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blondinia [14]
4 years ago
9

Amortization related to overvalued equipment Select one: A. increases consolidated net income. B. increases the parent's reporte

d net income under the equity method. C. increases consolidated expenses. D. Both A and B are correct.
Business
1 answer:
Kruka [31]4 years ago
4 0

Answer: D. Both A and B are correct.

Explanation: Amortization is the reduction or paying off debt over time in a series of payments of interest and principal sufficient to repay the loan in full by its maturity date.  As an accounting technique, it is used to periodically lower the book value of a loan or intangible asset over a period of time. Amortization related to overvalued equipment increases consolidated net income and under the equity method (a method used in the valuation of a firm's investment in another when it holds significant influence over the firm being invested in), it increases the parent's reported net income.

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Some businesses may be able to self-finance, or fund their growth through utilization of their own net income and cash resources
adoni [48]

Answer:

B) Bootstrapping

Explanation:

Usually established businesses self finance themselves by setting a retained earnings amount that can be used for financing new or existing projects instead of being distributed to its owners (or shareholders) and without having to borrow money.

Bootstrapping refers to setting a company and making it grow without using loaned money. This means that the business either grows with money that its owners put into it, or by setting aside retained earnings.

5 0
3 years ago
In 2001, puerto rico enacted a law that requires specific labels on cement sold in puerto rico and imposes fines for any violati
Nataly_w [17]

The Dormant Commerce Clause is not found in the Constitution, however, it allows the US federal government to regulate commerce within the states, US territories, and international commerce. Therefore, When any state law contrasts with the Commerce Clause, the dormant commerce clause takes effect. Now in this situation, Puerto Rico is restrained from enforcing any laws concerning commerce, since it is still under "US territories, the control to exercise such is left to the US government. So, based on this facts, I will say YES the Puerto Rican law broke the dormant commerce clause. Puerto Rico as a US territory does not have the power to regulate the cement labels because this law concerns commerce.

7 0
3 years ago
Etmer enterprises has budgeted sales for the next four months as follows: budgeted sales in units january 7,400 units february 4
Artyom0805 [142]

Units to be produced in February is calculated as -

Units to be produced in February = February sales + Ending inventory of February - Beginning inventory

February sales = 4,600 units

Ending inventory = 25 % * Sales of March = 25 % * 5,300 units = 1,325 units

Beginning inventory - 25 % * Sales of February = 25 % * 4,600 unit = 1,150 units

Units to be produced in February = 4,600 units + 1,325 units - 1,150 units

Units to be produced in February = 4,775 units

8 0
3 years ago
Assume you deposit $5,000 at the end of each year into an account paying 9.5 percent interest. a. How much money will you have i
alekssr [168]

Answer: $242,567.27

Explanation:

The $5,000 is an annuity as it is being paid every year and is a constant amount.

The value in 19 years is the future value of this annuity:

Future value of annuity = Annuity * ( ( 1 + rate) ^ number of years - 1) / rate

= 5,000 * ( ( 1 + 9.5%)¹⁹ - 1) / 9.5%

= $242,567.27

8 0
3 years ago
You manage a project with 10 activities. Activities A1, A3, A5, A9 form the critical path. As you have a large budget for the pr
Genrish500 [490]

Answer:

A bad idea, as A2 is not on the critical path.

Explanation:

Critical path is a path which is the shortest path of doing the activity.

When an activity is in critical path, then there is a benefit of crashing it. Or if it is not the part of critical path then the benefit is to crash the activity and then apply the spare resources in some activity which is a part of critical path.

Thus, crashing A2 which is not a part of critical path and then not deploying the resources on to the activities of critical path will not provide for any benefit.

It is ultimately not a wise idea.

4 0
4 years ago
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