Answer:
A.Journal entries
(1)
Dr Investment in AMC common shares
$580,000
Cr Cash $580,000
(2) No journal entry required
(3) Dr Cash $31,250
Cr Investment Revenue $31,250
(4) Dr Fair value adjustment
$35,000
Cr Net unrealised holding gains and losses- OCI $35,000
(B.) Journal entries
Dr Investment in AMC common shares $580,000
Cr Cash $580,000
(2) Investment in AMC common shares
Dr $87,500
Cr Investment Revenue $87,500
(3) Dr Cash $31,250
Cr Investment in AMC common shares $31,250
(4) No journal entry required
Explanation:
A.Journal entries
(1)
Dr Investment in AMC common shares
$580,000
Cr Cash $580,000
(2) No journal entry required
(3) Dr Cash $31,250
Cr Investment Revenue $31,250
(4) Dr Fair value adjustment
$35,000
Cr Net unrealised holding gains and losses- OCI $35,000
Working notes:
Cash Dividends = 25%*500,000*$0.25 = $31,250
Adjustment entry:
Fair value adjustment = 580,000-615,000 = $35,000
B.) Journal entries:
(1)
Dr Investment in AMC common shares $580,000
Cr Cash $580,000
(2) Investment in AMC common shares
Dr $87,500
Cr Investment Revenue $87,500
(3) Dr Cash $31,250
Cr Investment in AMC common shares $31,250
(4) No journal entry required
Working notes:
Net Income:
Investment in AMC common shares = 25%*350,000= $87,500
Cash Dividends = 25%*500,000*$0.25= $31,250
(C) mutual trust is based on an ongoing process of give and take.
Answer:
(A) an ongoing process of give and take is based on mutual trust.
Explanation:
Tragedy of the commons is a situation where individuals in a shared resource system act independently in their own self-interest. They behave in opposition to the common good and deplete shared resources.
In shared resource system there needs to be a collaborative approach between the parties to make sure resources are not exploited.
There needs to be an ongoing process of give and take based on mutual trust to sustain the system.
The concept of the tragedy of the commons has been used in sustainable development, economics, sociology, politics, taxation, and global warming.
b.Meteor
c.Cash cow
d.Shiner
e.Top dog
Answer:
It is Star (B)
Explanation:
Option (a) True. Star is a product with high relative market share in a high growing market . This product is full of potential but require more investment and spending in the areas of advertising,innovation and market research in order to maintain its market leadership position. Hence, it might be cash neutral at this stage.
In the long-run, it will eventually turns to cash cow in the portfolio if we can sustain its position.
Option(b) Meteor. False. This does not exist in product portfolio matrix.
Option (c) Cash cow. False.
This product has a large relative market share in a stagnating (mature) market, profits and cash flows are expected to be high. Because of the lower growth rate, investments needed should also be low.
Hence, they typically generate cash in excess of the amount of cash needed to maintain the business and this ‘excess cash’ is supposed to be ‘milked’ from the Cash Cow for investments in other business units (Stars and Question Marks). Cash Cows ultimately bring balance and stability to a portfolio.
Option (d) Shiner. False .It does not exist
Option (e) Top dog. It is a product with low relative market share in a stagnant market.
b. Du Pont analysis is based on the fact that return on equity (ROE) can be expressed as the sum of four other ratios.
c. It is relatively easy to interpret a ratio in the absence of comparative data.
d. There are no limitations to financial statement analysis, so analysts can always be confident of their conclusions.
e. None of the above statements is correct.
Answer:
The answer is e) None of the above statements is correct.
Explanation:
The current ratio, which measures the coverage of current assets against current liabilities, though used widely faces the limitation that it does not adequately reflect how well a company pays-off its short term debt. In simple terms, a high current ratio indicating how well a company pays short term debt is not forcefully appreciated in a given economic condition. as it is affected by elements such as time for collectinig bills. This is why to move in line with the going-concern principle, the acid test ratio is the best available measure of liquidity.
Du pont analysis is a form of financial ratio tools that comprises of 3 other financial ratios to provide better comprehension of the Return on Equity of a company. That is Net Profit Margin, Asset Turnover and Totat assets to Total equity ratios.
Interpretation of financial ratios requires the use of data so as to provide a comparison and determine the changes in the financial position of a company.
There are existing limitations to financial statement analysis such as the effect of inflation, the fact that data used for comparison is based on past information and it becomes to hard to predict the future. Considering these, analysts should rather be careful when communicating financial information.
The correct answer is 'b' - Du Pont's analysis is based on a relationship between ROE and three other ratios, not four. The statement 'a' isn't entirely true as the current ratio ignores the type and quality of current assets. Statements 'c' and 'd' are incorrect as analyzing a ratio without comparative data is misleading and limitations exist in financial statement analysis.
The correct statement about financial statement analysis is option 'b. Du Pont's analysis is based on the fact that return on equity (ROE) can be expressed as the product of three other ratios: the net profit margin, the total assets turnover, and the financial leverage ratio, not four. It's crucial to note that, while the current ratio can provide insight into a company's liquidity, it's not universally 'the best' measure because it fails to account for the nature and quality of current assets. Statements 'c' and 'd' are also incorrect; interpreting ratio data without comparative data lacks context and can be misleading, and financial statement analysis does have limitations such as not considering non-financial factors or possible manipulation of financial statements.
#SPJ3
Answer:
prices rise, employment rises.
Explanation:
In the starting equilibrium price, there would be more demand that result in fall in the firm inventory. Now in order to maintain the level of the inventory the firm would have to rise the production for this the firm should hire more wokers due to this the employment would rise also the wages are more paid as compared to before so it increase the production cost that results in rise in price
Therefore the above represent the answer
Answer:
Function
Explanation:
Functional departmentalisation is when staff who perform similar functions are put in the same department.
Examples of functional departmentalisation includes- marketing department, production department, finance department, human resources department.
Advantages of functional departmentalisation include:
1. It makes coordination of activities easier
2. It enhances supervision of staff
3. It enhances specialisation.
Functional departmentalisation can lead to overspecialisation and the inability of managers to perform in other departments other than their primary departments.
Other types of departmentalisation are :
1. Customer departmentalisation
2. Geographic departmentalisation
3. Process departmentalisation
4. Product departmentalisation
B. Linking your comments to comments made by other panelists.
C. Integrating evidence into your comments.
D. Making sure that your viewpoints are clearly heard.
Answer:
Making sure that your view points are clearly heard.
Explanation:
Effective communication can be defined as the process of passing out information in a clear and concise manner. It is a means of successfully conveying information to the listener.
Effective communication helps to improve productivity among employees in an organisation. This type of communication can be enhanced by a good body language.
In the scenario described above, an effective communication can be achieved by ensuring that your viewpoints are clearly understood by the audience.
Answer:
d
Explanation: