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3 years ago

When the cost method is used to account for a stock investment the carrying value of the investment is affected by

Business

1 answer:

Goshia [24]3 years ago

3 0

Answer: b. neither the earnings nor the dividends of the investee.

Explanation:

When the cost method is used to account for a stock investment, it means that in the books, the stock is to be recorded at the price it was purchased for.

This means that even if earnings and dividends accrue on the stock, it is not to change in value but should stay being recorded at the price it cost to acquire.

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The AFN equation assumes that the ratios of assets and liabilities to sales remain constant over time. However, this assumption

Vera_Pavlovna [14]

Answer:

The answer is A True

Explanation:

AFN which is "additional funds needed" is a concept used commonly in business looking to expand operations and influence. Since a business that seeks to increase its sales level will require more assets to meet that stated goal, some provision must be made to accommodate the change in assets. AFN is a way of calculating how much of new funds will be needed, so that the firm can realistically look at whatever or not they will be able to generate the additional funds and therefore be able to achieve the higher sales level.

Economies of scale are cost advantage reaped by companies when production becomes efficient. Firms can achieve economies of scale by increasing production and lowering cost. This does not involve calculating of new funds needed for a realistic expansion of the firm.

Lumpy assets are assets that cannot be acquired in small increments but must be obtained in large, discrete units.

Excess Capacity indicates to a situation in which the demand for a company's goods and services is less than its production capacity. This situation can arise in any firm during the low point in a seasonal industry, where capacity is maintained to match the peak part of the season.

A constant ration can not be meet in this condition of economies of scale, lumpy assets, and excess capacity as these conditions can not be used in raising funds or additional funds that are needed by the industry in its expansion.

8 0

3 years ago

Were did west African slave traders get their slaves to sell to Europeans

Nimfa-mama [501]

Answer:

I don't know but where can i buy

Explanation:

3 0

3 years ago

An investment banker has recommended aâ $100,000 portfolio containing assetsâ B, D, and F.â $20,000 will be invested in assetâ B

soldier1979 [14.2K]

Answer:

β = 1.45

Explanation:

The beta of the portfolio is defined as an average of the betas (β) of each asset within the portfolio weighted by their respective invested amounts (A):

$A_{P}* \beta_{P} =A_{B}* \beta_{B} +A_{D}* \beta_{D} +A_{F}* \beta_{F} \\\beta_{P} =\frac{20,000 * 1.5 + 50,000*2.0 +30,000*0.5}{100,000}\\\beta_{P} = 1.45$

The beta of the portfolio is 1.45

8 0

3 years ago

You and your friends want to buy a condo at the beach to time share. Each of you has single peaked preferences with a most prefe

Gemiola [76]

Answer:

Individual Cost Shares to be enjoyed

Mabel $10,000 10000 / 150000 = 6.67%

Gertrude $20000 20000 / 150000 = 13.3%

Myron $30000 30000 / 150000 = 20%

Wilber $40000 40000 / 150000 = 26.6%

You $50000 50000 / 150000 = 33.3%

Explanation:

peaked preferences

Most preferred value to spend :

Mabel = $10,000

Gertrude = $20,000

Myron = $30,000

Wilber = $40,000

you = $50,000

cost of Condo = $150,000

<u>Implementing a Uniform rule mechanism to allocate costs and shares </u>

The uniform rule ; ∑ j∈I Uj (p) = Ω.

where Ω = fixed amount of resource

hence the summation of all allotment should = Ω ( $150,000 )

Number of friends = 5

cost of condo = $150,000

If divide equally each person will have to pay ; $150,000 / 5 = $30,000

Total money to be spent by friends = 10,000 + 20,000 + 30,000 + 40,000 + 50,000 = $150,000

Individual Cost shares to be enjoyed

Mabel $10,000 10000 / 150000 = 6.67∑%

Gertrude $20000 20000 / 150000 = 13.3%

Myron $30000 30000 / 150000 = 20%

Wilber $40000 40000 / 150000 = 26.6%

You $50000 50000 / 150000 = 33.3%

∑shares ≈ 100% ( 150,000 )

6 0

3 years ago

In the United States, sole proprietorships and partnerships outnumber corporations.a. Trueb. False

lianna [129]

Answer:

a. True

Explanation:

The sole proprietorship and partnerships outnumber corporations in United States but they net fewer sales and less income than corporations, individually and when combined.

8 0

3 years ago