Cash revenue will increase the amount of cash available to the business, which will cause the amount of cash to increase.
What is Cash revenue?Cash revenue is money that a business receives from its customers in exchange for goods and services. It is the main source of income for a business, and is generally recorded when the money is received. Cash revenue can come from a variety of sources, including sales of products or services, interest income, and dividends.
At the same time, providing services to customers will also increase the amount of retained earnings, which is the cumulative net income of the business, since the profit from the services will be added to the retained earnings. Therefore, the answer is that providing services to customers will cause the amount of cash to increase and the amount of retained earnings to increase.
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how a drug company made $114 billion by gaming the u.s. patent system?
The manufacturer of Humira, AbbVie, successfully but legally exploited the US patent system to keep competitors out of the market. Throughout the subsequent six years, the medication's price grew steadily.
What is a drug company called?The manufacturer of Humira, AbbVie, successfully but legally exploited the US patent system to keep competitors out of the market. Throughout the subsequent six years, the medication's price grew steadily.For example;johnson &johnson,Pfizer,Merck,etc.Iindia-based Sun Pharmaceutical Industries Ltd is the leading pharma company (by market cap).
What is the best drug company?There are following some best and famous drug companies are:-
Johnson & JohnsonPfizerGlaxoSmithKlineMerck.Roche.AbbVie.Novartis.Bristol Myers Squibb.To know more about the drug company visit;
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which hotel management role most impacts guest satisfaction? group of answer choices general manager director of housekeeping concierge director of food and beverage
The correct answer to the question above is "Hotel general manager".
Hotel general manager function:Providing owners with a reasonable return on their investmentKeeping guests satisfied and returningkeeping employees happyDirector of housekeeping:make sure that the housekeeping department runs in an efficient mannerresponsible for maintenance, cleanliness, and aesthetics of rooms, pubic area, back area, and surrounding. director of food and beverage:to ensure the quality of food and beverage they servedmaintain guest stratification on their dining experienceLearn more abour hotelier departement at: https://brainly.com/question/15062758
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the corporate office has determined that the company vision needs to be amended. what should corporate leaders do to increase the likelihood that employees will accept this change?
To increase the likelihood that employees will accept the amendment of the company vision, corporate leaders should consider steps like Communication,Involvement,Training,Lead by example,Celebrate successes.
A corporate leader is a company's senior executive. Together with other executives, they can assess the business's performance, develop and implement rules for all employees, and Explain the changes' justifications and how they fit with the organization's values and objectives in a straightforward and open manner. Encourage employee participation and give them the chance to provide suggestions and ask questions.
To assist staff members in comprehending and internalising the new vision, provide training and resources.
Lead by example: Set a good example for your team by acting in a way that aligns with the attitudes and principles that the new vision demands.
Celebrate accomplishments: Emphasize and rejoice in the achievements brought about by the realisation of the new vision.
Corporate executives can raise the possibility that staff members will accept and support the modification of the business vision by adopting these actions.
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a company has sales of $100,000, beginning inventory of $20,000, and purchases of $70,000 during the year. if its gross profit percentage is consistently 60%, the estimated amount of its ending inventory is
The estimated amount of its ending inventory is $50,000 .
What does "finishing inventory" mean?
Ending inventory, often referred to as closing inventory, is the cost of the items that a business has in stock and is ready to sell at the conclusion of a specific accounting period.
Businesses in almost every industry need to know how to calculate ending inventory.
$50,000
Gross Profit: $100,000 x 60% = $60,000
Cost of Goods Sold: $100,000 - $60,000 = 40,000
Goods available for sale: Beginning inventory of $20,000 + Purchases of $70,000 = $90,000
Ending inventory: Goods available of $90,000 - Cost of goods sold of $40,000 = $50,000
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compute the cost per unit and the gross margin per unit assuming output and sales of: 500,000 units. 750,000 units.
To compute the cost per unit and gross margin per unit for 500,000 units and 750,000 units of output and sales, you need to first calculate the total costs and total sales for each amount of output.
For 500,000 units, the total costs would be $200,000 (fixed costs) plus 500,000 x $30 (variable costs) = $20,000,000. The total sales would be 500,000 x $50 (sales price) = $25,000,000.For 750,000 units, the total costs would be $200,000 (fixed costs) plus 750,000 x $30 (variable costs) = $30,000,000. The total sales would be 750,000 x $50 (sales price) = $37,500,000.Once you have the total costs and total sales for each amount of output, you can calculate the cost per unit and gross margin per unit by dividing the total costs and total sales by the amount of output.
For 500,000 units, the cost per unit would be $20,000,000 / 500,000 = $40 and the gross margin per unit would be $25,000,000 / 500,000 = $50.For 750,000 units, the cost per unit would be $30,000,000 / 750,000 = $40 and the gross margin per unit would be $37,500,000 / 750,000 = $50.Learn more about cost and gross margin :
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li corporation reported pretax book income of $710,000. tax depreciation exceeded book depreciation by $525,000. in addition, the company received $305,000 of tax-exempt municipal bond interest. the company's prior-year tax return showed taxable income of $69,000. assuming a tax rate of 21 percent, compute the company's deferred income tax expense or benefit.
Therefore, , The company’s current income tax expense or benefit is $14490
What is Tax-Exempt ?Tax exemption is the reduction or elimination of a requirement to make a required payment that would otherwise be imposed on individuals, properties, income, or transactions by a ruling power. Tax-exempt status might offer full tax exemption, reduced rates, or tax on only some things.
Income that is exempt from federal, state, or municipal taxes is considered tax exempt. A person or organization (such as a charity) may qualify for the exempt status if their income is not subject to taxation, or it may apply to specific tax-free goods and services (such as groceries).
The employee must have had no tax due for the prior year and not anticipate having any for the current year in order to be eligible for this exempt status. A Form W-4 that requests a withholding exemption is only valid for the calendar year in which it is given to the employer.
Net operating loss = pretax book income - depreciation - tax-exempt municipal bond interest
= 710000 - 525000 - 305000
= -120000
Current tax benefit = Net Operating Loss carryback to prior year*tax rate
=69000*21%
Therefore, since the tax rate is not mentioned, The company’s current income tax expense or benefit is $14490
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abc's balance sheet lists current assets of $300, current liabilities of $200, fixed assets of $700, long-term debt of $400. abc has 200 shares outstanding. what is the market-to-book ratio (mtb) if the market price per share is $8?
The market-to-book ratio value is $2.67
Market-to-Book Ratio (MTB) is calculated as (Market Price Per Share x Shares Outstanding) / Share Book Value.
MTB = ($8 x 200) / ($300 + $700 - $400)
MTB = $1,600 / $600
MTB = 2.67
The book-to-market ratio contrasts the market value of a corporation with its book value. Assets' value less liabilities' value equals the book value.
The market price of one share of a firm multiplied by the quantity of outstanding shares equals the company's market value.
To determine how a company's current market value compares to its book value, a financial valuation metric known as the Market to Book Ratio, often referred to as the Price to Book Ratio, is utilised.
The market value of all outstanding shares is represented by the stock price at the moment (i.e. (i.e., what the market decides the value of the company in terms of cost).
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smith company purchased inventory of $2,000 on account and uses the periodic system. the journal entry for the purchase would be:
The journal entry for the purchase would be: purchases: 2,000 debit, accounts payable: 2,000 credit
What is the periodic inventory system's journal entry?A few illustrations of periodic transaction journal entries. The inventory balance is updated once each period in a periodic inventory system. For this approach, typical journal entries are brief. It is safe to presume that you are utilising gross profit to record discounts and that both the sales and the purchases were made on credit.You record transactions in the accounting journal while using a periodic method. This diary displays the debits and credits for your business in a straightforward column format, organised by date. By debiting the purchase account and crediting accounts payable, you may record the purchase of inventory in a journal entry.When using the periodic system, purchases are recorded in the Purchases account as a debit (instead of Merchandise Inventory) and Accounts Payable as a credit.
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which of the following would not appear as a liability on the balance sheet? a. a note due to a bank b. salary due employees at year-end c. a labor contract d. accounts payable
A labor contract, of the following would not appear as a liability on the balance sheet. Thus, option (c) is correct.
What is a balance sheet?A balance sheet is a financial statement that lists an organization's assets, liabilities, and shareholder equity. One of the three important financial statements a company's evaluation will focus on is the balance sheet. It was the obligations using its current assets.
According to the important term of the accounting is the balance sheet. It was the included the bank, salary due to employees at year-end, accounts payable, suspense a/c and the other entries it was not to the included the labor contract.
As a result, the significance of the balance sheet are the aforementioned. Therefore, option (c) is correct.
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from the plato reading: explain how ideas about business might be influenced by fear (or hope) of an afterlife? remember, the afterlife (assuming there is one) is not necessarily a good place, in some superstitions it is a terrible place, a hell. how would this impact greed for profits, avarice, and even things like ambition?
In Plato's philosophy, the fear (or hope) of an afterlife can influence ideas about business in a number of ways. According to Plato, beliefs about the afterlife can influence human behavior by providing a framework for ethical decision-making and by shaping people's motivations and desires.
For example, if someone believes that their actions in this life will determine their destiny in the hereafter, they may be inclined to engage in unethical business practices such as greed or greed, because they fear that these actions may result in punishment in this world. hereafter. On the other hand, if someone believes that the afterlife will be rewarded for good deeds, they may be more motivated to engage in ethical business practices, as they hope to benefit from their good deeds in the hereafter.
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at year-end, a trial balance showed total credits exceeding total debits by $5,300. this difference could have been caused by:
At year-end, a trial balance showed total credits exceeding total debits by $5,300. This difference could have been caused by the balance of $6,020 in the Office Equipment account being entered on the trial balance as a debit of $720.
What is a trial balance?A trial balance is a list of all the general ledger accounts in a company's ledger. This list will include the name of each nominal ledger account as well as the balance of that nominal ledger account. Each nominal ledger account will have a debit or a credit balance.
An uneven trial balance is most likely caused by overstated or understated balances on the credit or debit sides. If the total credits exceed the total debits, it indicates that a debit entry was understated or a credit entry was overstated.
In this case, the debit was understated because the office equipment was not recorded at the proper amount, resulting in a $5,300 difference.
Therefore, the difference is caused due to the balance of $6,020 in the Office Equipment account being entered on the trial balance as a debit of $720.
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Your question is incomplete, but most probably the full question was,
At year-end, a trial balance showed total credits exceeding total debits by $5,800. This difference could have been caused by: Multiple Choice An error in the general journal where a $5,800 increase in Accounts Receivable was recorded as an increase in Cash. A net income of $5,800. The balance of $58,000 in Accounts Payable being entered in the trial balance as $5,800. The balance of $6,020 in the Office Equipment account being entered on the trial balance as a debit of $720
This type of business organization is relatively easy to start, and it is subject to much lighter regulatory and paperwork burden than other business forms. PartnershipSole proprietorshipCorporationHybrid organization
One person's business is not a legal entity. It doesn't have a life of its own aside from the business owner. The least complicated type of business structure is a sole proprietorship. Since the lone proprietor only only start operating their business, it is simple and affordable to get started.
What is business ?Making a living or earning money through the production, acquisition, and sale of items is referred to as doing business (such as goods and services). Additionally, it includes "any activity or enterprise undertaken for profit."
The owner of the business is responsible and liable for any obligations made by the business since the business entity is not legally distinguished from the owner by the use of a business name.
In the event that a firm accrues debt, creditors may seize the owner's personal property.
Corporate tax rates are not permitted in a firm structure. All business income is subject to personal taxation for the proprietor.
Although not by lawyers or government officials, the phrase is also frequently used colloquially to refer to a business, such as a corporation .
Hence, One person's business is not a legal entity. It doesn't have a life of its own aside from the business owner.
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between 1980 and 1985, policymakers in the united kingdom worked to lower the inflation rate. what would you predict happened to unemployment between 1980 and 1985?
Between 1980 and 1985 unemployment likely rose you predict happened to unemployment between 1980 and 1985.
When inflation is high, what does it mean?As a result, high inflation occurs when prices for goods and services are unusually high. As a result, consumers can save money on their purchases. Depending on the circumstances, even though a small amount of inflation can be beneficial, it can also harm individual finances.
What Causes Inflation?Inflation can be attributed to three main factors: Inflation caused by cost-push, demand-pull, and built-in factors. A situation known as demand-pull inflation occurs when there are not enough goods or services produced to meet demand, resulting in an increase in their prices. In contrast, cost-push inflation occurs when businesses are forced to raise prices as a result of rising production costs.
When workers demand higher wages to keep up with rising living costs, this results in built-in inflation, also known as a wage-price spiral. A self-reinforcing cycle of wage and price increases follows as a result, with businesses raising their prices to offset their rising wage costs.
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you have just arranged to purchase a $20,000 car. you will make a $5,000 down payment and finance the rest with a 48-month loan. apr is 12% (annual rate). what is your monthly payment?
To calculate the monthly payment, you need to determine the loan amount first, which is $20,000 - $5,000 = $15,000. Then, you can use the following formula:
M = P * (r(1 + r)^n) / ((1 + r)^n - 1)
Where:
M is the monthly payment
P is the loan amount ($15,000)
r is the monthly interest rate (12% ÷ 12 months = 1%)
n is the number of payments (48 months)
Plugging in the values, we get:
M = $15,000 * (1% * (1 + 1%)^48) / ((1 + 1%)^48 - 1)
M = $15,000 * (1.01^48) / (1.01^48 - 1)
M = $15,000 * 1.9788321524 / 0.9788321524
M = $15,296.03
Therefore, your monthly payment would be $15,296.03
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slapshot company makes ice hockey sticks. during the month of june, the company purchased $132,000 of materials. also during the month of june, slapshot company incurred direct labor cost of $113,000 and manufacturing overhead of $187,000. inventory information is as follows: june 1 june 30 materials $48,000 $45,000 work in process 65,000 63,000 required: 1. calculate the cost of goods manufactured for the month of june.
So, the ending work-in-process inventory for the month of June is $522,000.
To calculate the cost of goods manufactured (COGM) for the month of June, we need to add up the total costs incurred for materials, direct labor, and manufacturing overhead, and then subtract the beginning work-in-process inventory.
The formula for COGM is as follows:
COGM = Materials + Direct Labor + Manufacturing Overhead - Beginning Work-in-Process Inventory
Using this formula, we can calculate the COGM for June as follows:
COGM = $132,000 + $113,000 + $187,000 - $65,000
= $457,000
So, the cost of goods manufactured for the month of June is $457,000.
Next, we can calculate the ending work-in-process inventory by adding the cost of goods manufactured to the beginning work-in-process inventory:
Ending Work-in-Process Inventory = Beginning Work-in-Process Inventory + COGM = $65,000 + $457,000
= $522,000
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which life cycle model requires the most continuous dedicated time commitment from the business client, particularly during the requirements phase?
Rapid Prototyping is the life cycle model requires the most continuous dedicated time commitment from the business client, particularly during the requirements phase
Rapid prototyping is the quick manufacture of an actual part, model or gathering utilizing 3D computer aided design (CAD). The production of the part, model or gathering is generally finished utilizing added substance assembling, or all the more regularly known as 3D printing.
Rapid prototyping utilizing specific laser dissolving Where the plan intently matches the proposed completed item it is supposed to be a high devotion model, instead of a low loyalty model, where there is a noticeable contrast between the model and the end result.
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What were the company’s predetermined overhead rates in the molding department and the fabrication department?
Departmental overhead rate : Molding overhead rate = (10000/2500+1.4) = 5.4 per hour.
What is molding department and the fabrication department?Indeed, they are entrusted with the global responsibility of the product to be assembled: from the maintenance of the molds and presses to the management of cross-cutting processes such as manufacturing engineering and quality.
Fabrication services tend to be offered by a fabrication shop to produce products and parts. These include processes such as cutting, stamping, punching and forming, and will tend to be related to working in metals such as mild steel, stainless steel or aluminum.
It entails placing the plastic material, either in the form of pellets or sheet, into an open, heated metal mold. The mold then softens the material, forcing it to conform to the mold's shape as pressure is applied while it closes allowing the curing phase to take place.
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Cost of raw materials is debited to Raw Materials Inventory when the materials are put into production. bill for the materials is paid. materials are ordered. materials are received.
When the materials are received, the cost of the raw materials is deducted from the raw materials inventory. The term "raw materials" describes the fundamental inputs or resources that a business employs to create a finished good. These materials may contain tangible
Basic resources or unprocessed substances used as inputs in the manufacture of commodities are referred to as raw materials. These can take the shape of manufactured materials like plastic or metal or natural resources like metals, crops, or timber. Because it influences the price and quality of the finished product, the procurement of raw materials is a crucial step in the production process. You may either gather raw materials through mining or other forms of harvesting, or you can buy them from vendors. To prevent the depletion of natural resources and adverse effects on the environment and communities, it is crucial to assure the sustainability and moral sourcing of raw materials.
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based on a predicted level of production and sales of 15,000 units, a company anticipates total variable costs of $48,000, fixed costs of $21,000, and operating income of $81,600. based on this information, the budgeted amount of operating income for 12,000 units would be:
Based on a predicted level of production and sales of 15,000 units, a company anticipates total variable costs of $48,000, fixed costs of $21,000, and an operating income of $81,600. based on this information, the budgeted amount of operating income for 12,000 units would be $64,800.
To calculate the budgeted amount of operating income for 12,000 units, we first need to calculate the total cost of producing and selling 15,000 units. This can be done by adding the variable costs ($48,000) and fixed costs ($21,000) and then multiplying by 15,000 units. This gives us a total cost of $720,000. We then add in the operating income of $81,600 to get a total of $801,600.
Next, we need to calculate the total cost of producing and selling 12,000 units. This can be done by multiplying the variable costs ($48,000) by 12,000 units, which gives us a total of $576,000. We then subtract this from the total cost of $801,600 for 15,000 units, which gives us a total of $64,800.
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nasim invested \$1000$1000 in an account that pays 3% interest compounded annually. assuming no deposits or withdrawals are made, find how much money nasim would have in the account 15 years after his initial investment. round to the nearest tenth (if necessary).
The answer is 1557.96742 or 1558, it is the amount that Nasim would get after 15 years assuming no withdrawals are made.
What is an easy way to define investment?A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person invests in a good, they do not intend to utilize it as a source of immediate consumption, but rather as a tool for future wealth creation.
What is investing's primary goal?Investing is a successful approach to use your money and possibly increase your fortune. Your money may grow in value and outpace inflation if you make wise investment decisions. The power of compounding and the trade-off between risk and return are the main reasons investment has a higher growth potential.
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serena is the ceo of an online retailer. she and her immediate staff have decided to implement a company-wide marketing strategy to improve online sales in central and south america. what type of strategic approach is serena engaging in? multiple choice question.
The type of strategy that Serena is using here is what is called the option 1 Top-down strategic planning.
This is the type of organizational flow where information and other sorts of activities is made to flow from the top to the lower levels of hierarchy. Serena is the CEO and she has asked her subordinates to come up with a a strategy for the company. The strategy known as the "top-down approach" to management entails the decision-making process taking place at the highest level before being communicated to the rest of the team.
This approach is adaptable to the requirements of each group and can be used at the project, team, or even company level. Top predators control a population's structure in some ecosystems. An illustration of a top-down strategy is this one. Other ecosystems, on the other hand, are built from the bottom up.
DISCLAIMER The question is incomplete.
serena is the ceo of an online retailer. she and her immediate staff have decided to implement a company-wide marketing strategy to improve online sales in central and south america. what type of strategic approach is serena engaging in? multiple choice question.
Top down strategic planningpopulation approachecosystem planningRead more on the Top-down strategic planning here:
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true or false: the ppp adjustment is used in business to balance credits and debits at the end of the accounting cycle. true false question. true false
This statement is False. A PPP adjustment is short for a "purchasing power parity" adjustment, which is an adjustment to the exchange rate between two countries.
When the exchange rate between two countries is adjusted using the PPP adjustment, it takes into account the different purchasing power of the two countries. For example, a currency that has a higher purchasing power in one country than another will be adjusted upwards in exchange rate. This helps create a more accurate comparison between the two countries' currencies as well as their cost of living. This adjustment does not directly affect the end of the accounting cycle.
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financial statements can be prepared directly from a(n): multiple choice adjusted trial balance. source document. journal entry. cash sheet. asset sheet.
Financial statements can be prepared directly from an adjusted trial balance. Businesses utilise a trial balance.
Which is a list of credit and debit entries, to internally evaluate their double-entry accounting systems. The trial balance sheet, the income statement, and the cash flow statement are the three primary forms of financial statements.
Together, these three statements display a company's assets, trial balance, revenues, expenses, and cash flows from financing, investing, and operating operations. Financial statements that must be provided are the income statement, balance sheet, and statement of cash flows. Traders can use these three statements as educational tools to assess a company's financial health and quickly determine its underlying value.
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what were the company’s predetermined overhead rates in the molding department and the fabrication department?
The moulding department as well as the fabrication department have set overhead rates of 5.4 per hour.
What is called fabrication?Fabricated is the process of creating items using a combination of parts that are frequently standardised and one or more unique techniques. For instance, in steel fabrication, metal structures are created using a range of methods, such as cutting, bending, or assembling.
What is an example of fabrication?This same following are some illustrations of fabrication or falsification: producing data artificially when it should coming from a real experiment Unauthorized tampering with or fabrication of material, texts, images, audio, video, music, or other works.
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as of december 31, year 1, moss company had total cash of $163,000, notes payable of $86,300, and common stock of $53,100. during year 2, moss earned $43,000 of cash revenue, paid $23,500 for cash expenses, and paid a $3,700 cash dividend to the stockholders. required: a. determine the amount of retained earnings as of december 31, year 1. b.
The amount of retained earnings as of December 31, Year is $23,600.
Total cash = $163,000
Notes payable = $86,300
Common stock = $53,100
Cash revenue earned = $43,000
Cash expenses paid = $23,500
Cash dividend paid = $3,700
The accounting equation is as follows:
Assets = Liabilities + Stockholders' equity
cash = Notes payable + common stock + Retained earnings
$163,000 = $86,300 + $53,100 + Retained earnings
Retained earnings = $163,000 - $86,300 - $53,100
= $23,600
Retained earnings are how much benefit an organization has left over in the wake of paying all its immediate expenses, backhanded costs, personal duties, and its profits to investors. This addresses the part of the organization's value that can be utilized.
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an employee has signed up for a program through her employer. it allows her to put pre-tax money away from her paycheck in order to pay for out-of-pocket healthcare expenses. she may contribute up to $2850 (2022) per year. if she does not use all of the money during the current year, she forfeits it. what is this?
if she does not use all of the money during the current year, she forfeits it is this Flexible Spending Account.
Which insurance policy offers a gatekeeper to oversee the patient's medical care?The gatekeeper is the word used to describe the person in control of a patient's care when discussing health insurance. A gatekeeper is either given to or given the option of being chosen by anyone who has health insurance coverage through a managed care plan, more especially an HMO plan.
What alternatives does a provider have in terms of Medicare participation?There are three ways for doctors to take part in Medicare: Participation (PAR) contract to be signed. Election absenteeism (nonpark). Become a private physician contractor (opt out).
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A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.a. Trueb. False
a. True. The process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate is called discounting or present value calculation.
Discounted Cash Flow (DCF) analysis is a financial method used to estimate the present value of a future stream of cash flows. It involves calculating the value of a cash flow or series of cash flows based on a specific discount rate. The discount rate is used to reflect the time value of money and the opportunity cost of investing in an alternative investment.The main idea behind DCF analysis is that the value of a cash flow today is worth more than the same cash flow in the future. This is because money has a time value and can earn interest over time. By discounting future cash flows to their present value, DCF analysis takes into account the impact of inflation, market risk, and other factors that could affect the value of money over time.
DCF analysis is commonly used by investors, financial analysts, and corporations to evaluate the potential profitability of an investment or business venture. It is a useful tool for comparing different investment opportunities and for making informed investment decisions.
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two animals are considered members of different species if they __________.
Two creatures are considered to be of different species if they cannot mate and produce live, viable offspring. If they aren't able to interbreed & give birth to live, they are considered to be individuals species.
What makes a species' individuals unique?The concept of biological species strongly relies on interbreeding since it views a species as that being made of people from populations capable of interbreeding and producing viable offspring. In order to be considered "viable," the children have to be able to procreate.
Can people who belong to different species marry each other?Cross-breeding or mingling living things from two different species is the process of hybridization. These minglings produce hybrids as their offspring. Natural hybrids are widespread and play a big part in evolution.
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improving the quality or amount of factories and machines would involve an investment in .
Improving the quality or amount of factories and machines would involve an investment in Capital Goods
Improving the quality or amount of factories and machines would require an investment in capital goods, also known as physical capital. Capital goods are durable goods that are used in the production process, such as machinery, equipment, buildings, and infrastructure. Investing in capital goods can improve the productivity and efficiency of a company, enabling it to produce more goods and services at a lower cost. This can increase the company's competitiveness and help it grow and expand its operations. An investment in capital goods is a long-term investment, as these goods have a useful life of several years and are expected to generate returns over that period.
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true or false: if the growth rate in profits is less than the interest rate and both are constant, maximizing short-term profits is the same as maximizing long-term profits.
Maximizing current (short-term) earnings is equivalent to maximising long-term profits if the profit growth rate is less than the interest rate and both are constant.
How managerial economics is significant in profit maximisation of firm?Most importantly, it aids in establishing the market price of the product under discussion, which in turn serves as the foundation for the company that manufactures that product's earnings.
What is wealth and profit maximisation, and what are its goals?Profit maximisation, as the name suggests, relates to increasing the company's profit, whereas wealth maximisation seeks to raise the entity's value more quickly. Since profit serves as a benchmark for efficiency, maximising profit is the main objective.
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