Answer:
Explanation:
Expected Return stock fund () = 14% = 0.14, Expected Return bond fund () = 5% = 0.05, Standard Deviation stock fund () = 34% = 0.34, Standard Deviation bond fund () = 28% = 0.28, correlation (ρ) between the fund returns is 0.0214
<u>Answer</u>:
D) For MACRS-GDS an estimate of the salvage value is required.
This statement is not true about depreciation
<u>Explanation</u>:
The term Depreciation refers to the decrease in the value of an asset over time. It is not a part of cash flow and does not involve any cash. To calculate the depreciation of an asset, it must have a life of more than one year.
According to this system, the depreciation occurs one year higher than the classified period, for example, a 5-year property will depreciate in 6 years. The aspect which is not considered while calculating the depreciation under MACRS-GDS is the salvage value of the property because it depreciates to zero and the rates sum-up to 100%.
Therefore, alternative D is not true about depreciation in MACRS-GDS.
<u>Answer:</u>
<u>A. Wide variations in capital structures exist both between industries and among individual firms within given industries. These differences are caused by differing business risks and also managerial attitudes.</u>
<u>Explanation:</u>
Put simply, all the other options aren't factual statements which lack reliability. However, it is generally accepted that not all companies would have the same capital structures (eg either equity capital or debt capital).
So, it is accurate to say that, wide variations in capital structures exist both between industries and among individual firms within given industries.
Answer:
C) Debit Cash $2,750
Credit Accounts Receivable $2,750
Explanation:
When payment is received in respect of services rendered or goods sold in the past periods, the accounting rule is to debit cash or bank as the case may be and credit account receivable for the amount received. This is necessary because in period when transaction took place, revenue has been credited and account receivable debited.
Answer:
The correct answer is letter "B": Encouragement to join company-sponsored weight-loss program.
Explanation:
Persuasive messages have the objective to change the audience's behavior in a certain manner. The <em>Marketing Department</em> of a firm uses persuasion as the main tool to generate action in potential consumers so the good or service being offered by a company can be acquired.