Answer:
A credit to an unearned revenue account
Explanation:
Ordinarily, when cash is received from a person whereas service has not been performed, the accounting entry is to debit cash account and credit the unearned revenue account.
Here, the receipt of cash means that revenue was realized however, the service expected have not been performed hence necessitated crediting the unearned revenue account and a debit to the asset cash for the amount received.
Answer:
The answer is "False".
Explanation:
False, because the fall in the price of logging permits will reduce the cost production and fall in the permit will increase the supply of the market. Thus, the supply curve will shift from S to S1. Consequently, the price will fall from P to P1. Here, it can be seen that the equilibrium price has decrease but the question says equilibrium price has increased. So it is false.
If a company strictly complies with existing laws, the firm will fulfill all business ethics obligations.
<h3>What is ethical obligation?</h3>
It should be noted that ethical obligation simply means re things that are expected by a company to do regarding ethics in the organization.
In this case, when a company strictly complies with existing laws, the firm will fulfill all business ethics obligations.
Learn more about ethics on:
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Answer:
a-1. Calculate the ROI for both North and South divisions.
- ROI North Division = net profit / cost of investment = $6,000,000 / $30,000,000 = 20%
- ROI South Division = net profit / cost of investment = $30,000,000 / $320,000,000 = 9.38%
a-2. If Solomons measures performance using ROI, which division had the better performance?
- North Division, since its ROI is much higher
b-1. Calculate the EVA for both North and South divisions. (The divisions have no current liabilities.)
- North Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $30,000,000 x (20% - 8%) = $3,600,000
- South Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $320,000,000 x (9.38% - 8%) = $4,416,000
b-2. If Solomons measures performance using economic value added, which division had the better performance?
- It should choose South Division because its EVA is higher.
c. Would your evaluation change if the company’s cost of capital was 16 percent?
1. When evaluated by ROI?
- No it would not change because ROI doesn't consider cost of capital.
2. When evaluated by EVA?
- Yes it would change because South Division's EVA would be negative, while North Division's will decrease but remain positive.
North Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $30,000,000 x (20% - 16%) = $1,200,000
South Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $320,000,000 x (9.38% - 16%) = -21,184,000
Answer:
An investment of $1,000 in stocks:
yes, because you are purchasing something that may yield more value later.
Explanation:
While Macroeconomics tries to explain aggregate phenomena such as economic growth, business cycles, unemployment, inflation, etc., this does not preclude this branch of economics from agreeing with a fact. An investment remains an asset which the investor purchases in order to generate more future income.