Explain how useful the price mechanism is in tackling the basic economic problem?

Q: Present Value of Bonds Payable; Discount Pinder Co. produces and sells high-quality video equipment...

A: Solution: Present value of bonds payable is issue price of bond computed using discount periodic int...

Q: For the basic accounting equation to stay in balance, each transaction recorded must affect less acc...

A: The correct answer for the above question is given in the following steps for your reference. 

Q: RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1, for P280,000. RR’s bal...

A: All assets, liabilities, equity, income, expenses, and cash flows of the parent business and its sub...

Q: The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-mon...

A: The question is based on the concept of the cost accounting

Q: Ramos Company provides the following (partial) production budget for the next three months. Each fin...

A: Given data: production budget- April 560 units May 690 units June 660 units

Q: For each employee listed, use both the wage-bracket method and the percentage method to calculate fe...

A: Tax is the means by which a government or taxing authority imposes or levies a tax on its citizens a...

Q: ng must be reduced to zero for a 30-day period during the year. On an equivalent revolving credit ag...

A: Here, The borrowed Amount is $600,000 Borrowing Limits is $1,000,000 Interest Rate of Line of Credit...

Q: The accountant at Fidel Trading has received the November 2010 bank statement. She immediately inves...

A: 1. Cash Book Date Account Titles Debit Credit  Balance Nov. 30 Beginning balance      $12,800...

Q: What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?

A: Since there is no revenue and expense of the acquire upto the date of acquisition.

Q: Kaizen Furniture has the following information in respect to coffee tables for 2011: Production spec...

A: A budget is prepared with a view to estimate the revenues or expenses of the entity over a specific ...

Q: Within our forecasting model we do not make "forecasting assumptions", but rather we make "forecasti...

A: Introduction Forecasting is a technique of making estimates and predictions that are useful in deter...

Q: The balance in the Prepaid Insurance account before adjustment at the end of the year is P7,200,  wh...

A: Annual insurance premium = P7,200 Monthly insurance premium = P7,200 / 12 = P600

Q: If P 10,000 is deposited each year for 9 years, how much annuity can a person get annually from the ...

A: First calculate the future value of annuity for 9 years as below: =FV(14%,9,-10000) => 160,853 No...

Q: Company anticipates production for its second quarter to be 19,200 units in April, 24,800 units in M...

A: Lets understand the basics. Budget is prepared by the management to estimate profit and loss for the...

Q: 3. Evaluate trends in the company's financial condition and performance and present your interpretat...

A: Trend analysis refers to an analysis of financial statements of the company which shows the change i...

Q: f there are accounts larger than overall materiality, does that mean that all those accounts needs t...

A: Solution Concept Materiality                 Materiality in an audit of financial statements as prov...

Q: Book Value Cash and Receivables P30,000 Inventory Plant Assets (net) Current Liabilities Market Valu...

A: In preparation of consolidated financial statements, parents corporations eliminate/discard the effe...

Q: Saved Help Save & Exit A machine distributor sells two models, basic and deluxe. The following infor...

A: Sales quantity variance = (actual quantity- budgeted quantity) x contribution per unit Contribution ...

Q: Many countries are adopting IFRSs although they are not under compulsion to do so. Some are however ...

A: IFRS refers to International Financial Reporting Standards. It consists of the globally acceptable a...

Q: 1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book an...

A: Consolidated financial statements are the summarized financial statements of an organization includi...

Q: Deferred expenses should be reported as O Expenses on the income statement O Income on the income st...

A: Deferred expenses : It refers to the cost incurred but this is recorded as expenses on a future date...

Q: Santos Company is preparing a cash budget for February. The company has $16,000 cash at the beginnin...

A: Cash budget means expected cash receipts and expected cash payment with opening and closing cash bal...

Q: 9) Omani Company reported equity of RO 130,000 on March 1. During the month, The Company generated r...

A: Formula: Ending equity = Beginning Equity + Additional investments + Net income - Dividends

Q: Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the fol...

A: Consolidation- The consolidated financial statement, which represents the financial status of both a...

Q: 2. Determine the unit product cost of each product according to the ABC system. (Do not round interm...

A: Using activity based costing, the overhead is applied tp different activities on the basis of differ...

Q: Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavo...

A: Volume variance = (actual units produced - budgeted production units) x budgeted overhead rate per u...

Q: Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a  percenta...

A: To arrive at a set overhead rate, the manufacturing overhead cost is divided by the activity driver....

Q: Forten Company's current year income statement, comparative balance sheets, and additional informati...

A: The cash flow statement is prepared to record the cash flow from various activities during the perio...

Q: Construct an analysis of the following transaction and use the table: Assets     = Liabilities     ...

A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger mean...

Q: what were JT’s annual sales and DSO?

A: current ratio = current asset/current liability 1.8=67500/current liabilities current liabilities = ...

Q: Using HIGH-LOW method, determine the following: 1. The total flexible cost formula? 2. The total ind...

A: Solution Concept Formula for high low method Variable cost per unit     =(cost at high point – cost ...

Q: Which of the following does not directly or indirectly affect the owner's Capital account? O Paying ...

A: Total assets means the resources owned by business and liabilities means amount to be paid to an out...

Q: The Robbins Company manufactures special purpose machines to order. On January 1, there were two job...

A: Job order costing is used for personalized products or services to fulfill some particular orders or...

Q: vealth of its sh ent in the long pays dividend

A: Dividend-paying funds, like individual stocks, will drop their share values by the amount of the div...

Q: The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Work In Proc...

A: In this Question, we have to find out the manufacturing under applied and overapplied overhead  When...

Q: At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital sto...

A: Solution A journal is a company's official book in which all business transaction are recorded in ch...

Q: Carolyn is helping to save for her granddaughter’s college fund. It will probably take 18 years befo...

A: Future value required (FV) = $150,000 Interest rate (r) = 6% Number of annual payments (n) = 18 Annu...

Q: for Marvin Company revealed the following: Cost Mar. 1 Beginning inventory 1,090 $7.14 Mar.10 Purcha...

A: Average cost per unit = Total cost of goods available for sale / Total no. of units available for sa...

Q: Explain what is Flow Cost Accounting, its nature.

A: Flow Cost Accounting is a part of environmental management accounting 

Q: Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:  ...

A: The Break-even point indicates that total units are to be sold by the business entity to recover its...

Q: Minnie Oil Co. produces three joint products: gasoline, kerosene, and naphtha. Total joint productio...

A: Total Joint Product Cost = 59500 Total sales = Units * Selling price per unit Total Weights as per u...

Q: Concept Integration. Review the definitions ofcurrent and fixed assets in Chapter 15 (see page413). ...

A: Introduction Current Asset and Fixed assets are most important part of a business, Current assets ar...

Q: The following data pertain to Dakota Division's most recent year of operations. Income $ 17,500,000 ...

A: Residual income=operating income-(Average invested capital*Minimum desired return)

Q: If you were interested in determining a company's ability to survive over a long period of time, you...

A: Ratio analysis is a method of computing and analyzing financial ratios to form a judgement regarding...

Q: Pharoah Company began operating on October 1, 2022. It prepares monthly financial statements. A tabu...

A: The question is based on the concept of Financial Accounting. Income statement is one of the financi...

Q: a.Identify the budget preparation approach used

A: An Estimate is the process of calculation or judgement of the value, number, quantity.It is a kind o...

Q: The following data pertain to Dakota Division's most recent year of operations. Income $ 4,350,000 5...

A: Sales Margin: The sales margin, also known as the contribution margin, is the amount of money a firm...

Q: A company needs to raise $20 million and is considering issuing 5-year bonds for this purpose. Assum...

A: The bonds are redeemed at their par-value with regular coupon payments but when bonds are not entitl...

Q: Method) Use the following information regarding the Newcastle Corporation to prepare a statement of ...

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash...

Q: hy do fraud examiners prefer documents over witnesses

A: Solution Concept \Fraud examiners                 Fraud examiners are the professional who examines ...

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.