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2 years ago

Would you use Real GDP or Nominal GDP to accurately calculate growth in 2011? Explain in three to four sentences.

1 answer:

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You would want to use Real GDP because it looks at the inflation and deflation due to price "changes" over the years. Nominal GDP only looks at the current market of today's economy. So with this being said you only want to use Real GDP if your looking back at the economy's history, but you would look at Nominal GDP if you wanted to know the current economy status.

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Which of the following statements is CORRECT? a. The advantage of the basic earning power ratio (BEP) over the return on total a

leonid [27]

Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes

Explanation:

a. This is correct.

The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.

b. This is incorrect.

Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.

c. This is incorrect.

The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.

d. This is incorrect.

We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.

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2 years ago

The following journal entries were prepared by an employee of International Marketing Company who does not have an adequate know

Helen [10]

Answer:

April 1st

accounts receivable 15,800 debit

accounts payable 15,800 credit

_____________________________________

telephone expense 1,200 debit

cash 1,200 credit

_____________________________________

cash 9,500 debit

equipment 8,200 credit

supplies 900 credit

-- to eliminate a wrong post---

supplies 900 debit

equipment 8,200 debit

cash 9,500 credit

--to record the correct transaction--

___________________________________

Net effect on assets:

AR 15,800

Cash Decrease by 1,000

Explanation:

April 1st: we should use account receivable as we are going to receive cash in the future. We aren't going to pay it.

this will increase assets by 15,800 rather than decrease liabilities.

April 2nd: It should be backwards.

the effect will be a decrease in cash for 1,200 (600 to amend the mistake and 600 to show a disbursement

April 3rd we should decrease cash by 400 as the sum of the purchase is 9,100 not 9,500

As we can't you put a debit on cash we reverse the wrong entry adn do the proper one.

Real effect:

7 0

2 years ago

Read 2 more answers

After Hayworth Publishers realized that it was incurring losses, it set new objectives. These objectives were to increase revenu

ella [17]

Answer:

PLANNING

Explanation:

Planning is the management function and process of thinking about the activities required to achieve a desired goal.

It is the first and foremost activity to achieve desired organizational results.

It involves the creation and maintenance of a plan, such that if the plan is followed, organizations can achieve their goals

Planning is also a management process, concerned with goal definition for a company's future direction and determines the resources to achieve such goals. To achieve goals, managers may develop plans, such as a business plan, sales plan or a marketing plan

6 0

2 years ago

Suppose you have a two-stock portfolio consisting of Apple and Tesla stock. The portfolio weight of Apple is 25% and the rest is

iren [92.7K]

Answer:

Standard deviation = 47.69% (Approx)

Explanation:

Given:

Portfolio of Apple stock w1 = 25% = 0.25

Portfolio of Tesla stock w2 = 75% = 0.75

Standard deviation return Apple σ1 = 35% = 0.35

Standard deviation return Tesla σ2 = 60% = 0.60

Correlation coefficient ρ12 = 0.22

Find:

Standard deviation

Computation:

Standard deviation = √w1²σ1² + w2²σ2² + 2w1σ1w2σ2ρ12

Standard deviation = 0.4769

Standard deviation = 47.69% (Approx)

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2 years ago

Butterfly Corp. manufactures products M1 and M2 from a joint process, which also yields a by-product, B1. Butterfly accounts for

Katen [24]

Answer:

M1 allocated joint cost is $196,521.63

Explanation:

In calculating the joint cost allocated to product M1, the formula below comes handy:

M1 allocated joint cost=M1 net realizable value/total realizable value*total joint costs

Note that net realizable value id the selling price less further to make the sales,since there is no further costs to be incurred in making the sale, the selling price ultimately is the net realizable value.

M1 net realizable value is $402,000

total realizable value is $763,000

total joint cost is $373,000

M1 allocated joint cost=$402,000/$763,000*$373,000

M1 allocated joint cost= $196,521.63

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2 years ago