Answer:
b. $5,360
Explanation:
Using a financial calculator with CF function, find the Net present value (NPV) of this projects cashflows;
Initial investment; CF0 = -20,000
Yr 1 cash inflow; C01 = 8,000
Yr 2 cash inflow; C02 = 8,000
Yr 3 cash inflow; C03 = 8,000
Yr 4 cash inflow; C04 = 8,000
and annual interest rate; I/Y = 10%
then compute net present value; CPT NPV = 5,358.924
Therefore, the NPV will be closest to $5,360
Ngl I definitely think this is true :) if not then FRICKKKK I’m sooo sorry for getting it wrong
Answer:
Contingent liabilities refer to those obligations which might arise in the near future based upon the happening or non happening of a certain event and it's outcome.
Such liabilities are recorded if there is likeliness of an event happening and when they can be reasonably quantified and estimated.
In the given case, the automobile manufacturer will probably be required to recall it's products. The amount can be estimated.
In such cases, such expense is to be recognized in the income statement and at the same time a liability for such expenses needs to be created in the balance sheet. Product recall refers to replacement of defective products by the manufacturer. It is similar to a warranty.
Reporting on Dec 31 would be as follows,
Warranty Expense A/C Dr. $2.5
To Warranty Liability $2.5
(being product recall liability for for 2.5 million created)
According to your text, sales promotions such as free smples and point-of-purchase displays are designed to build. are called "Short-Term sales."
<h3>What is short term sales?</h3>
An property or stock that the seller doesn't own is sold in a short sale. The typical transaction involves an investor selling borrowed securities in expectation of a decrease in price; the seller is then obligated to deliver the same number of shares at a later date. A seller, on the other hand, holds a long position in the stock or asset.
Some characteristics of short term sales are-
- A stock that its an investor believes will lose value in the near future is sold short.
- A trader borrows shares on margin for a set length of time to complete a short sale, selling the stock when the price is attained or the period of time has passed.
- Because short sells restrict gains while amplifying losses, they are regarded as dangerous trading techniques. Additionally, they come with regulatory hazards.
- To be successful, short sales need to be timed almost perfectly.
To know more about short-term investment, here
brainly.com/question/7905571
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Answer:
a. Cash and accounts payable
Explanation:
The journal entry to record this given transaction is shown below:
Equipment A/c Dr $5,000
To Cash A/c $1,000
To Account payable A/c $4,000
(Being the equipment is purchased for cash and on account)
Since the equipment is purchased for $5,000 that increase the asset account and the cash is paid for $1,000 so it would be credited plus the remaining amount is given on credit basis so we credited the account payable account
