Answer: D. balance sheet only
Explanation: The transaction will immediately affect the "balance sheet only" not the income statement or retained earnings.
Balance sheet shows the business net worth. Balance sheet shows the financial position of a business listing the liabilities and assets and owners equity at a particular time.
So Genesis buying a new equipment on credit will show in its balance sheet.
Answer:
The correct answer is D. It is not correct that Holt and Collins will not have the chance to present their cases.
Explanation:
Arbitration is an alternative means of conflict resolution, in which an impartial third party, the arbitrator, is selected so that after hearing the cases of the parties, make a decision applying both the law and the ethics and morals. Thus, it is avoided to reach the court using an alternative and quick resolution route, which seeks to save time and money for the parties. The arbitrator's decision will be called an award, and it will be binding on the parties just as the judges' sentences are in trials.
Answer:
7.5%
Explanation:
Calculation to determine what is Holmes' after-tax cost of debt
Using this formula
After-tax cost of debt=YTM (1-Taxes)
Where,
YTM = 10%
Tax Rate = 25%
Let plug in the formula
After-tax cost of debt= 10%(1-25%)
After-tax cost of debt=10%(75%)
After-tax cost of debt=0.075*100
After-tax cost of debt=7.5%
Therefore Holmes' after-tax cost of debt is 7.5%
Answer:
D. Sole proprietorship
Explanation:
A Sole proprietorship is also referred to as the sole trader. It is the simplest form of business ownership. The business is owned and managed by one person.
Legally, the sole proprietorship is not an independent entity. It means that the business owner is fully liable to the debts and obligations of the business.