Answer:
- <u><em>d) increases as the interest rate decreases.</em></u>
Explanation:
<em>Present value</em> is the value today; future value is the value some time in the future.
The mere notion of the value of money in time should tell you that, further away in time (towards the future) a sum of money is found, the lower its value today.
Then, you should be able to rule out some propositions that are contrary to that intuition:
- a<em>) decreases as the time period decreases</em> ↔ clearly false: the present value increases as the time period decreases
- <em>e) is directly related to the time period</em>. ↔ clearly false: the present value is inversely related to the time period.
How is the present value related to the future value?
They are directly related: the higher a lump sum in the future the higher the value of it in the present; more money is more money always. More money in the future has more value in the present; less money in the future has less value in the present. Thus, the option <em>b). is inversely related to the future value</em> is false
How is the present value related to the interest rate?. Which one is true?
- c) is directly related to the interest rate, or
- d) increases as the interest rate decreases
The present value is calculated discounted the future value at the interest rate. The interest rate is in the denominator of the equation to pass from future value to present value. Thus, they are inversely related (c is false); the less the interest rate, the higher the present value of a future amount (confirm d is true).
Therefore, the correct answer is that <em>the present of a lump sum future amount: </em><em><u>d) increases as the interest rate decreases.</u></em>
<u />
Answer:
The correct answer is letter "C": Pictorial cues; verbal cues.
Explanation:
Marketing uses different approaches to attract consumers' attention. When it comes to portraying images, advertising can implement pictorial cues to create a depth sensation on two-dimensional surfaces like flyers. Though, a verbal cue is necessary as well to provide the information the promotion is intended to transmit. That data can let the audience know what the advantages and disadvantages of the product promoted are.
Answer:
A.Incremental income(loss)
Sales as scrap $39,000
Rework $41,600
B.The company should REWORK
Explanation:
A. Sales as Scrap Rework
Sales of scrap units ($13,000×3.00)
$39,000
Sales of rework units ($13,000×8.20)
$106,600
Cost to rework units($13,000×5.00) $65,000
Incremental income(loss)
$39,000 $41,600
B.Therefore the company should REWORK
($106,600-$65,000)
=$41,600
Answer:
$8,870
Explanation:
Calculation to determine the balance in the allowance for doubtful accounts after bad debt expense is recorded
Using this formula
Balance in the allowance for doubtful accounts=
(Credit sales* Percentage of Credit sales)+Allowance for doubtful accounts credit balance
Let plug in the formula
Balance in the allowance for doubtful accounts= ($458,000*1.5%)+$2,000
Balance in the allowance for doubtful accounts=$6,870+$2,000
Balance in the allowance for doubtful accounts=$8,870
Therefore the balance in the allowance for doubtful accounts after bad debt expense is recorded will be $8,870