The structure of repayment for most long-term bonds consists of a. fixed coupon payments every year until maturity. b. interest payments that vary by the yield to maturity each year. c. fixed coupon payments each year plus the face value or par value at maturity. d. converted payments from interest to dividends halfway to the bond's maturity. e. a balloon payment at maturity.

Answer:

The correct answer is letter "A": Production increases at a decreasing rate.

Explanation:

Law of Diminishing Returns states that the marginal product of an additional employee will be less than the marginal product of a previous employee at some point as the number of new employees increases. Adding additional employees at a certain point will saturate the workplace to the point that there will be workers without being assigned duties. There, productivity begins to decrease gradually.

Answer:

The answer is D. identify the problem or opportunity.

Explanation:

The first step in making the right decision is recognizing the problem or opportunity and deciding to address it, this involves  determining why this decision will make a difference to your customers.

Answer:

The question is not complete:

Here is the complete question:

The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At the end of the year, pension benefits paid by the trustee were $21 million and there were no pension-related other comprehensive income accounts requiring amortization. The actuaries discount rate was 5%. The actual return on plan assets was $24 million although it was expected to be only $23 million.

What was the pension expense for the year?

Here is the answer: The pension expense is $25 million.

Explanation:

Pension is the form of defined benefit contribution plan which require employers to make certain periodic contribution on behalf of employees. This contribution is reported as an expense in the income statement if even though the benefit has not been enjoyed by the employees. To determine the value of this expenses to be included in the income statement, the components of the pension expenses are relevant.

Components of pension expense are service cost, interest cost, return on plan asset, amortization of prior service costs and gain or loss from change in asset value.

Here is the determination of the pension expense as required by the question.

                                                                            $`M

Service cost                                                          25

Interest ($460,000,000*5%)                               23

Expected return on plan asset                           (23)

Amortization of prior service costs                       -

Gain or loss in change in value                           -

Pension expense                                                 25

Answer:

A. 1.111

B. The process is not capable

Explanation:

Part A

Capacity index help todetermine the performance of a process and how it could perform in the future. A capacity index of above 1.33 means that the process is capable but a capacity index below 1.33 means that the process is not capable. The capacity index can be calculated using equation 1;

From the mean  which is 0.5, it can be determined that the process is a centered process.

For centered process, the mean = 0.5 x (Upper s. - Lower S.) = 0.5 x 0,02 = 0.04

so the capacity index for centered mean will be used

................................................1

Given standard deviation = 0.003

upper specification = 0.05

lower specification = 0.03

Therefore the capacity index of the process is 1.111

Part B

The capacity index of the process is 1.111 and it is less than 1.33, this means that the process is not capable.

Answer:

S/n   General Journal              Debit      Credit

a       Insurance expense        $1,200

               Prepaid Insurance                   $1,200  

        (To record insurance expired)

b       Supplies expense          $6,200

                Supplies                                  $6,200

                ($5,000 + $2,000 - $800)

         (To record supplies used)

Final answer:

Lopez company should adjust their prepaid insurance and Zim company should adjust their supplies account due to their use during the year. Both adjustments will be debits to relevant expense accounts & credits to Prepaid Insurance for Lopez, and Supplies for Zim.

Explanation:

The two adjustments that need to be made are for the prepaid insurance and the supplies. To compute the adjustment for the prepaid insurance, we would divide the total insurance payment by the number of months covered to find the monthly cost. For Lopez Company, six months of insurance is valued at $1,200, therefore the monthly cost is $200. From July 1 to December 31, six months have passed, so $1,200 of insurance has been used up. As a result, we need to debit the Insurance Expense account by $1,200 and credit Prepaid Insurance by $1,200.

Regarding Zim Company, the beginning balance in the Supplies account was $5,000, and it purchased $2,000 more throughout the year - that sum up to $7,000 of total supplies. At the end of the year, they still had $800 left, so they used $6,200 of supplies during the year. The adjustment will be a debit to Supplies Expense by $6,200 and a credit to Supplies by $6,200, reflecting the fact that those supplies are no longer available for use.

Learn more about Adjusting Entries here:

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