Answer:
Conservatism
Explanation:
Conservatism also known as the "doctrine of prudence" is a principle where by the accountant plays safe by anticipating future losses without considering future gains.
Answer:
Statement of cash flow
Explanation:
Statement of cash flow is a the financial document which is used to look at the past & see how much you made & where it went.
It consists of the entire data of the reconciling of the cash flow from the beginning of the period till the end of that period. It starts off with the net income and throughout its way, acknowledges the income spent, acquired, depreciation, loans, assets and expenses etc and shows it on the statement.
Answer:
Lost contribution per unit = $56 per unit
Explanation:
The Division X is operating at less than full capacity, hence it has excess capacity of 600 units i.e (5000- 4,400)
This implies that it can only produce to meet the external and a portion of Division Y demand
Since Division X can only accommodate a portion of the internal demand, an opportunity would arise if it decides to meet all the request of Division Y.
Therefore, the minimum transfer price
minimum transfer price= Variable cost + a lost contribution from internal supply
The lost contribution represent the amount Division X would have made had sold the units to external buyers
Lost contribution per unit = $56 per unit
She can try reading stories, correct her mistakes on her own and then check to see how she has done, she can study Riggs too.
Answer:
The best estimate of the company’s cost of equity is 11.99%.
Explanation:
CAPM based required return = 5% + 1.1*7%
= 12.7%
Dividend model required return
35 = (1.40*1.07)/(r - 0.07)
r - 0.07 = 0.0428
r = 11.28%
The best estimate of the company’s cost of equity is the mean of two = (12.7% + 11.28%)/2
= 11.99%
Therefore, The best estimate of the company’s cost of equity is 11.99%.
