The return of equity will increase. Businesses can finance
themselves with debt and equity capital. By aggregating the quantity of debt
capital kin to its equity capital, a company can increase its return on equity.
The way in which rising financial leverage increases ROE is a
little less instinctive. One way to think about it is that if a business
adds debt, its assets increase for the reason that its
cash inflows from the debt issuance and so does its
entire debt.
Answer:
d.The same person that prepares the check should also record it in the proper journal.
Explanation:
Internal control is essential so that any frauds shall not take place. Also that the primary condition is that all the work shall be segregated in different stages, to different people so that there is a check on the quality of work done by the each person.
Thus, when a check is to be issued then the same shall be recorded by some different person, so that the person recording can verify is the check amount and party accurate and not fraud.
Answer:
1 and a half months worth of depreciation
Explanation:
The advantage of starting to depreciate an asset purchased on December is that next year you will be able to depreciate it for a full year under MACRS. Generally, when you purchase an asset, you have to use the half year convention and your depreciation expense for the first year will be low compared to the second year. But if you start depreciating your asset in the current year, even if you purchased it on December and the depreciation expense is not that significant, the next year you will be able to depreciate it at the second year rate.
Answer:
Explanation:
Given
<u>Cost</u>
per mouse pad
Revenue
Solving (a): The cost function
Let the number of mouse pad be x and the cost function be c(x).
Solving (b): The revenue function
Represent this with r(x)
Solving (c): The break-even point
This is the point where r(x) = c(x)
So, we have:
Collect Like Terms
Solve for x
Answer:
Annual depreciation= $28,940
Explanation:
Giving the following information:
Kansas Enterprises purchased equipment for $78,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $6,150 at the end of five years.
Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]
Annual depreciation= 2* [(78,500 - 6,150)/5]= $28,940
