Answer:
Option A is the correct answer,no adjustment is needed.
Explanation:
When related companies sell to each other,the sales transaction is not sales in actual sense,as it is likened to the left hand of an individual exchanging cash with the right hand,in other words, the cash is still owned by the same person.
The same concept is applicable to subsidiaries and parent,the sales recorded from a group perspective is when they sold to external third parties.
When sales happen between related companies, a provision for unrealized profits has to be made to the tune of inventory purchased from related companies not yet sold externally,as the whole of the goods have been to third parties, no such provision or adjustment is required.
Answer:
Current price of the bond $928.95
Explanation:
Th price of the bond is the same as the present value of the bond today which is given by the below excel formula:
=pv(rate,nper,pmt,fv)
rate is the yield to maturity on the bond of 8.6%
nper is the tenor of the bond which is 25 years
pmt is the coupon interest payable annually by the bond which is 7.9%*1000=79
fv is the future value repayable on redemption which is 1000 euros
=pv(8.6%,25,79,-1000)
pv=$928.95
The current price of the bond is $928.95 as computed using the present value formula in excel
Answer:
E. is accurately described by all of the above
Explanation:
- The main difference is that the entrepreneurs took at the big picture and are more ideal, innovative and risk-takers and focuses more on the startups and growth and spread of business and attempts to make profits
Answer:
c. Internal benefits are less than external benefits
Explanation:
Lets first understand what a positive externality is. Positive externality is the effects of an activity that has greater and/or additional benefits to the society as a whole as compared to the benefits enjoyed by the individual responsible for creating such a positive impact. One of the common examples of positive externality is getting education, when we get education that provides us benefits on a personal level but it also helps you reach to a position where you can educate others and/or the society in general. This means that educating yourself not only benefits you but also has a positive influence in the society.
Similarly, if you walk to work every day, this will make you more healthy and will reduce congestion in the city and benefit every body else as well.
Answer:
Here all the options given in the question are correct .
Explanation:
Managerial accounting is mainly done by the managers or management to prepare report for the internal users and with the help of such accounting , manager would be able to perform the planning, controlling and decision making activities. This accounting helps manager by providing useful data and estimates as soon as possible which would help in decision making. Managerial accounting does follow GAAP and IFRS but it is not mandatory for it to follow and also it is not compulsory for a company to perform managerial accounting .
