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3 years ago

What effect will this adjustment have on the accounting records?

Business

1 answer:

12345 [234]3 years ago

6 0

Answer:

a.Increase Net Income

Explanation:

Unearned Revenue

The Accrual Principle requires Incomes and expenses to be recorded in the period they occur or incur.

Revenue not earned has not yet occurred and can not be recognized hence no effect on revenues reported for the period.

Fees earned

Fees earned represents increases in economic benefits from non primary activities of the company.

This has the overall effect of increasing Net income in the reporting period

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Panther Co. had a quality-assurance warranty liability of $350,000 at the beginning of 2021 and $310,000 at the end of 2021. War

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Answer:B

Explanation: :)

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2 years ago

Investors select a stock based on the cash they expect to receive from that stock. that cash comes in the form of?

mylen [45]

Investors select a stock based on the cash they expect to receive from that stock. that cash comes in the form of a and b.

Investors are usually different from traders. Investors invest capital for long-term gains, while traders buy and sell securities repeatedly in pursuit of short-term gains. Investors typically generate income by investing capital in either stocks or debt.

So how does an investor choose which stocks to buy?He has two main investment styles: active and passive. Active investors try to outperform the market by buying stocks that they believe are undervalued, with the intention of selling when the stock price rises.

Stock pick. An active portfolio management approach that focuses on a favorable selection of specific stocks rather than broad asset allocation.

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The question is incomplete. Please read below to find the missing content.

Investors select a stock based on the case they expect to receive from that stock. That cash comes in the form of ____.

a. Dividends

b. The future sales price.

c. Interest payments.

d. Commissions.

7 0

1 year ago

assume that your parents wanted to have saved for college by your 18th birthday and they started saving on your first birthday.

wariber [46]

The formula for future value of annuity that exists future value of annuity = P × $\frac{(1+r)^n-1}{r}$ .

Save each year to reach their goal exists $2152.48

Save each year to reach their new goal exists $2869.97

<h3>What is meant by future value of annuity?</h3>

The worth of a series of recurrent payments at a specific future date, assuming a specific rate of return, or discount rate, is the future value of an annuity. The future value of the annuity increases with the discount rate.

Given: amount saved = 120,000

Rate of Interest earned = 12.0 %

time = 18th birthday

Where, annual savings = P

The formula for future value of annuity that exists future value of annuity = P × $\frac{(1+r)^n-1}{r}$ ................(1)

where r exists rate and n exists a time period

put her value

$ 120,000 = P × $$\frac{(1+0.12)^{18}-1}{0.12}$

= $ 2152.48

Save each year to reach their goal exists $ 2152.48 and for $ 160,000 on 18 th Birthday

we consider here annual savings = P

From (1),

Future value of annuity = P × $\frac{(1+r)^n-1}{r}$

$ 160,000 = P × $\frac{(1+0.12)^{18}-1}{0.12}$

P = $2869.97

Therefore, Save each year to reach their goal exists $2152.48

save each year to reach their new goal is $2869.97

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7 0

1 year ago

Assume Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $50 million each year, and expects t

photoshop1234 [79]

Answer:

A) $560 million

Explanation:

First lets calculate the NPV of the cash stream by this investment,

PV Cash stream = Cash flow/ (r-g), where r = avg cost of capital and g = growth of the cash stream.

PV = 50 / (0.09 - 0.04) = $1000 million

We assume that external finance issuance costs are payable as a part of initial outlay of the project and so,

Total initial outlay = 420 + 20 = $440 million

NPV of the project then,

NPV = 1000 - 440 = $560 million

Hope that helps.

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3 years ago

Under the free cash flow approach to valuation: share value equals the present value of all free cash flows. share value is foun

defon

Answer:

The correct answer is option A.

Explanation:

The present value of all free cash flows gives the share value under the free cash flow approach to valuation. It is also called a discounted cash flow valuation.

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3 years ago