At certain times banks may not be willing to fully loan out all of their _____________ and customers may not be willing to borrow.
At certain times, banks may not be willing to fully loan out all of their deposits, and customers may not be willing to borrow due to various factors such as economic conditions.
During economic downturns or periods of financial uncertainty, banks become more cautious in their lending practices. This was evident during the fall of 2008, when the quantity of loans decreased, as many customers were viewed as higher credit risks, and the uncertainty of repayment extended beyond households to other banks and firms, primarily due to concerns over asset valuations.
Banks employ strategies to mitigate risks, such as diversifying their loans and selling some in the secondary loan market while retaining more liquid assets like government bonds or reserves. However, a lengthy recession can still negatively impact a bank's net worth due to an increase in loan defaults. Banks also face the challenge of an asset-liability time mismatch, where they may have to pay higher interest rates to depositors while earning less from longer-term loans, especially if interest rates rise unexpectedly.
A company sold merchandise with a cost of $238 for $440 on account. the seller uses the perpetual inventory system. the entry to record the cost of merchandise sold would include ________.
Under the perpetual inventory system, when merchandise is sold, the cost of goods sold is debited (increased), and the inventory is credited (decreased) by the cost of the goods (in this case, $238). This entry reflects the cost of the merchandise sold.
Explanation:When the company sells merchandise using a perpetual inventory system, the cost of the goods sold is transferred from the inventory account into the cost of goods sold (COGS) account. In this case, where the merchandise was sold for $440 but had an original cost of $238, the accounting entry would see a decrease in inventory by $238 and an increase in the COGS by the same amount.
Therefore, the entry to record the cost of merchandise sold would include a debit to Cost of Goods Sold (COGS) for $238 and a credit to Inventory for $238. Debits represent an increase in expense accounts such as COGS, and credits represent a decrease in asset accounts such as Inventory. This reflects the $238 cost of the merchandise that has been sold.
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Burlington coat factory warehouse, inc., had a dress code that required male sales clerks to wear business attire consisting of slacks, shirt, and necktie. female saleschecks, by contrast, were required to wear a smock so that customers could readily identify them. karen o'donnell and other female employees refused to wear the smock. instead they reported to work in business attire and were suspended. after numerous suspensions, the female employees were fired for violating burlington's dress code policy. all other conditions of employment, including salary, hours, and benefits, were the same for female and male employees. (o'donnell v. burlington coat factory warehouse, inc., 656 f.supp. 263 (s.d. ohio 1987) see employment discrimination was the dress code policy discriminatory
The io paradigm has been qualified by the potential for ________ to lead to a company's sustained competitive advantage.
What does the credit balance in the accumulated depreciation account represent?
Sally tends to procrastinate in the initial stages of a project, but she always comes through when the pressure is on. for sally, this pressure is a form of __________.
Esteban, a manager, performs a cost benefit analysis of the various alternatives to determine which one will have the best net financial payoff. this manager is focusing on which criterion for decision-making?
Shamas famous restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). dividends are expected to grow at a 4% rate for the foreseeable future. shamas’ common stock is selling for $18.50 per share and issuance costs are $3.50 per share. what is shamas cost of external equity?
The company's external equity comes from those funds raised from public issuance of shares or rights. The cost of external equity is the minimum rate of return which the shareholders supply new funds by purchasing new shares to prevent the decline of the market value of the shares. To compute the cost of external equity, we should use this formula:
Ke = (DIV 1 / Po) + g
Ke = cost of external equity
DIV 1 = dividend to be paid next year
Po = market price of share
g = growth rate
In the problem, the estimated dividend to be paid next year is $1.50. The market price is $18.50 and the growth rate is 4%.
Substituting the given to the formulas, we need to divide $1.50 by $18.50 giving us the result of 8.11% plus the growth rate; this would yield to the result of 12.11% cost of external equity.
Ryder and sergei are partners in timberline gear, which sells mountain- and rock-climbing equipment. ryder manages the business. unless the partnership agreement states otherwise, ryder is?
Krizum industries makes heavy construction equipment. the standard for a particular crane calls for 24 direct labor-hours at $16 per direct labor-hour. during a recent period 850 cranes were made. the labor rate variance was zero and the labor efficiency variance was $8,800 unfavorable. how many actual direct labor-hours were worked?
A labor rate variance equal to zero would mean that the standard labor rate is equal to the actual labor rate which is $16 per direct labor-hour. To recall, the formula for labor efficiency variance is:
Labor efficiency variance = (AH - SH) × SR
Where,
AH = actual number of hours worked = unkown
SH = standard number of hours worked = 850 cranes * 24 hours per crane = 20,400 hours
SR = standard labor rate = $16
Substituting the known values to the equation:
$8,800 = [AH – 20,400 hours] * $16 per hour
$8,800 = [AH - 20,400 hours] * $16 per hour
$8,800 = (AH * $16 per hour) – ($326,400)
AH * $16 per hour = $326,400 + $8,800
AH * $16 per hour = $335,200
AH = $335,200 / $16 per hour
AH = 20,950 hours
To calculate the actual direct labor hours worked, use the labor efficiency variance formula. In this case, the actual direct labor hours worked was 574 hours.
Explanation:To calculate the actual direct labor hours worked, we need to use the labor efficiency variance formula:
Labor Efficiency Variance = (Actual Hours - Standard Hours) x Standard Rate
Given that the labor efficiency variance is $8,800 unfavorable and the labor rate variance is zero, we can rearrange the formula to find the actual hours:
Actual Hours = Standard Hours + (Labor Efficiency Variance / Standard Rate)
Substituting the given values into the formula:
Actual Hours = 24 hours + ($8,800 / $16 per hour)
Actual Hours = 24 + 550
Actual Hours = 574 hours
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The __________ job market is comprised of internet job boards, want ads, newspaper ads, and radio advertisements. these are media sources where employers will proactively seek employees.
Bureaucratic rules designed to make it difficult for imports to enter a country are called local content requirements.
a. True
b. False
If a corporation has two classes of common stock, what is typically unique about the second or class b common stock?
A team has been established to solve a problem with an industrial adhesive used by the firm. the three members are the installer, an engineer, and the sales representative for the adhesive manufacturer, but the team does not have a specific leader. this team can be called a ________ team.
The answer is self-managed team. It is a group of people, usually workers in a company, who combine different expertise and capacities to work without the typical managerial supervision toward a shared purpose or goal. They are also called self-directed team or self-managed natural work team.
The team consisting of an installer, an engineer, and a sales representative for the adhesive manufacturer is known as a problem resolution team, aimed at solving a specific issue with an industrial adhesive.
Explanation:The team described in the question, which consists of an installer, an engineer, and the sales representative for the adhesive manufacturer without a specific leader, is best characterized as a problem resolution team. Problem resolution teams are focused on solving specific issues, which in this case is related to addressing a problem with an industrial adhesive used by the firm. This team structure often encompasses individuals with diverse expertise and perspectives to combine knowledge and achieve a workable solution in a specific area.
In engineering and business contexts, the integration of cross-functional skills, such as those from the installer, engineer, and sales representative, enable the team to consider multiple aspects of the problem, including application, technical specifications, and commercial implications. The cooperative effort of such a team is crucial in finding a successful resolution that aligns with the firm's operational and business objectives.
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When john and mary go on their first date, john reveals extensive personal information to mary. what is the likely result of john's self-disclosure?
Technological advances have resulted in fewer opportunities for small businesses abroad.
a. True
b. False
Which of the following will be recorded in the owner’s equity column as an increase
The choices are:
A. an exchange of assets
B. the purchase of an asset on credit
C. an investment by the owner
D. a withdrawal by the owner
The purchase of an asset on credit will be recorded in the owner's equity column as an increase.
To
add, the owner's equity represents the owner's investment in
the business minus the owner's draws or
withdrawals from the business plus the net income (or minus the net loss) since
the business began.
The net income earned by the cooper, cross, and crane partnership is $18,000. their respective average capital balances are $20,000, $20,000, and $40,000. what is the closing entry to allocate the net income if no agreement was made for division of income?
In the absence of an agreement on how income should be divided among the owners, the sharing of income will be based on their average capital balances (as what is given in the problem). Therefore, we need to determine the proportionate shares of the owners based on their contribution.
Here is the table showing the allocation of income:
Cooper $20,000/$80,000 X $18,000 = $4,500
Cross $20,000/$80,000 X $18,000 = $4,500
Crane $40,000/$80,000 X $18,000 = $9,000
Total $80,000 $18,000
The answer to your question is:
Debit Income Summary $18,000; credit Cooper's Capital $6,000; credit Cross's Capital $6,000; credit Crane's Capital $6,000.
Everyone likes to have lydia working on their committees because she seems to have the unique ability to consider a variety of options and quickly narrow the list of options down to the one or two best alternatives. in other words, lydia is skilled inâ
Compensatory damages replace what was lost because of what the breaching party did and for this reason are often said to "make the person whole." true or false
Coordination and policy harmonization problems are largely a function of the number of countries that seek agreement.
a. True
b. False
What are hourly wages? Select the best answer from the choices provided. income that is based on a yearly rate income that is based on the number of hours worked a benefit that is received once a year a benefit that is based on the number of hours worked
Answer:
The correct answer is letter "C": a benefit that is based on the number of hours worked.
Explanation:
Hourly wages refer to the amount of money an employer agrees to pay an employee per hour according to the type of job that person will perform. The total wage will be the result of multiplying the hourly rate agreed by the total number of hours the employee worked.
If a building was 750 feet tall how many stories would it have
Which of the following is the correct minimum coverage that you must have for Property Damage Liability?
Jones company reported pretax book income of $400,000. included in the computation were favorable temporary differences of $50,000, unfavorable temporary difference of $20,000, and favorale permanent differences of $40,000. book equivalent of taxable income is:
In this case, the book value of taxable income would simply be the difference in pretax book income and favorable permanent differences. That is:
Taxable income = Pretax book income – Favorable permanent differences
Taxable income = $400,000 - $40,000
Taxable income = $360,000
When security issues are a special concern, companies want to take extra steps to make sure that transmissions can’t be intercepted or compromised. in these situations they will use a network that encrypts the packets before they are transferred over the network. this solution is called a(n)?
Consider two cigarette companies, pm inc. and brown inc. if neither company advertises, the two companies split the market and earn $50 million each. if they both advertise, they again split the market, but profits are lower by $10 million since each company must bear the cost of advertising. yet if one company advertises while the other does not, the one that advertises attracts customers from the other. in this case, the company that advertises earns $60 million while the company that does not advertise earns only $30 million. refer to scenario 17-4. if these two companies collude and agree upon the best joint strategy,
a. neither company will advertise.
b. both companies will advertise.
c. pm inc. will advertise but brown inc. will not.
d. brown inc. will advertise but pm inc. will not.
To solve this problem, let us try to break down each scenario one by one. We must calculate the total earnings that the two companies receive for each scenario.
Scenario 1: Neither company advertise
Earning of PM Inc = $ 50 M
Earning of Brown Inc = $ 50 M
Total Earning = $ 100 M
Scenario 2: Both companies advertise
Earning of PM Inc = $ 40 M
Earning of Brown Inc = $ 40 M
Total Earning = $ 80 M
Scenario 3: One company advertise, let us say PM Inc is the company who advertise and Brown Inc does not
Earning of PM Inc = $ 60 M
Earning of Brown Inc = $ 30 M
Total Earning = $ 90 M
We can see that Scenario 1 has the largest total earnings of all scenarios. Therefore the best strategy is:
A. neither company will advertise
What is the future value of $1,000 after six months earning 12% annually?
Describe how cost information relates to the three key activities of management: planning, budgeting, and control.
A singles business aims its promotions toward singles between the ages of 25 and 40 who reside in a specific county. the business has ________.