Answer:
D) $2,900.
Explanation:
The computation of the net income is shown below:
= Revenue on account - Expenses for the period
= $5,000 - $2,100
= $2,900
To determine the net income we subtract the expenses incurred for the period from the revenues so that the accurate amount could come.
This net income would be reflected at the time of preparing the retained earning statement
Answer:
ACME Drilling should record impairment loss of $6.9 million
Explanation:
According to GAAP, when the fair value of an asset is below the net carrying amount of that asset ( Asset's historical cost - Asset's accumulated depreciation or the net book value of the asset), the Company should record it as asset impairment loss.
In ACME's case, the net book value is $18.6 million while the estimated fair value is only $11.7 million meaning that the platform is actually worth less than it is recorded on ACME's book. Thus, an impairment loss of $6.9 million should be recorded ( $18.6 million - $11.7 million) to realize the fair value of the oil-drilling platform.
The sum of projected sum of future cash flows in this case is not suitable to be used to determine the oil-drilling platform because it has not been discounted to the present value amount, and also, it is not appropriate under GAAP.
The economy has shifted away from industrial production and many of our most important<span> goods and services are transferred, created, and exchanged via online networks.
The existence of internet itself actually threatened the existence of retail stores. For example, Thousands of bookstores all over the world since Amazon started selling books online.</span>
Answer:
The description is summarized in the clarification portion below, and according to the particular context.
Explanation:
- Throughout the banking as well as the financial system of the United States of America, the Fed would be a leading organization. The Fed has dual inflation stabilization goals and maximum jobs. For some of these two Federal Reserve goals, there seems to be a clear compromise. The equilibrium between any of these two must be created. The US economy is running well above potential output, but in such a situation, the Fed should keep a watchful eye on a future current price increase, or market stabilization would have to be a goal.
- Therefore, because the Fed would be a monetary policymaker, it would rely more on inflation stabilization. Jobs factors may also be tackled by monetary policies. In other words, the Fed should give great importance to market stability instead of full jobs.
- The Fed becomes currently operating independently and therefore its activity is free of political intervention, so it must function like this. This wouldn't be the best measure to shut the Fed. Since the Fed figured prominently in mitigating the detrimental consequences of the 2008-2009 crisis. With the aid of the Fed, long term financial crises or inevitable crises will be stopped comfortably.
Answer:
9.6%
Explanation:
The ROE is 12 %
The payout ratio is 20%
The first step is to calculate tnr retention ratio
= 1-(20/100)
= 1-0.2
= 0.8
The sustainable growth can be calculated as follows
= 12×0.8
= 9.6
Hence the sustainable growth rate is 9.6%