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1 year ago

Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is:_____.

1 answer:

6 0

Ignoring income taxes, the annual net income amount used to calculate the Accounting Rate of Return is Average Annual Profit / Average Investment.

The Accounting Rate of Return (ARR) is the average net income which an asset is expected to generate divided by its average capital cost, and thus it is expressed as an annual percentage.

The ARR's formula is used to make capital budgeting decisions. It is used in situations where companies are deciding on whether or not to invest in an asset based on its expected future net earnings.

Hence, the Accounting Rate of Return is calculated by Average Annual Profit / Average Investment.

To learn more about Accounting Rate of Return (ARR) here:

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In the nation of Ruva, GDP is $15 trillion, consumption is $10 trillion, and government spending is $2.5 trillion. Taxes are $1

ELEN [110]

Answer:

Private Savings = $4 Trillion

Explanation:

Given that

GDP = Y = 15 Trillion

Taxes = T = 1 trillion

Consumption = C = 10 trillion

Recall that

Private Savings = Y - T - C

Therefore,

Private savings = 15 - 1 - 10

= $ 4 Trillion

6 0

3 years ago

In comparing money to a share of microsoft stock held by an individual, we can say:_______.

Anastaziya [24]

In comparing money to a share of Microsoft stock held by an individual, we can say, only the money is a means of payment, but both are stores of value.

In order to serve as a medium of exchange, money is very widely accepted as a method of payment. When comparing money to a share of Microsoft stock which is held by an individual, it can be said that money is a means of payment, but here the stock and money both are stores of value.

As a store of value, money is not unique as there are many other stores of value exist, such as stocks, land, works of art etc. Money may not even be the best store of value because it depreciates with inflation.

Hence, money is a means of payment, but together with money, stocks can also be stores of value.

To learn more about stocks here:

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7 0

2 years ago

In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Orio

zmey [24]

Answer and Explanation:

The journal entry to record the sales transaction is given below:

On April 10

Cash Dr $25,725

To Sales revenue $24,500

To Sales tax payable $1,225

(Being the sale is recorded)

Here cash is debited as it increased the assets and revenue & sales tax payable is credited as it increased the revenue & liabilities

3 0

3 years ago

Consumer ________ helps answer questions such as why people choose one product or brand over another, how they make these choice

neonofarm [45]

Answer: Behavior

Explanation: Consumer Behaviour is the way consumers respond to the purchase of a certain products and services, consumer behaviour is affected by various factors such as PRICE, QUALITY, QUANTITY,INCOME etc.

Certain consumers have specific interest in certain products or services, due to brand loyalty which has emanated from the consistent quality and other product features which they have enjoyed in such products.

6 0

3 years ago

Comparative balance sheets for Pina Colada Corp. are presented as follows. Pina Colada Corp. Comparative Balance Sheets December

DerKrebs [107]

Answer and Explanation:

The Preparation of cash flows for 2020 using the indirect method is shown below:-

Cash flow from Operating Activities

Net income $134,100

Add: Adjustments to reconcile net income

Add; Depreciation on property, plant and equipment $25,000 ($66,250 - $41,250)

Less: Increase in Accounts receivable ($8,300) ($84,350 - $76,050)

Add: Decrease in Inventory $7,750 ($180,500 - $188,250)

Less: Decrease in Accounts payable ($12,950) ($33,400 - $46,350)

Net cash provided by Operating Activities $145,600

Cash flow from Investing Activities

Add:Sale of Land $24,850

Less: Purchase of equipment ($49,800) ($249,600 - $199,800)

Net cash used in Investing Activities ($24,950)

Cash flow from Financing Activities

Issue of common stock $48,900

Less: Redemption of bonds ($50,700)

Less: Dividend paid ($68,300)

Net cash used in Financing Activities ($70,100)

Net increase in Cash and Cash Equivalents $50,550

Cash in the beginning of the period $22,400

Ending cash balance for the year $72,950

7 0

3 years ago