Answer:
When you adjust the useful life of an asset, you must do it prospectively, i.e. the past depreciation is not adjusted, all you adjust is future depreciation expense. Since no journal entries are required to adjust past depreciation, the change in the asset's useful life are not part of any current financial statement. They should only affect future financial statements.
If the change is significant, e.g. a nuclear reactor's life is extended by 10 years, which reduces depreciation expense by $50 million per year, then it should be included in the footnotes. But if the change will not significantly alter any financial statement, e.g. the useful life of a machine is reduced in 5 years and will increase depreciation expense by $500 per year, then it may or may not be included in the footnotes depending on the size of the company.
Answer:
Market survey
Explanation:
For Donna to open a new business in which she will be successful and very profitable she needs to know what problem/need her new business/product can solve in the society. this is very important to know before engaging in any form of business because businesses that solve problem/needs of its community tend to strive better even in a bad economy.
The best marketing strategy to determine this need/want is called Market survey. this survey can be carried out by creating a one page questionnaire about her intended product and post/send it to the relevant audience for appropriate feedback and also to professionals in her intended product. the feedback she gets from the questionnaire will help inform her on the best product to sell.
Answer: 1. Capital Budgeting
2. Payback Period
3. Number of Years Prior to Full Recovery + (Unrecovered Cost at Start of Year / Cash flow during the year)
Explanation:
Payback period was the earliest <u>Capital Budgeting</u> selection criterion. The <u>Payback Period</u> is a "break-even" calculation in the sense...
The Payback period is one of the most simple methods in Capital Budgeting and the earliest as well. It simply checked how long it would take to pay back an investment which made it very alluring to investors who wanted to know how long it would be till they started getting a profit.
It therefore essentially checked when the project would Break-Even.
The formula is,
Number of Years Prior to Full Recovery + (Unrecovered Cost at Start of Year / Cash flow during the year)
This means that to calculate the Payback Period, for example, say the investment was $500 and the project brought in $120 for 5 years.
That would mean that in year 4 it would have brought it $480. Year 4 is the <em>Number of Years prior to Full recovery</em>.
The $20 left is the <em>Unrecovered cost at the start of the year</em> and the <em>Cashflow for the year is $120</em>. The Payback is therefore,
= 4 + (20/120)
= 4.17
Answer:
Business risk.
Explanation:
Business risk (uncertainty associated with the ability to forecast EBIT due to factors such as sales variability and operating leverage).
Answer: Lorenz curve
Explanation:
One of the main tools used by economists to measure the actual distribution of income in an economy is known as the Lorenz curve.
The Lorenz curve Lorenz curve is a graph that shows the inequality witybrwgrds to the income and wealth distribution for a particular economy. The x-axis on the graph shows the population, while the y-axis shows the wealth.
