Answer: Encumbrance
Explanation: The commitment made by a governmental unit to buy some product for use in administration is recorded in the general fund as an encumbrance which is defined as an interest, right, burden or liability that must be carried. As such, an encumbrance ensures that there will be enough funds available for the payment of certain governmental obligations and commonly refers to restricted funds in the general fund account.
Answer:
Encumbrance
Explanation:
An encumbrance is a portion of a budget set aside for spending required by law or contract. Like the budget itself, an encumbrance is a projection and not yet a reality. If business conditions continue as they are when you set the budget, then the encumbrance will become an expense.
The most common types of encumbrance apply to real estate; these include mortgages, easements, and property tax liens. Not all forms of encumbrance are financial, easements being an example of non-financial encumbrances. An encumbrance can also apply to personal – as opposed to real – property.
B. lead users
C. early followers
D. intrapreneurs
Answer:
Letter B is correct. Lead Users.
Explanation:
Term developed by prof. Eric von Hippel, Lead Users are those users who are able to transform, adapt and modify a company's product or service for their own benefit, as they face the same market needs a while before regular users.
For Prof Eric von Hippel, there are four steps in developing Lead Users:
The premise is that the Lead Users method is effective in identifying innovation and product trends that need to be developed for a market for your needs.
Unlike supportive leadership, participativeleadership is used when the formal authority system is clear.
Participative leadership is based on getting engagement and involvement of employees in the decision-making process. This style enables employees to feel motivated and belonged to the organization.
Therefore, this is usually incorporated in big organizations where there are more layers of hierarchy, which calls for collaboration of employees as all role and authority is clearly defined.
Learn more about leadership here:
Answer:
b.
Explanation:
Answer:
Dr Bonds payable $90,300,000
Dr loss on early redemption of bonds $5,106,000
Cr Discounts on bonds payable $3,300,000
Cr Cash $92,106,000
Explanation:
The amount of cash paid to bondholders by calling the bonds is the 102% of the face value of $90.3 million i.e $90.3*102%=$92,106,000
The proceeds would debited to cash while the face value of the bond of $90.3 million would be debited to bonds payable account.
In addition the remaining discount of $3.3 million would credited to discounts on bonds payable account.
The loss or gain on the bond call can then be determined as appropriate.
Answer:
$32,900 favorable
Explanation:
The computation of the total flexible budget variable overhead cost variance is shown below:
= Total budgeted overhead cost - actual budgeted overhead cost
where,
Total budgeted overhead cost is
= $9.40 × 74,900 hours
= $704,060
And, the actual budgeted overhead cost is
= $8.40 × 79,900 hours
= $671,160
So, the total flexible budget variable overhead cost variance is
= $704,060 - $671,160
= $32,900 favorable
Since the standard cost is greater than the actual cost so it would have favorable variance
Answer:
(A) The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run the check-signing machine.
Explanation:
A segregation of duties is an internal control in business. It is assigning more than one person to a task usually to prevent error or any fraudulent activity. Therefore, the treasurer giving the signature block to the assistant treasurer to run the check-signing machine is not a violation of a segregation of duties.
Sales $38,000 Assets $27,300 Debt $6,700
Costs 32,600 Equity 20,600
Net income $5,400 Total $27,300 Total $27,300
The company has predicted a sales increase of 20 percent. Assume the company pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not.
a. Prepare the pro forma statements.
b. Determine the external financing needed.
Answer and Explanation:
a. Proforma income statement
Sales $45,600
Costs $39,120
Net income $6,480
b. Proforma balance sheet
Particulars Amount Liabilities Amount
Assets $32,760 Debt $8,950
Equity $23,810
Total $32,760
External finance = Predicted debt - Beginning debt
= $7,585 - $6,700
= $885
Working note:-
For pro forma statements:
Sales = $38,000 × (1 + 0.20)
= $38,000 × 1.20
= $45,600
Costs = 32,600 × (1 + 0.20)
= $32,600 × 1.20
= $39,120
Net income = Sales - Costs
= $45,600 – 39,120
= $6,480
Assets = 27,300 × (1 + 0.20)
= 27,300 × 1.20
= $32,760
Equity = Beginning balance + Net income - Dividend
= $20,600 + $6,480 - ($6,480 × 1 ÷ 2)
= $20,600 + $6,480 - $3,240
= $23,810
Debt = Assets - Equity
= $31,760 - $23,810
= $8,950
The pro forma statements are prepared by adjusting the sales, costs, and assets by the 20% increase. The net income and dividends are then calculated. The external financing needed is found by deducting the sum of debt, equity and retained earnings from the adjusted total assets.
The pro forma statements are prepared by first adjusting sales, costs, and assets by the predicted increase of 20%. The new sales amount would be $38,000 * 1.20 = $45,600. Costs increase at the same rate, so the new costs would be $32,600 * 1.20 = $39,120. The new assets would be $27,300 * 1.20 = $32,760.
On the pro forma income statement, the net income is calculated by subtracting the new costs from the new sales, which is $45,600 - $39,120 = $6,480. The dividend would be $6,480 * 0.50 = $3,240. The retained earnings (AKA addition to retained earnings) increase by the net income minus the dividends, which is $6,480 - $3,240 = $3,240.
On the pro forma balance sheet, the total assets increased to $32,760. As debt and equity don't change, then they remain at $6,700 and $20,600 respectively. The sum of debt and equity added to the predicted retained earnings is $6,700 + $20,600 + $3,240 = $30,540. Therefore, the external financing needed is the new total assets minus this sum, which is $32,760 - $30,540 = $2,220.
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