Answer: True
Explanation:
Cost-volume-profit analysis is refered to as the predictive tool that can be used for the determination of the profit consequences of the price changes, future cost changes, price and the volume of the activity changes.
It requires the management to classify all the costs as either fixed cost or variable cost with respect to production or sales volume within the relevant range of operations.
On January 1, 2015, the date of issuance, the entry is:
2015
Jan 1
Cash 1,000,000
Bonds Payable 1,000,000
On each January 1 for 5 years, beginning 2015 January 1 (ending 2020 January 1), the entry would be (Remember, calculate interest as Principal x Interest x Time):
Jan 1
Bond Interest Expense ($1,000,000 x 10% x 1) 100,000
Cash 100,000
On January 1 (5 years later), the maturity date, the entry would include the last interest payment and the amount of the bond:
Jan 1
Bond Interest Expense ($1,000,000 x 10% x 1) 100,000
Bonds Payable 1,000,000
Cash 1,100,000
Answer:
b. Lanham Act
Explanation:
Lanham Act -
According to this act ,
It governs the unfair competition , service marks and trademarks , is referred to as the Lanham Act .
Where Trademark , refers to the some symbol , logo , phrase or word , which act as an identity of the goods or services , and make the product to stand out from rest of the product .
Copying the same trademark is an illegal activity .
The Law was passed by Congress in year 1946 .
It is also called the Trademark Act 1946 .
Hence , from the given scenario of the question,
The correct option is b. Lanham Act .
Answer:
Present Value of savings = $33,7842.35
Explanation:
An annuity: A series of equal amount receivable or payable in the future for certain number of years is called an annuity. There are two (2) types of <em>annuity due</em> and <em>ordinary annuity.</em>
The present value of an annuity is the amount that needs to be invested today to generate a series of equal annual cash flows in the future.
The concept of present value is based on idea that $1 today is not the same as $1 tomorrow as the former can be invested to earn interest making it higher than the later. This called the time value of money.
To calculate the present value (PV) of an annuity, we discount the series of future cash flows by a required rate of return called the discount rate. The discount rate in this question is 8.50%.
Using the formula below we can can calculate the present value (PV):
PV = A × (1 - ((1+r)^(-n))/r)
where- PV- Present value, A- annual cash flow, n- number of years, r- interest rate
= 66,000 ×( 1-(1 +0.085)^(-7))/0.085)
=66,000 × 5.1188
Present Value = $33,7842.35
