Answer:
C.$5,000.
Explanation:
November 1, 2013
Amount of Loan = $500,000
As the Interest is payable at maturity, at December 31, 2013 only one month of interest expense is accrued, which is not paid, Following Journal entry will be passed tor record the interest expense.
Dr. Interest Expense $2,500
Cr. Interest Payable on Note $2,500
Interest Expense = $500,000 x 6% x 2/12 = $5,000
Answer: Yes, I agree with Graeter’s decision to stop franchising?.
Explanation:
Graeter’s decision to stop franchising was simply to maintain the quality of their products.
If I was in his position, I'll also like to maintain our products quality. It is vital to keep the family business while also following the laid down principles by those before me. Hence, I agree with his decision.
Answer:
a. True
Explanation:
The foreign exchange market is a market for converting the currency of one country into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.
Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
The existence of pre-tax cost of debt and post-tax cost of debt is due
to the acknoledgement of the tax benefit from issuing debt.There is no
tax benefit from paying divdends,so it makes no sense talking about
pre-tax,post-tax cost of equity for a firm.When you think about cash
flow to equity you can only assume that the taxes owed by the company
have already been paid.Now, the taxation over the income of the
shareholder is a whole different issue that does not take place in this
discussion,since it is not taken in consideration either in cost of
equity or cost of debt.
Answer:
components
Explanation:
Components are goods used as materials in manufacturing other products. They are finished products in the real sense but are used as parts in making other products. Components are usually by an original equipment manufacturer and sold to other manufacturing companies or consumers as spare parts.
Motors are complete goods manufactured by an original equipment manufacturer. The manufacturer sells the motors as components to be used in the production of blenders. The motors are, therefore, material used in the making of blenders.
