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Maurinko [17]
3 years ago
11

The going concern assumption of GAAP implies that the firm: __________

Business
1 answer:
yaroslaw [1]3 years ago
3 0

Answer:

correct option is (a)

Explanation:

  • Anxiety is a financially stable accounting term for a company to fulfill its obligations and continue its business for the future.
  • So, One of the key assumptions under GAAP is the going concern assumption that will continue to operate and that all assets should be recorded at their cost rather than at their liquidation value
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Sauer Food Company has decided to buy a new computer system with an expected life of three years. The cost is $300,000. The comp
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Answer:

 

Explanation:

From the given information;

Suppose the interest rate is constant. then at 10% three-year loan;

The total interest at 10% will be:

= $300000 × 10% × 3years

= $90000

Aso, 8% one year loan with rollover will be total interest at 8%:

= $300000 × 8% × 3 years

= $72000

Savings in interest of Sauer Food Company = $(90000 - 72000)

= $18000

Suppose short-term rates change, then for the first year, we will have:

= 300000 × 0.1

=  $30000

second year will be = 300000 × 0.13

=$39000

third year will be= 300000 × 0.18

=$54000

As such, the total rate of the variable loan = $30000 + $39000 + $54000

= $123000

However, the fixed rate at 10% three year loan is equal to = $90000

As such, the additional total interest cost  = $(123000 - 90000)

= $33000

3 0
3 years ago
The graph below shows the value of a $100 deposited into three different accounts over a period of 20 years. Which of the lines
DiKsa [7]

Answer: D. Green

Explanation: Because compound is the biggest interest rate

7 0
3 years ago
Read 2 more answers
Which of the following is part of the professional support services area?
Rama09 [41]
I'd say it's 4 because school social workers support students.
7 0
3 years ago
Assume that a currency's spot and future prices are the same, and the currency's interest rate is higher than the U.S. rate. The
Andrei [34K]

Answer:

put upward pressure on; put downward pressure on

  • The actions of U.S. investors to lock in this higher foreign return would PUT UPWARD PRESSURE ON the currency's spot rate and PUT DOWNWARD PRESSURE ON the currency's futures price.

Explanation:

If both the spot and the forward price of a currency are the same, it means that it should be worth the same today than in the future. If you can earn higher interest by investing in that foreign currency, then investors will start purchasing higher amounts of the foreign in order to invest and gain higher rates.

Since the demand for the foreign currency increases, that put upward pressure its current price. Simply more investors will want to invest in that currency. While that happens right now, the market will tend to adjust to correct this arbitrage, and the way this can be adjusted is by lowering the future price of the currency. That puts downward pressure on the forward rate.

3 0
3 years ago
Comprehension and speed are the two most important traits in reading for business. please select the best answer from the choice
OLga [1]

Answer:

true

Explanation:

But accuracy would be a better option speed is good, so you are always on task and comprehension for big words.

3 0
2 years ago
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