Answer:
The statement in the question is true (The manufacture is trying to alleviate the financial Risk)
Explanation:
<u>Buying a product that offers a money-back guarantee or offers a warranty helps to ensure the consumers peace of mind.The Money back guarantee may allow the purchaser to get their money back in case the product does not work as expected.</u>
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<u>The Money Back Guarantee as as a guarantee that the product will perform as expected. </u>
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Answer:
Sale of Merchandise for Cash
Revenue (Shareholders Equity) = Increase $107500
Cash (Asset) = Increase $107500
Liabilities = No Effect
Cost of Goods Sold
Shareholders Equity = Decrease $ 53750
Inventory (Asset) = Decrease $53750
Liabilities = No Effect
Explanation:
Sale of Merchandise for Cash
Recognition of Revenue increases Profit in Income Statement and consequently increases shareholders equity.
Assets of Cash are increasing to depict inflow of economic benefits
Cost of Goods Sold
Cost of Goods sold represent outflow of economic benefits
Assets of Inventory are decreasing
The right answer for the question that is being asked and shown above is that: "Production process " Any process that comes ito physical contact with the product that will be delivered to an external customer is <span>Production process </span>
Answer: 6.23%
Explanation:
The expected return is a weighted average of the expected returns given the different economic conditions.
Probability of recession economy = 1 - 55% - 20 % = 25%
Expected return ;
= (14.8% * 25%) + (6.3% * 55%) + (-4.7% * 20%)
= 0.037 + 0.03465 -0.0094
= 0.06225
= 6.23%
Answer:
The correct answer is 20%.
Explanation:
According to the scenario, the given data are as follows:
Stock price one year ago = $20
Current stock price = $24
Dividend paid = $3
So, we can calculate the rate of return from capital appreciation by using following formula:
RR from capital appreciation = Capital Appreciation ÷ Start Price
Where Capital Appreciation = $24 - $20 = $4
So, by putting the value we get,
RR from capital appreciation = $4 ÷ $20
= 0.2 or 20%