France stands as one of the world's leading economic powers, possessing large agricultural, industrial and service sectors. France operates a mixed economy that combines capitalist and socialist characteristics. Capitalism involves private ownership of capital and other means of production. Under socialism, the government directs economic activity and owns all or part of most industries. Despite extensive reforms over the years that have reduced government intervention in the economy, the French government still exercises great control over the economy, owning shares in many of the country's largest companies.
Quick Facts:
How does the French anti-globalization movement make sense given their culture and economic system? Why?
In: Economics
This problem summarizes typical transactions engaged in by not-for-profit organizations.
The American Association for Freedom, a political think tank, was recently established. During its first year of operations it engaged in the following transactions and was affected by the following events (in summary form):
1. It received a $10,000,000 endowment contribution, all in stocks and bonds.
2. It received $3,000,000 in additional contributions, all restricted for its educational programs and $2,300,000 in unrestricted contributions.
3. It acquired $800,000 in furniture, fixtures, and equipment, all of which have an expected useful life of 10 years.
4. It recognized depreciation on the furniture, fixtures, and equipment, purchased earlier in the year.
5. It spent $2,400,000 on educational programs.
6. It earned $300,000 in interest and dividends on its endowment investments.
7. By year-end the value of its investments had appreciated by $600,000.
8. It incurred $1,300,000 in administrative expenses.
9. Near year-end it received a pledge of $4,500,000, to be fulfilled in three annual installments of $1,500,000 beginning in one year. The Association determined that a discount rate of 6 percent was appropriate.
a. Prepare journal entries to record these events and transactions. Be sure to indicate the fund-type in which the entry would be made. Use the terms without donor restrictions or donor restrictions in each journal entry.
In: Accounting
1) Match the terms with their correct definitions.
___ Organization
___ Manager
___ Managing
___ Management process
___ Human resource management
a) Someone who is responsible for accomplishing the organization’s goals
b) Consists of people with assigned roles who work together to achieve goals
c) The five basic functions of planning, organizing, staffing, leading and controlling
d) To perform five basic functions: planning, organizing, staffing, leading and controlling
e) Acquiring, training, appraising, and compensating employees
2-Match the terms with their correct definitions.
___ Planning
___ Organizing
___ Staffing
___ Leading
___ Controlling
a) Getting others to get the job done, and motivating
subordinates
b) Selecting employees, and setting performance standards
c) Giving each subordinate a specific task; establishing
departments
d) Establishing goals and standards, and developing rules and
procedures e) Setting standards, and taking corrective action as
needed
3- Which is NOT what a manager should know about? a) Marital
status and near-future vacation plans
b) Equal opportunity and affirmative action
c) Employee health and safety
d) Handling grievances and labor relations
4- Does Human Resource Management help improve profits and performance? why if yes ?
5- Should human resource management be involved in ethics? Why?
In: Accounting
Buyers determine demand while sellers determine supply. Both laws of supply and demand establish market forces that make economies work to search for their market equilibrium. The impact of COVID-19 is an unprecedented event that affects the global economy. In the article, the overall retail sales dramatically dropped by 34.8%, with jewellery and luxury goods drop of 67% but supermarkets increase of 12%, in the first five months of 2020. However, online-based consumption, like demand for food delivery, online education (Zoom), stay-at-home activities and online grocery shopping surged dramatically since the outbreak of pandemic.
1) Based on your learning in Microeconomics, explain how COVID-19 has a favourable and an adverse impact in today’s situation, with aids of diagram “Market Forces of Supply and Demand” and “Elasticity”.
2) Illustrate with TWO real examples (one favourable and one adverse impact) in the retail industry in Hong Kong or Mainland China or your country to show your understanding and application of supply and demand as well as elasticity.
3) Principle 6 of Economics states, “Markets are usually a good way to organize economic activity”. Hopefully COVID-19 will end some time in the near future. Predict how the retail industry would become in the economy with the aftermath of the pandemic.
In: Economics
You are the manager in charge of the audit of Burning Limited (“Burning”). Burning is a private company engaging in the production of furniture products. The management of Burning is considering the listing of the company to the Hong Kong Stock Exchange (“HKEX”) in the near future and has asked your accounting firm to submit a proposal for appointment as Burning’s reporting accountant.
The management has asked your accounting firm to include the following clauses in the proposal:
Your firm agrees to offer a flexible fee structure of HK$4,000,000, payable in four equal instalments with the last instalment only payable upon successfully listing the shares of Burning to the HKEX;
Your firm agrees not to charge for any additional work that might be found necessary during the listing exercise;
Your firm agrees to participate in the Burning road show with the sponsors, and assist the management to respond to questions from institutional investors on Burning’s financial matters; and
When conducting the exercise, your accounting firm will work on information to be provided by the management of Burning and will complete the work as quickly as possible with minimal questions / issues to be raised.
Required:
Discuss what “independence of mind” and “independent in appearance” are.
Comment on the potential issues regarding your firm’s proposal to Burning serving as the reporting accountant, and how you would explain to the management of Burning that the proposal has to be revised.
In: Accounting
The consolidated financial statements of EFGH Ltd and OP Ltd were presented to the Board. The Board is alarmed that the economic entity’s balance sheet (consolidated balance sheet) shows a deferred tax balance when the accounts for EFGH Ltd had no deferred tax asset or deferred tax liability. EFGH management is also planning to acquire another entity XYZ Investments Ltd in the near future. Management pointed out to the Board that on the acquisition, the financial results of this new subsidiary (XYZ Investments Ltd) will also be consolidated in the economic entity financial statements. One of the Board members noted that the new business to be acquired by EFGH Ltd is an investment company. Its financial statements should not be consolidated because it is involved in the investments industry, whereas all of the other companies in the economic entity are involved in the retail industry.
Required: As the financial accountant you are requested to prepare a response to the following questions:
(a) Why does the economic entity have a deferred tax balance?
(b) Should the financial statements of proposed acquired business, XYZ Investments Ltd, be consolidated into the economic entity and why?
(Please note that in your response you must make reference to relevant paragraphs of the Accounting Standard and/or AASB Framework and to other sources of material(Australian), 600 words.)
In: Accounting
Typically, if investors expect to stay in the house or will pay off the loan in the near future (say, in less than 5 years), should they pay the discount points in exchange for lower monthly payments? (Hint: see the real world application example that we went through in class)
A. Yes, they should pay the discount points
B. No, they should not pay the discount points
19. During the early years of an amortizing mortgage loan, the lender applies
A. Most of the monthly payment to the outstanding principal balance.
B. All of the monthly payment to the outstanding principal balance.
C. Most of the monthly payment to interest on the loan.
D. All of the monthly payment to interest on the loan.
E. The monthly payment equally to interest on the loan and the outstanding principal balance.
What is loan servicing?
A-Loan servicing is the process of the lender making a loan to a borrower. This term
is only used in regards to mortgages.
B-Loan servicers are the people in an investment bank who packaged together many
mortgages into an MBS for selling to investors.
C-Loan servicers did the pre-qualifying of potential borrowers as commercial banks
could not keep up with the demand.
D-Loan servicers collect monthly payments and manage the paper work associated
with a loan, usually keeping a portion of the payments received.
In: Finance
For our discussion, you will address one of three slightly different versions of the case of a ball falling to the base of a 50.0 m tall building.
Freefall Case 1: Near the edge of the building the ball is thrown upward with an initial velocity of 14.7 m/s, at time t = 0.00 s.
Additional question: If downward were to have been chosen as the positive direction, how would this affect the values of displacement, velocity, and acceleration given in the description of the case study? Comment on the dependence of physical results, if any, on the choice of the positive direction chosen by observers.
In: Physics
Sunland Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $5,000.
The company produced the following information from aging its
accounts receivable at year end. Complete the aging schedule and
calculate the total estimated uncollectible accounts.
| Number of Days Outstanding | ||||||||||
| Total | 0–30 | 31–60 | 61–90 | 91–120 | ||||||
| Accounts receivable | $580,000 | $330,000 | $120,000 | $80,000 | $50,000 | |||||
| Estimated % uncollectible | 2% | 6% | 10% | 30% | ||||||
| Estimated uncollectible accounts | $ | $ | $ | $ | $ | |||||
Record the bad debt adjusting entry using the information determined in part (a).
|
Account Titles and Explanation |
Debit |
Credit |
| (To record estimate of uncollectible accounts.) |
In the following year, $22,000 of the outstanding accounts
receivable is determined to be uncollectible. Record the write off
of the uncollectible accounts.
|
Account Titles and Explanation |
Debit |
Credit |
| (To record writeoff of accounts receivable.) |
The company collects $3,500 of the $22,000 of accounts that was
determined to be uncollectible in part (c). The company also
expects to collect an additional $1,000. Record the journal entry
(or entries) to restore the accounts receivable and the cash
collected. Collection of the $1,000 is expected in the near
future.
|
Account Titles and Explanation |
Debit |
Credit |
|
(To reverse write off.) |
||
|
(To record collection of previously written off account.) |
In: Accounting
CORPORATE VALUATION
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $4 million, $7 million, $8 million, and $13 million. After the fourth year, free cash flow is projected to grow at a constant 8%. Brandtly's WACC is 9%, the market value of its debt and preferred stock totals $66 million; and it has 20 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
In: Finance