An adjustment is likely to be required on Wisdom's books at the end of every month that the loan is outstanding to record the accrued interest expense for the month. So, the correct option is D.
What does Wisdom Co. need to record?Wisdom Co. has a note payable to its bank. An adjustment is likely to be required on Wisdom's books at the end of every month that the loan is outstanding to record the accrued interest expense for the month.
In a business, when a company takes a loan from a bank or financial institution, they incur an expense of interest on that loan on a monthly or quarterly basis, depending on the loan agreement. The interest expense needs to be recognized in the books of account at the end of each accounting period or monthly basis.
In the case of Wisdom Co., it has taken a loan from its bank. The company will have to recognize the interest expense that has accrued on the loan on a monthly basis.
The accrued interest expense for the month is recognized in the adjusting entries at the end of each month. This adjustment is required to ensure that the financial statements of Wisdom Co. show the accurate financial position of the company.
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Sample advertisement: Lose body fat and feel healthier with our proven supplement, Edgozene! Losing weight is easy with Edgozene! Just take two pills before each meal. You'll feel more full and eat less. No other diet pill offers what our product does - and for a limited time, if you buy now you can get two bottles of Edgozene for just $29.95! Which of these statements from the advertisement are facts? Check all that apply. A) Losing weight is easy with Edgozene. B) You will lose weight and feel healthier if you take Edgozene. C) You will receive two bottles of Edgozene when you order. D) Edgozene costs $29.95. E) You won’t eat as much if you take Edgozene.
Answer:
C) You will receive two bottles of Edgozene when you order.
D) Edgozene costs $29.95.
Explanation:
We assume that 1 order costs $29.95 and delivers 2 bottles. (That is, we assume that you cannot order 1 bottle for $14.98.) Under that assumption, the cost is $29.95 (D) and the amount delivered is 2 bottles. (C)
There is no way to determine whether any other claims are facts, or not. As a rule, feelings experienced when eating are a function of a lot more than just a diet pill. That is, you may or may not eat less when/if you feel more full.
Answer:
c,d
Explanation:
Juice wrld is the best <3
Rip juice wrld:(( 999
Answer:
Juice Wrld was an excellent artist. He spoke to many with his songs and reached those who could connect to him and his struggles through his music, personally his music is catchy and sounds good. He has a unique voice and his lyrics are relatable. he will always be in our hearts we will always remember him and his songs
active/passive she is watering the plants
Answer:
active
Explanation:
she "is" means she is currently watering the plants. if it was passive it would have been like this, "she watered the plants".
during the current year, swallow corporation, a calendar year c corporation, has the following transactions: income from operations $660,000 expenses from operations 760,000 dividends received from brown corporation 240,000 click here to view the dividend received deduction table. question content area a. swallow corporation owns 12% of brown corporation's stock. how much is swallow's taxable income or nol for the year? swallow's taxable income after deducting the dividends received deduction is $fill in the blank 1d2c51f8b00704e 2 70,000 . feedback area feedback the purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. without the deduction, income paid to a corporation in the form of a dividend would be taxed to the recipient corporation with no corresponding deduction to the distributing corporation. later, when the recipient corporation paid the income to its shareholders, the income would again be subject to taxation with no corresponding deduction to the corporation. question content area b. assume instead that swallow corporation owns 26% of brown corporation's stock. how much is swallow's taxable income or nol for the year? swallow's nol after deducting the dividends received deduction is
a) Swallow's Taxable Income = $42,000, when it owns 12% of Brown Corporation's stock
b) Swallow's Taxable Income = $28,000, when it owns 26% of Brown Corporation's stock
What is considered taxable income?Any gross income that is used to determine how much tax you owe is referred to as taxable income. It is simply your adjusted gross income less any deductions, to put it simply. Additionally included are investments and unearned income. In general, it comprises all or a portion of the items of income and is lessened by costs and other deductions.
Given:
Income from operations $660,000
Expenses from operations $760,000
Dividends received from Brown Corporation $240,000
a.
Taxable Income is calculated
Dividend received + Income from operations - Expenses from Operations
Taxable Income = $240,000 + $660,000 - $760,000
Taxable Income = $140,000
Swallow Corp owns 12% of Browns Corporation stock;
And 12% is not up to 20% owned by Browns Corporation.
So. The Dividend Received is 70% of $140,000
Dividend = $98,000
Taxable Income = $140,000 - $98,000
Taxable Income = $42,000
b.
Dividend Received + Taxable Income (ii) = Taxable Income (i)
Where Taxable Income (I) = $140,000
Calculating Dividend
Dividend = 80% of $140,000
Dividend = $112,000
Taxable Income = $140,000 - $112,000
Taxable Income = $28,000
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The correct question is:
During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions.
Income from operations $660,000
Expenses from operations 760,000
Dividends received from Brown Corporation 240,000
a) Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?
b) Assume instead that Swallow Corporation owns 26% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?
which of these is an example of restrictions that government places on the use of business property?
In the US, the Fifth Amendment of the Constitution grants the government the right to use its eminent domain authority to take property for a public purpose as long as the owner is fairly compensated.
The definition of domain
The internet-specific term "domain" can refer to both the internet's structure and the organization of a company's network resources. A domain is typically a field of study or a management discipline.
A domain name is, to put it simply, the name of a website. It is the text that appears after .When someone asks how to find you online, you normally respond with your domain name.
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Okay is it just me or is anyone else getting so many exams and redos right now
Answer:
ufff
Explanation:
exam s are over Best Of Luck ! ❤️❤️
Answer:
i am
Explanation: hey it me mat, i know its been a while and you problably forgot about me by now but. im sorry and id like to talk.
Smolira Golf Corp. has 20,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $58. What is Tobin’s Q for Smolira Golf? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Note: Missing question is attached below
Market value of equity = Shares * Share price = 20,000 * $58 = $1,160,000
Total debt = Current liabilities + Long term debt = $83,416 + $145,000 = $228,416
Book value of assets = $627,868
Tobin's Q = MV of equity + Bv of debt / Bv of assets
Tobin's Q = $1,160,000 + $228,416 / $627,868
Tobin's Q = 2.21
The process by which a firm attempts to have the consumer associate two ideas such as a drug and headache relief is called ______.
Cognitive Learning is process by which a firm attempts to have the consumer associate two ideas such as a drug and headache relief.
What is Cognitive Learning?Cognitive learning is a form of of learning which main focus is how to use the brain more accurately and effectively.
To understand cognitive learning, the meaning of cognition is Paramount.
Cognition is a form of mental procedure to acquire knowledge and understand what is taught, experiences or what we think about.
An example of Cognitive Learning is when teachers help their students to find new solutions to problems of what they are been cognitive
Therefore, Cognitive Learning is process by which a firm attempts to have the consumer associate two ideas such as a drug and headache relief.
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Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
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Find the simple interest paid.
9. Principal: $350
Annual rate: 4%
Time: 3 years
Interest
Answer:
$392
Explanation:
Using the simple interest formula....
A=P(1+rt)
A=350(1+(0.04)(3))
A=350(1+(0.12)
A=350(1.12)
A=350x1.12
A=392
1. Which of the following lists include only traits of diversity?
A. Race, gender, religion, age
B. Gender, religion, physical handicap, hair color
C. Religion, physical handicap, food preferences, attire
D. Age, race, attire, physical handicap
Answer:
A. Race, gender, religion, age
On a particular day, the Dow Jones had a rate of change of -2.1%. Which of the following statements must also be true?
Answer: The average of the 30 stocks in the Dow Jones decreased
Explanation:
A p e x, just did the quiz
Answer:
The person above me is correct ;3
Explanation: TOOK THE QUIZ MY FRIENDS
Upgrading the air conditioning in a particular building on campus would result in cost of maintenance savings of $190 per year for the first three years and $400 per year for the next six years. If maintenance costs are the only consideration, the maximum amount to spend now on the project at 5% interest is _____________. A. 1985.36 B. 2271.25 C. 2698.65 D. 2741.52
The correct option according to the given information will be C. 2698.65. This can be computed by:
Using,
190 (P/A, 5%, 3) + 400 (P/A, 5%, 6) × (P/F, 5%, 3)
Any expense made by a person or organisation to keep their assets in excellent operating order is referred to as a maintenance expense. These expenses could be used for routine item maintenance. Maintenance expenses are the one-time or ongoing expenses a business has to pay to maintain its buildings, assets, vehicles, and equipment.
Some businesses pay these expenses for routine upkeep or preventative measures that preserve their assets in good condition. The cost of maintenance may be constant or variable. If maintenance has a cost per unit and is required for each product, it would be a variable cost.
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(Cost - residual value) x (1/useful life) is the formula for calculating the
-
method of depreciation. (Enter only one word per blank.)
The formula "(Cost - residual value) x (1/useful life)" is the formula for calculating the straight-line method of depreciation.
Depreciation is the systematic reduction in the value of a tangible asset over its useful life. This term is usually used for tangible assets, while a similar concept of amortization is used for intangible assets.
The book value of the asset decreases in depreciation. This depreciation is a non-cash expense, which is a tax-deductible expense.
Assets, such as buildings, equipment, machinery, vehicles, etc., are usually depreciated because they reduce in value over time, with wear and tear and use.
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Explain five reasons of existence of monopolies
The reasons for the existence of monopolies are Ownership of a key resource, Government law, Ownership of a key resource, Economies of scale, Network results, and Product differentiation.
A monopoly is a marketplace situation where there is simplest one vendor of a terrific or provider and no close substitutes available for purchasers. Monopolies are generally unwanted due to the fact they could price high prices, restrict output, and reduce client surplus and social welfare.
There are one-of-a-kind reasons why monopolies may additionally exist, however, they all contain a few forms of barrier to entry that stops other corporations from competing with the monopolist. Here are 5 possible motives for the existence of monopolies:
Ownership of a key resource: A corporation that has unique manipulation or possession of a key resource this is crucial for the production of an excellent or service can establish a monopoly by way of proscribing get right of entry to that resource. For example, De Beers had a monopoly over the global diamond marketplace for decades as it managed most of the sector’s diamond mines and distribution channels.
Government law: The authorities can create or guard a monopoly by means of granting prison rights or privileges to a single company or a group of firms to provide a terrific service. This may be completed through patents, copyrights, logos, licenses, franchises, subsidies, price lists, quotas, or other rules that restrict the opposition. For instance, many public utilities inclusive of water, power, gasoline, and telecommunications are natural monopolies that can be regulated through the government to save you abuse of marketplace power.
Economies of scale: A firm can attain a monopoly if it may produce at a decreased common fee than its capability competition because of large-scale production. This is also referred to as a natural monopoly as it arises from the inherent characteristics of the industry as opposed to external elements.
A herbal monopoly can experience increasing returns to scale, which means that its average price decreases as its output increases. This makes it difficult for new entrants to compete with the incumbent company because they could incur higher expenses at lower tiers of output. For example, railways, pipelines, and cable networks are regularly herbal monopolies due to the fact they require big constant prices and large infrastructure to operate.
Network results: A company also can come to be a monopoly if it benefits from network consequences, which means that the value of its proper or provider will increase as more people use it. This creates a wonderful comments loop that attracts greater customers and discourages switching to alternative products or services. Network consequences can result from technological compatibility, standardization, interoperability, or social impact.
For instance, Microsoft had a monopoly over the non-public computer running system marketplace for decades because maximum software program packages and hardware gadgets were designed to run on Windows, making it extra handy and well-suited for users.
Product differentiation: A organization can also create a monopoly by presenting a completely unique or advanced product or service that has no close substitutes inside the marketplace. This may be finished via innovation, branding, advertising, consumer loyalty, or satisfaction. A product differentiation monopoly can charge a top-class charge for its products or services and enjoy excessive earnings margins.
However, this sort of monopoly is generally greater at risk of competition than different kinds because new entrants can imitate or surpass its services or products over time. For example, Apple had a monopoly over the telephone market for some time because it supplied a progressive and different product (the iPhone) that appealed to many clients.
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To be a kindergarten teacher do you need university
Does anyone’s else’s teacher do this and does not let you complete the test-
Which of the following registered pension plan(s) offer no limits on contributions? I. Defined Contribution pension plans II. Defined Benefit pension plans III. Deferred Profit-Sharing plans IV. Retirement Compensation Arrangements V. Individual Pension Plans a) I and V b) IV c) IV and V d) II 1
,III,V Roger and Samantha had a marriage breakdown three years ago and have an existing spousal and child support arrangement, in which Roger is required to pay Samantha $3,000 a month. Now, Samantha feels the amount agreed upon was too less and would like it to be rearranged, The following are the conditions where a variation would be accepted, except: a) Samantha spoke to her friend who is a lawyer and is being told she could have received a larger amount in spousal support. b) Samantha notices a massive increase in inflation in the last three years. c) Roger and Samantha's child require extra medical expenses due to a severe illness. d) Roger's income has increased substantially in the last three years.
The registered pension plan(s) that offer no limits on contributions are IV and V i.e. Retirement Compensation Arrangements and Individual Pension Plans. In these plans, contributions are set by the individual employee and employer.
They are not limited to a specific amount like Defined Contribution pension plans and Defined Benefit pension plans.Individual Pension Plans (IPPs) are defined benefit pension plans established by the self-employed, small business owners, and executives. In an IPP, an individual assumes the role of the employer, the employee, and the trustee. IPPs offer an increased contribution limit and tax deductions compared to a regular RRSP, it should be based on the change in circumstances of the parties involved. In this case, Roger's increased income and their child's increased medical expenses can be considered as valid reasons for a variation. However, inflation is not considered a valid reason unless it causes undue hardship for one of the parties.
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Which of the following did Taylor NOT find "appalling" in his study of workers in steel companies? A) Workers "took it easy" on the job. B) Workers employed different techniques for the same job. C) Workers would only attempt to perform a job if they were shown to have aptitude for it. D) Worker output was only about one-third of what was possible.
The correct option is C. In his study of workers in steel companies, Taylor found all of the options listed except for C to be "appalling."
He was especially critical of workers who "took it easy" on the job and didn't work to their full potential. Taylor believed that there was only one best way to do a job, and workers who employed different techniques were inefficient and wasteful. Additionally, he found worker output to be far below what was possible, with many workers only producing about one-third of what they could. Taylor believed that by implementing scientific management principles and standardizing work processes, worker productivity could be greatly increased. Therefore, C is the option that Taylor did not find "appalling" as it relates to worker performance in steel companies.
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If you are interviewed by more than one person, you should send a thank-you note to _____.
each person in the interview
each person you see in the building
the first person you are introduced to
the person who is obviously leading the interview
Answer:
option A is correct.
i.e.
each person in the interview.
Explanation:
Because thank-you letter provides a simple but effective way to express gratitude to all the individuals you met with.
Celebrate Corp. is an apparel company. After a slow start, it saw a steep rise in the number of its customers and a remarkable increase in its profits. However, with the launch of competing apparel manufacturers in the market, the profits of Celebrate have started declining. To sustain its growth in the market, the managers of Celebrate should _______.
To sustain its market growth, the managers of Celebrate Corp. should b. shift to aggressive brand advertising and open new branches.
What is aggressive brand advertising?Aggressive brand advertising involves the use of provocative tactics to generate and capture the attention of the intended audience (customers).
Aggressive branding draws attention to itself by creatively depicting competitors in a bad light.
a. suggest top management to reduce the number of employees in the company
b. shift to aggressive brand advertising and open new branches
c. distribute the company's products at limited outlets
d. focus on primary demand stimulation rather than advertising to the brand
Thus, to sustain its market growth, the managers of Celebrate Corp. should choose Option b.
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arts stream padhne se aacha to python ya java ki book pdf download kar lo usse padh lo
Answer:
Hahahahahahahha is it that much difficult
What is vulnerability? Give examples of vulnerability and the
mitigation method can be taken to remove it.
Vulnerability refers to a weakness or flaw in a system, process, or infrastructure that can be exploited by malicious actors to gain unauthorized access, disrupt operations, or compromise data integrity and confidentiality. Vulnerabilities can exist in software, networks, hardware, and even human factors.
Software Vulnerability: A software application may contain coding errors or design flaws that can be exploited.
Network Vulnerability: Weak network configurations, unsecured wireless networks, or outdated protocols can leave networks vulnerable.
Social Engineering Vulnerability: Humans can be a weak link in security.
Hardware Vulnerability: Flaws or weaknesses in hardware components can create vulnerabilities. For example, a hardware keylogger inserted between a keyboard and computer can record keystrokes.
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Bondseye Company, a merchandising firm that uses a periodic inventory system had the following activities and results in their inventory for the first quarter of the year: Beginning Inventory First Purchase Second Purchase Third Purchase Periodic Inventory Information: Units 191 164 190 184 Price Per Unit $51 $52 $54 $55 Totals ???? ???? If there were 198 units remaining in ending inventory, what values are placed on both the ending inventory and the cost of goods sold, using: A) FIFO B) LIFO C) Weighted-Average (6 answers required)
A) FIFO are 10,120.00 and 9,768.00 respectively
B) LIFO are 3,734.00 and 10,720.00 respectively.
C) Weighted-Average are 10,497.14 and 23,437.37 respectively.
Given the information about Bondseye Company's inventory activities and results, the values placed on the ending inventory and the cost of goods sold using the FIFO, LIFO, and Weighted-Average methods are as follows:
We are given that the first purchase contains 164 units at a price of 52.00 per unit, which results in a total of 164 × 52.00 = 8,528.00.
Similarly, the second purchase contains 190 units at a price of 54.00 per unit, which results in a total of 190 × 54.00 = 10,260.00.
Finally, the third purchase contains 184 units at a price of 55.00 per unit, which results in a total of 184 × 55.00 = 10,120.00.
Therefore, the totals for the inventory activity and the purchase price are calculated as shown below:
51 52 54 55
Totals Beginning Inventory 191 $9,741.00
First Purchase 164 $8,528.00
Second Purchase 190 $10,260.00
Third Purchase 184 $10,120.00
Totals 729 $38,649.00
For the calculation of the ending inventory and the cost of goods sold, the different methods are used as follows:
FIFO (First-In, First-Out):
Ending inventory:
The total number of units in the ending inventory is 198, so the last 198 units are assumed to be from the third purchase because they are the most recent.
As a result, the ending inventory would be calculated as follows:
Ending inventory = 184 (third purchase) + 14 (remaining from second purchase) = 198Cost of goods sold:
To calculate the cost of goods sold using the FIFO method, the first purchase is assumed to be sold first, followed by the second purchase, and finally, the third purchase.
The cost of goods sold is calculated as shown below:
Cost of goods sold = (164 × $52.00) + (27 × $54.00) + (147 × $55.00) = $9,768.00
LIFO (Last-In, First-Out):
Ending inventory:
The total number of units in the ending inventory is 198, so the first 198 units are assumed to be from the first and second purchases because they are the earliest.
As a result, the ending inventory would be calculated as follows:
Ending inventory = 27 (second purchase) + 171 (first purchase) = 198
Cost of goods sold:
To calculate the cost of goods sold using the LIFO method, the last purchase is assumed to be sold first, followed by the second-to-last purchase, and finally, the first purchase.
The cost of goods sold is calculated as shown below:
Cost of goods sold = (184 × $55.00) + (6 × $54.00) + (9 × $52.00) = $10,720.00
Weighted-Average:
Ending inventory:
To calculate the ending inventory using the Weighted-Average method, we must first compute the weighted-average unit cost.
This is done by dividing the total cost of the inventory by the total number of units.
The calculation is shown below:
Weighted-average unit cost = Total cost of inventory / Total number of units = $38,649.00 / 729 = $52.93
The ending inventory would be calculated by multiplying the weighted-average unit cost by the number of units in the ending inventory, as shown below:
Ending inventory = 198 × $52.93 = $10,497.14
Cost of goods sold:
To calculate the cost of goods sold using the Weighted-Average method, we must multiply the number of units sold by the weighted-average unit cost.
The calculation is shown below:
Cost of goods sold = (729 – 198) × $52.93 = $23,437.37
Therefore, the values placed on both the ending inventory and the cost of goods sold, using:
A) FIFO are $10,120.00 and $9,768.00 respectively
B) LIFO are $3,734.00 and $10,720.00 respectively.
C) Weighted-Average are $10,497.14 and $23,437.37 respectively.
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Lox, stock and bagel, inc., issued $100,000 of stock. it recorded the transaction by increasing cash and decreasing common stock. as a result of this entry, the accounting equation will?
The accounting equation will balance, but the transaction was recorded in the wrong accounts.
An easy transaction version may be defined as a model of financial interdepend which includes a matrix of transactions collectively with a matrix of impartial responses or injections and a matrix of established responses based totally on the assumption that the allocation of outgoings depends on the full of incomings with.
A coin transaction is the instantaneous payment of cash for the acquisition of an asset. some market inventory transactions are taken into consideration coins transactions even though the trade may not accept a few days.
Transaction quantity approaches the range assigned chronologically to a transaction performed via a 2d hand items supplier utilized in a transaction record; sample 1.
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The increase in government spending on unemployment insurance payments to workers who lose their jobs during a recession and the decrease in government spending on unemployment insurance payments to workers during an expansion is an example of
Answer:
Automatic stabilizers
Explanation:
Automatic stabilizers is simply defined as government spending and taxes that immediately increase or decrease along with the business cycle. They are simply economic policies/programs prepared to limit or offset fluctuations in a nation's economic activity without intervention by the government or policymakers.
It is what it us because they act in the stability of the economic cycles and immediately are triggered without explicit government action.
many employees of a prominent university conduct their financial transactions through a financial institution, which is also owned by them. this financial institution is most likely to be a(n)
A credit union is the most likely type of financial institution.
Which of the following phrases describes debt owed to a business by clients or customers who have agreed to pay for the goods later?The sum of money that clients owe your business for goods or services that have been supplied is represented by accounts receivable (AR).
What financial statements are used by businesses to assess their financial health?The income statement, often known as the profit and loss statement or P&L, gives a brief overview of the revenues and expenses for a given time frame. Organizations can compare trends in income and spending over time using the income statement, which is frequently published annually or quarterly.
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Which challenge leads to a gap between the objectives of the IS systems and the business needs when developing the IS?
Answer: Lack of documentation
Explanation:
Which of the following words could be registered as a trademark?
a. Crunchy peanut butter.
b. Low-fat peanut butter.
c. Green peas.
d. yStar peanuts.
The following words could be registered as a trademark are Crunchy peanut butter and y Star peanuts. A trademark is a symbol or sign used to identify goods or services that are provided or manufactured by an entity or individual.
Trademarks are governed by intellectual property law and are used to protect the goods of the owner by ensuring that no other party may sell or trade products with a similar design or name without the owner's permission. Words that can be registered as trademarks.
A name that is distinctive of the products or services. A term or phrase that is exclusive to the goods or services and is not commonly used. A logo or design that is unique and represents the product or service. A sound or audio sequence that is unique to the product or service.
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Boreki enterprises has the following 10 items in inventory. Theodore boreki asks you, a recent om graduate, to divide these items into abc classifications. Develop an abc classification system for the 10 items. How can boreki use this information
An ABC classification system is a popular method of inventory classification that categorizes inventory based on the item's value and usage.
To develop an ABC classification system for the 10 items in Boreki Enterprises' inventory, we first need to calculate the annual usage value for each item. This is done by multiplying the item's cost per unit by the number of units used in a year. Once we have the annual usage value for each item, we can rank them from highest to lowest.
The next step is to divide the items into three categories - A, B, and C. The items in category A are high-value items that account for a significant portion of the total inventory value. These items usually have a high annual usage value and should be closely monitored. The items in category B are medium-value items that have a moderate annual usage value. These items require some attention but not as much as category A items. Finally, the items in category C are low-value items that have a low annual usage value. These items do not require much attention and can be managed with minimal effort.
In this case, assuming that we have calculated the annual usage value for each item, we can divide them into categories as follows:
Category A: Items with the highest annual usage value, such as Item 1, Item 2, and Item 3.
Category B: Items with a moderate annual usage value, such as Item 4, Item 5, and Item 6.
Category C: Items with the lowest annual usage value, such as Item 7, Item 8, Item 9, and Item 10.
By using this ABC classification system, Boreki can focus on managing the high-value items in category A, while keeping a moderate level of attention on the medium-value items in category B. The low-value items in category C can be managed with minimal effort, allowing the company to allocate resources more efficiently. Overall, this classification system helps Boreki better understand the value of each item in their inventory and prioritize their management efforts accordingly.
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