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3 years ago

What is the primary reason to issue stock?

Business

2 answers:

Lapatulllka [165]3 years ago

8 0

To raise money to grow the company

victus00 [196]3 years ago

3 0

Answer:

The answer is: B) To raise money to grow the company

Explanation:

Corporations issue stock to raise money and increase its equity. They use this "extra money" to fund investment projects that should make the corporation grow. For example, a retail chain can issue stock to raise money for building and equipping new warehouses.

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The net pension liability (PBO minus plan assets) is decreased by: Multiple Choice Service cost. Expected return on plan assets.

Mumz [18]

Service cost

Answer: Option A.

Explanation:

The net pension liability is the amount by which the liability of the pension increases the total pension assets. This increases the troubles of the people who are leading a retired life. The lower the rate of interest, more are the liabilities on the retired person's life.

On the other hand when the total pension assets are more than the total pension liabilities, then it i known as the net pension assets.

7 0

3 years ago

On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31

Tasya [4]

Answer:

April 1

Debit : Patent $1,500,000

Credit : Cash $1,500,000

December 31

Debit : Amortization $125,000

Credit : Accumulated Amortization $125,000

December 31

Debit : Impairment loss $6,000,000

Credit : Accumulated Impairment loss $6,000,000

Explanation:

Both the Amortization and Impairment loss reduce the value of assets. They are therefore expenses accounted in Income Statement.

Amortization : is the loss of value of an asset due to passage of time.

Amortization Expense = (Cost - Residual Amount) ÷ Useful Life

= ( $1,500,000 - $ 0) ÷ 12

= $125,000

Impairment loss : is the excess of the Carrying Amount of an Asset over its Recoverable Amount( Higher of Value in Use and Fair Value less Cost to Sell)

6 0

2 years ago

The following information has been provided by Hale Company: • Advertising expense $8,800; • Interest expense $3,800; • Rent exp

klemol [59]

Answer:

Hale’s total expenses in calculating operating income is $57000

Explanation:

Operating income represents profit realized in carrying out Hale Company primary activities

Only expenses incurred in are considered in calculation of Hale`s Operating Income

Cost of Sales

Cost of goods sold 22200

Administration

Rent expenses for store 18000

Depreciation 8000

Selling and distribution expenses

Advertising 8800

Total Expenses 57000

6 0

3 years ago

Maidenform Brands is a global intimate apparel company that designs, sources, and markets intimate apparel products under the Ma

Sedaia [141]

Maidenform and its major brands have strong brand equity.

Explanation:

Brand stocks refer to the added value of a single company for the same commodity. This renders one substance better than others. Brand loyalty renders a company better or worse than other brands.

Apple: Apple's market share best example.

Brand equity includes three basic components: the understanding of customers, negative or beneficial consequences and the resultant valuation.

Name equity funds also operate in the same market or field.

8 0

3 years ago

Excess cash is cash that is excess to the operations of a company and is considered "negative debt" because the cash could be us

Harrizon [31]

Answer:

True

Explanation:

Excess cash is a term used in the for the residual cash flow of operation. It is calculated after adding the non cash expenses in the net income of the company and deducting all the capital expenditures. This is the cash balance which is available for the reinvestment purpose and for distribution to the stockholders. This cash can also be used to reduce the gearing of the company and there is a cost attached to it if used for payment of loan, which is the rate or return from the reinvestment of these cash flows.

6 0

3 years ago

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