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2 years ago

Distinguish between financial and cost accounting.

1 answer:

4 0

Cost accounting compiles the cost of raw materials, work-in-process, and finished goods inventory, while financial accounting incorporates this information into its financial reports (primarily into the balance sheet). ... Financial accounting personnel issue reports only at the end of a reporting period.

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A computerized spreadsheet program is useful for

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The answer wold be .. A

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3 years ago

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A firm has issued $25 million in long-term bonds that now have 9 years remaining until maturity. The bonds carry a 9% annual cou

tensa zangetsu [6.8K]

Answer:

40.43% debt financed; 6.89% after-tax cost of debt

Explanation:

In order to determine the portion of the firm financed by debt ,we need first of all ascertain the market value of the company

Market value of the firm=market value of equity+market value of debt

market value of equity=$35 million

market value of debt=$25 million*$950.12/$1000=$23.75 million

market value of firm=$ 23.75 million+$35 million= $58.75 million

portion of debt finance=market value of debt/firm's value

=23.75/ 58.75 =40.43%

The after tax cost =pretax cost of debt*(1-t) where t is the tax rate of 30%

pretax cost of debt is the same yield to maturity computed using rate formula in excel

=rate(nper,pmt,-pv,fv)

nper is the number of times the bond would pay interest which is nine times

pmt is the annual interest payment=$25 million*9%=$2.25 million

pv is the current price of the bond=$23.75 as shown above

fv is the face value of $25 million

=rate(9,2.25,-23.75,25)=9.86%

after tax cost of debt=9.86% *(1-0.3)=6.89%

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3 years ago

The following is an example in which the proposed method is applied to a fixed asset with an original cost of $248,000, an estim

Alexus [3.1K]

The purpose of accounting for depreciation is to allocate the cost of a tangible or physical asset over its useful life.

<h3>What is depreciation?</h3>

It should be noted that depreciation simply means the wear and tear of a product based in usage. Depreciation shows how much of an asset has been used.

The scope of generally accepted accounting principles aims to improve the clarity and consistency if the communication of financial information. The five principles include:

Revenue recognition.

Cost principle.

Matching principle.

Objectivity principle.

Full disclosure.

The president’s proposal is within the scope of generally accepted accounting principles. It should be noted that depreciation doesn't guarantee funds.

Learn more about depreciation on:

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1 year ago

Assume that Jack and Hal and Sophia enter into a valid contract for the sale of the restaurant and for the covenant not to compe

trasher [3.6K]

Answer:

3) Jack has anticipatorily repudiated the contract and Hal and Sophia can immediately consider the contract to be breached.

Explanation:

Anticipatory repudiation of a contract refers to one party breaching the contract by declaring that they do not intend to perform consideration. Anticipatory repudiation is a type of contract breach, and as soon as the other party is notified about it, it can decide to claim any type of compensatory damages that may result from the breaching.

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3 years ago

Match each event with the correct description of the company’s use of social media.

Nostrana [21]

The answers are as follows:

1. A company that makes cleaning products gives bloggers a new cleaning kit before the product is on the market: This company used social media to create consumer awareness about a new product.

2. A company hosts a sweepstakes on a social media site and gives the winners a lifetime supply of detergent: This Company used social media to increase brand loyalty.

3. An appliance company releases videos of its new, high-tech manufacturing facility: This Company used social media to give
consumers a peek into its operations

4. A fast food chain asks consumers to determine the next drink flavor using the hashtag #NEWDRINK: This Company used social media to allow consumers to be part of product development

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3 years ago

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