state interferes with our life, liberty, or possessions.
What Is Due Process?Due process requires that legal issues be resolved in accordance with established rules and principles, and that individuals be treated fairly. Both civil and criminal proceedings are subject to due process. Due process of law is the application by the state of all legal rules and principles pertaining to the case in order to respect all legal rights owed to the person. Due process balances the power of the law of the land while protecting the individual from it. Due process ensures fairness in the criminal justice system. Individuals may be detained and deprived of their freedom and life without just cause if due process is not followed. If a criminal defendant is denied their civil rights, they have the right to sue the state on those grounds.To learn more about Due Process, refer to;
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a fixed alternative question requires respondents to select one or more response option from the set of predetermined choices. another name for this kind of question is a(n)
The another name for this kind of question is a(n) (fixed- alternative)
A fixed alternative question required respondents to select one or more response option from a set of predetermined choice.
( Developing the research plan)
There are the 5 steps of the marketing research approach:
● Define the problem
●Develop your marketing research plan
●Collect Relevant data and information
●Analysis data and report finding
●Put your research into action.
fixed alternative on a test or survey when multiple different answers are provided, and participants are asked to select the one that best fits their preference or the correct response.
Complete Question
A(n) question requires respondents to select one or more response options from a set of predetermined choices.
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As a huge math fan, you think it would be fun to have a prime number of partners in your business (including yourself) and at least 3 partners. If every partner gets one vote on major decisions, can a vote ever end in a tie (2-way, 3-way, 4-way, etc.)?
It would be fun to have a prime number of partners in your business and at least 3 partners. So, if every partner gets one vote on major decisions, a vote can end in a tie.
Prime numbers are considered to be the numbers which are greater than 1. They only have two factors, 1 and the number itself. So which means that these numbers cannot be divided by any number other than 1.
Suppose, you have a prime number of partners in your business with at least 3 partners, and if every partner gets one vote on major decisions, a vote can end in a tie. Prime numbers are used for a number of reasons.
Hence, prime numbers are natural numbers which are divisible by only 1 including the number itself.
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the process through which consumers reconstruct memory traces into a formed representation of what they are trying to remember or process is known as .
The process through which consumers reconstruct memory traces into a formed representation of what they are trying to remember or process is known as response generation.
In the field of business, response generation can be described as a procedure through which the users of a product reconstruct their memories to influence the search for a particular response.
Response generation allows the reconstruction of memories and forms a representation of them.
After inputs are made, a response is generated by looking at the inputs inorder to benefit the organization as well as the consumers of a product.
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Suppose your investment returns are taxed at a 25% rate. If you invest $10,000 today and expect to earn a rate of return of 8%, what will your investment be worth in 15 years?.
Answer:
6.91%
Explanation:
In this question we use the RATE formula that is shown on the attachment below:
Given that,
Present value = $1,050
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 8% ÷ 2
NPER = 15 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the rate of return is 6.91%
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what is the book value per share for a firm with 2 million shares outstanding at a price of $50, a market-to-book ratio of 0.75, and a dividend-payout ratio of 50%?
The book value per share for a firm with 2 million shares outstanding will be $66.67.
Market to book value ratio = 0.75
Market value of stock/ Book value per share = 0.75
$50/book value per share = 0.75
Book value per share = $50 / 0.75 = $66.67
Shares are part ownership interests in a corporation. For some businesses, shares are a type of financial instrument that enables for the efficient allocation of any declared residual earnings in the form of dividends. A stock with no dividend payouts does not disperse its income to its shareholders. Instead, they look forward to further stock price growth as business profits rise.
Shares are a company's equity capital, and there are two primary kinds of shares: common shares and preference shares.
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Cheryl was listening to instructions given by her boss to learn how to complete a project. Which listening skill is she primarily using in this scenario?.
Active listening skills she primarily used in this scenario.
The way to enhance your listening skills is to exercise "active listening." that is wherein you are making a conscious effort to listen no longer best to the words that every other individual is pronouncing but, greater importantly, to the complete message being communicated.
A way to try this, you must take note of the opposite individual very cautiously.
The responding degree is the level of the listening process in which the listener offers verbal and/or nonverbal reactions based totally on brief- or lengthy-time period memory.
Following the remembering degree, a listener can reply to what they pay attention to either verbally or non-verbally.
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to ensure the quality of its almond butters, rally's roasters owns the almond groves in which all of its almonds are grown. rally's almond butters are sold in supermarkets as well as specialty food stores throughout the country. rally's makes use of what type of integration?
By selling almonds in supermarkets as well as specialty food stores Rally is making use of Backward integration. here backward integration tactics are implemented.
More about Backward integration:
Backward integration is a sort of vertical integration where a corporation takes on new responsibilities all of which were traditionally held by suppliers higher up the supply chain. To achieve control over the preceding phases of the value chain which include the tasks carried out by specialized manufacturers and suppliers, backward integration tactics are implemented.
The following are typical illustrations of business activities classified as downstream functions. Production of Products (i.e. Parts, Components) Studying and Developing (R&D) Rough Material Provider
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the clinique division of estée lauder, inc., markets cosmetics and built its business in traditional department stores. clinique now reports 80 percent of current customers who visit its website later purchase a clinique product at a department store. clinique has become a marketer. multiple choice
division of estée lauder, inc., markets cosmetics and built its business in traditional department stores. clinique now reports 80 percent of current customers who visit its website later purchase a clinique product at a department store. clinique has become a marketer. multiple choice
subsidiary of estée lauder, inc. sells cosmetics and started off by establishing itself in conventional department shops. 80 percent of current clients who visit clinique's website now go on to buy a clinique product at a department store. The clinic has mastered marketing. multiple selection
What do you know about department stores?From front to back, the home measures 150 feet, and its width is proportional. It is tastefully decorated and split into four sections by glazed barriers for the various branches of the vast business that is conducted there.
The first section is located right outside the front door and is dedicated solely to the selling of fans and furs.
The second one has haberdashery items of every kind, including gloves, silks, muslins, lace, and other items. You can find a wide selection of jewelry, ormolu ornamental items, French clocks, etc.
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quizlet a furniture seller believes that people who have just moved are more likely to need new furniture. what targeting dimension should this furniture seller use for their ad campaign?
Answer:
Life Events
Explanation:
The company realizes that people who have just moved are more likely to buy furniture.
Moving is a major life event so the company would advertise based on that criteria.
The right answer is D. Life events as life events marketing promotes life milestones. Please rate this answer positively if you believe it was helpful
What is marketing?Marketing is the process of investigating, developing, and providing value in terms of products and services to fulfill the needs of a target market. Potentially includes the selection of a target audience; the selection of certain traits or themes to emphasize in advertising;
Marketing is the activity of investigating, generating, and supplying value in the form of goods and services to fulfill the demands of a target market, potentially including the identification of a target audience; the selection of specific traits or themes to stress in advertising
Therefore, The right answer is D
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6. calculating portfolio betas you own a stock portfolio invested 15 percent in stock q, 25 percent in stock r, 40 percent in stock s, and 20 percent in stock t. the betas for these four stocks are .75, .87, 1.26, and 1.76, respectively. what is the portfolio beta?
Thus the beta portfolio comes out to be 1.231.
The data from the question is summarized below
Q R S T
Beta : 0.85 0.91 1.31 1.76
Portfolio: 15% 25% 40% 20%
Portfolio beta is calculated by finding the weighted average of the betas of al the stocks weighted by their relative percentages in the portfolio. The equation is as below
[tex]\beta_{portfolio}=\sum w_{i} \beta_{i}[/tex]
The weight of the stock in portfolio (percentage of portfolio the stock forms)
[tex]\beta_{i}[/tex] is the beta of the stock
substituting the values for our stock in the equation
[tex]\beta_{portfolio}=\beta_{Q}w_{Q}+\beta_{R}w_{R}+\beta_{S}w_{S}+\beta_{T}w_{T}[/tex]
[tex]\beta_{portfolio}=0.85 \times 15\%+0.91 \times 25\%+1.31 \times 40\%+1.76 \times 20\%[/tex]
[tex]\beta_{portfolio}[/tex]=1.231
Thus the beta portfolio comes out to be 1.231
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in the first month of operations, the total of the debit entries to the cash account amounted to $1,200 and the total of the credit entries to the cash account amounted to $800. the cash account has a(n) .
Here the cash account balance is $1,100, with a credit to the liability account for $3,000 and $500, and a debit to Supplies and a credit to Accounts Payable.
The total Accounts Payable are as follows-
1) Balance in cash is 1900-800 = $1100.
2) Journal entry :
Date Account and explanation Debit Credit
Equipment 3500
Cash 500
Notes payable 3000
c) Here credited a liability account for $3,000.
3) Journal entry:
Date Account and explanation debit credit
Supplies 1200
Cash 500
Account payable 700
a) Credit another liability account for $500.
4) Journal entry :
Date Account and explanation debit credit
Supplies 500
Account payable 500
a) a credit to accounts payable and a debit to supplies.
Accounts Payable (AP) is a short-term debt and liability on the balance sheet that represents money that a business owes to its suppliers and vendors who have given it goods or services on credit.
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during july, jobs no. 103 and 104 were completed, and jobs no. 101, 102, and 104 were delivered to customers. jobs no. 105 and 106 are still in process at july 31. a. compute the work in process inventory at june 30. b. compute the finished goods inventory at june 30. c. compute the cost of goods sold during july. d. compute the work in process inventory at july 31. e. compute the finished goods inventory at july 31.
(a) $3,160
(b) $7,000
(c) $13,500
(d) $9,500
(e) $2,960
(a). Work in Process = Manufacturing cost of 103 in June + Manufacturing cost of 104 in June
Work in Process = $960 + $2,200 = $3,160
(B). Finished goods = Manufacturing cost of 101 in June + Manufacturing cost of 102 in June
Finished goods = $3,800 + $3,200 = $7,000
(C) Cost of goods sold during July = Manufacturing cost of 101 in June + Manufacturing cost of 102 in June + Manufacturing cost of 104 in June + Manufacturing cost of 104 in July
Cost of goods sold during July = $3,800 + $3,200 + $2,200 + $4,300 = $13,500
(D) Work in process inventory = Manufacturing cost of 105 in July + Manufacturing cost of 106 in July
= $6,200 + $3,300 = $9,500
(E) Finished goods inventory = Manufacturing cost of 103 in June + Manufacturing cost of 103 in July
Finished goods inventory = $960 + $2,000 = $2,960
What is Inventory?Inventory refers to all the items, goods, merchandise, and materials held by a business for selling in the market to earn a profit. Example: If a newspaper vendor uses a vehicle to deliver newspapers to the customers, only the newspaper will be considered inventory.
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If the minimum wage for teenagers increased to a rate higher than their market equilibrium wage, what would be the effect on their wage and employment?.
The effect on wage is increase. In the other side, if the minimum wage for teenagers increased to a rate higher than their market equilibrium wage than the effect of employment is decrease.
A minimum wage can be described as the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor. Minimum wage had introduced in the end of the 20th century by most countries. Minimum wage cannot be reduced by an individual contract or collective agreement. Now days, the minimum wage in US for employee is $7.25 per hour.
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Martinez co. Borrowed $50,000 on march 1 of the current year by signing a 60-day, 9%, interest-bearing note. Assuming a 360-day year, when the note is paid on april 30, the entry to record the payment should include a?.
The record of the payment should include an entry of $750
A method for calculating how much interest was paid on a sum of money during a certain time period at a specific rate is called simple interest.
Simple interest is a straightforward and easy way to calculate financial interest since it has a single principal amount.
Interest = Principle x Rate x Time
Interest = $50,000 x 0.09 x 60 / 360 ( As per values given)
= $750
Thus, it will be debited to Interest Expense for $750
Therefore, in order to know the charge of the debt that has occurred throughout the 60 days, one must debit the Interest Expenditure, which is the typical side of an expense account.
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b) for each week: ice cream cone sales, air-conditioner sales which variable would best be used as the explanatory variable and which as the response variable? a. air-conditioner sales would best be used as the explanatory variable, and ice cream cone sales the response variable, to predict ice cream cone sales based on air-conditioner sales. b. ice cream cone sales would best be used as the explanatory variable, and air-conditioner sales the response variable, to predict air-conditioner sales based on ice cream cone sales. c. either ice cream cone sales or air-conditioner sales can be the explanatory value. then the other will be the response variable, because ice cream cone sales can be predicted by air-conditioner sales, and air-conditioner sales can also be predicted by ice cream cone sales. d. the terms explanatory and response variable do not apply to this situation.
Either ice cream cone sales or air-conditioner sales can be the explanatory variable.
Then the all other will be the response variable, as ice cream cone sales can be predicted by air-conditioner sales, and the air-conditioner sales could be predicted from ice cream cone sales.
Option C is correct .
Explanatory variable :An Explanatory Variable may be a factor that has been manipulated in an experiment by a researcher. it's used to determine the change caused in the response variable. An Explanatory Variable is usually referred to as an Independent Variable or a Predictor Variable
An explanatory variable is that the expected cause, and it explains the results. A response variable is that the expected effect, and it responds to other variables
Independent variables :Independent variables also are called: Explanatory variables (they show an event or outcome) Predictor variables (they could be used to predict the value of a dependent variable)
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brainly fisheries officials are stocking a barren lake with pike, whose number will increase annually at 40%. fishing is prohibited the first 2 years and then 5000 pike can be removed in each of the 3rd and 4th years, so that the number remaining after the 4th year is the same as the original number stocked in the lake.
The original number of pikes stocked in the lake before the annual increase of 40% and removal of 5,000 pikes for two years is 4,999.99
How to find original number stocked in the lake?A detailed step by step explanation for calculating or finding how to get the original number of fishes stocked in the lake is given below:
To begin with, let:
The original number stocked in the lake = xThe annual increase = 40% = 0.4The number of years = 4Total increase = x + 0.4⁴
= x + 0.0256
The fishing removed each at 3rd and 4th year = 5000
The total removed = 2(5000)
= 10,000
So,
the original number stocked in the lake = the total removed - Total increase
x = 10000 - (x + 0.4⁴)
x = 10000 - x - 0.0256
collect like termsx + x = 10000 - 0.0256
2x = 9,999.9744
divide both sides by 2x = 9,999.9744 / 2
x = 4,999.9872
Approximately,
x = 4,999.99 pikes.
In conclusion, the original number of pikes stocked in the lake before increase and removal is 4,999.99 pikes
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all spare parts belong to a product. a product must exist before spare parts become available, and when a product is removed, spare parts are also removed. what type of entity is product?
All spare parts are associated with a specific product. Spare parts must exist before they can be obtained, and when a product is removed, spare parts are also removed. The Master Entity is a type of entity product.
What is the product entity?A product and a customer are separate entities, whereas a sale is the result of a relationship between a customer and a product. The Entity Relationship (ER) model is a popular approach to conceptual design that helps transform conditions into a standard description of the entities and associations that materialize in the database. A single person, a single product, or a single organization are all examples of entities. The type of entity. A person, organization, type of object, or concept about which data is kept. The Entity Data Model's entity type is the fundamental building block for describing data structure (EDM). An entity type in a conceptual model represents the structure of top-level concepts such as customers or orders.To learn more about Entity product, refer to:
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monopolistically competitive firms are unable to produce enough output to reach the average total cost because of the presence of other monopolistically competitive firms in the industry.
Monopolistically competitive firms are unable to produce enough output to reach the average total cost because of the presence of other monopolistically competitive firms in the industry.
Monopolistic competition arises when several businesses provide rival goods or services that are comparable but imperfect replacements.Entry barriers are low in monopolistic competitive industries, and actions made by one business do not immediately impact those of its rivals. Pricing and marketing choices are how the rival firms set themselves apart.Businesses engaged in monopolistic rivalry distinguish their goods through price and marketing tactics.The expenses or other impediments that prohibit new rivals from joining a market are minimal in monopolistic competition.Between perfect and monopolistic competition, known as monopolistic competition, there is monopolistic competition, which incorporates aspects of both and entails businesses with comparable but distinct product offers.Learn more about Monopolistic competition, here
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A goal that you want to achieve by next year is which type of goal?
A.
Short-term
B.
Intermediate
C.
Long-term
D.
Lifestyle
june is working as part of the strategic planning team in her organization. currently, the team is developing a clear statement explaining the organization's reason for existence. june's team is writing a
If June is working as part of the strategic planning team in her organization and currently, and the team is developing a clear statement explaining the organization's reason for existence, then June's team is writing a mission statement.
What is a mission statement?A mission statement can be defined as a specific technical piece indicating the purposes as well as objectives that hold a particular organization in association with the services and products that the company may provide to its customers in the market.
A mission statement is a fundamental piece to state the major objectives of the company in the calendar year and the focus of all the required energies to fulfill such purposes, which may include how to inspire employers to reach these objectives during his/her work.
Therefore, with this information, we can conclude that a mission statement is fundamental issue to clarify the objectives of a company.
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assume that on february 1, procter & gamble (p&g) paid $720,000 in advance for 2 years’ insurance coverage. prepare p&g’s february 1 journal entry and the annual adjusting entry on june 30.
The journal entries for the given problem is done below :
Journal Entries:Journal entries are recorded throughout the accounting period . Very First, journal entries are prepared to record business transactions then adjusting entries are done at the top of an accounting cycle as needed. Also, any errors found throughout the review of the trial balance is corrected through a journal entry.
Journal Entries :Date Accounts and Explanation Debit $ Credit $
Feb 1 Prepaid Insurance $720,000
Cash $720,000
June 30 Insurance expenses $150,000
Prepaid insurance
($720,000 x 5/24) $150,000
Meaning of Prepaid Insurance :
Payment of premium by insured to insurer person entity before the due date is known as prepaid insurance. It is current assets for the insured person and therefore shown in the balance sheet under the sub-head of the current assets.
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