Answer:
The correct answer is option B.
Explanation:
The statement "There is no free lunch" means that no product is made for free. Production of any good or service requires resources. These resources are scarce and have alternative uses. So in order to produce any goods or services limited resources are used and its alternative uses are sacrificed.
Answer: A. deferred and recognized as income over the term of the lease.
Explanation:
In a sale-leaseback transaction, that is when a property is sold by a company and leased back, the property seller is the lessee and the property purchase is the lessor. In this case, a sale-leaseback will allow a company to sell an asset so that the company can raise capital, after which the asset can then be leader back.
When a company sells property and then leases it back, any gain on the sale should usually be deferred and recognized as income over the term of the lease.
Answer:
0.82
Explanation:
Calculation to determine the firm's asset beta
Using this formula
Firm's asset beta=Equity beta/(1+/D/E)
Let plug in the formula
Firm's asset beta=1.2/(1+0.47)
Firm's asset beta=1.2/1.47
Firm's asset beta=0.816
Firm's asset beta=0.82 (Approximately)
Therefore the firm's asset beta is 0.82
Answer:
The income elasticity of demand for dog biscuits is Option D: positive, and dog biscuits are a normal good.
Explanation:
'Income elasticity of demand' refers to the reaction of the demand in quantity for a good or service to that of change in income.
'Normal goods' are the goods that are related positively with income whereas 'inferior goods' are those goods which are related negatively with income. As the income increases, there is a rise in demand for the dog biscuits. This means the dog biscuits are normal goods. Income elasticity for demand is positive for Danita as it is because of the rise in income. Hence, Option D is the most appropriate.
Answer:
The correct answer is C)
Explanation:
A pledge in this context is a vow or a promise to make a donation or give something at a future date. It may be vocalized or communicated in writing.
The Financial Accounting Standards Board (FASB), sets out the criteria for recognizing a pledge or a promise as follows:
- Relevance— If the promise is important enough to make a difference in the users decisions, then it ought to be recognized
- Definitions—If the item satisfies the definition of a component of a financial statement, then it ought to be recognized;
- Dependability— When the pledge is based on a fact that can be recorded, verifiable, and neutral, then it can be recognized
- Measurability— if it allows for measurability, then it should be recognized
It is clearly stated that where the certainty or reliability of a promise or a vow is difficult that measure, it is better to decline from recognizing such a pledge.
Cheers!
