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2 years ago

6

All of the following are benefits of debt financing except: Group of answer choices Interest on debt financing is tax deductible

Debt is typically cheaper than equity Debt does not have predefined payment terms Debt can motivate managers to reduce wasteful spending

1 answer:

Tema [17]2 years ago

5 0

Answer:

Debt does not have predefined payment terms

Explanation:

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Which feature prevents a company from uilizing the private assets of its shareholders for the payment of its leabiities?

-Dominant- [34]

Answer: Limited Liability

Explanation: Business owners' liability for debts is restricted to the amount they put into the business.

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3 years ago

U.S. exports create a:____.

alisha [4.7K]

Answer:

B) Supply of foreign currencies and a supply of dollars in the foreign exchange markets

Explanation: just search it up they don't demand for foreign currencies they supply of foreign currencies

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2 years ago

A bond indenture is

Lena [83]

Answer:

C. A contract between the corporation issuing the bonds and the bond trustee, who is acting on behalf of the bondholders.

Explanation:

A bond indenture specifies the contract which is between the bond issuers and bond holders. The contract specifies all the obligations owed by the issuers to the bond holders.

In this case the right definition of indenture would be a contract between the corporation issuing the bonds and the bond trustee, who is acting on behalf of the bondholders.

Hope that helps.

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3 years ago

Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross profit on insta

inessss [21]

Answer:

See the journal entry below.

Explanation:

Before preparing the journal entry, the following are calculated first:

Income tax expense in 2019 = (Taxable income in 2019 * Tax rate in 2019) + (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($158,000 * 40%) + ($195,000 * 45%) + ($92,100 * 45%) = $193,395

Deferred tax liability in 2019 = (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($195,000 * 45%) + ($92,100 * 45%) = $129,195

Income tax payable in 2019 = Taxable income in 2019 * Tax rate in 2019 = $158,000 * 40% = $63,200

Income tax payable in 2020 = Taxable income in 2020 * Tax rate in 2020 = $195,000 * 45% = $87,750

Income tax payable in 2021 = Taxable income in 2021 * Tax rate in 2021 = $92,100 * 45% = $41,445

The journal entry will look as follows:

<u>Date General journal Debit ($) Credit ($) </u>

31 Dec 2019 Income tax expense 193,395

Deferred tax liability 129,195

Income tax payable 63,200

<u><em> (To record income tax payable.) </em></u>

31 Dec 2020 Deferred tax liability 87,750

Income tax payable 87,750

<u><em> (To record income tax payable.) </em></u>

31 Dec 2021 Deferred tax liability 41,445

Income tax payable 41,445

<u><em> (To record income tax payable.) </em></u>

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2 years ago

Opportunity cost is __

Mariulka [41]

Answer: A.

Explanation:

By definition, opportunity cost is the amount or value of something you gave up for another good.

For example: say you value sleeping in at $5 value going to class at $4. You decide to get up and go to class, the $4 value. Therefore, your opportunity cost is what you gave up (sleeping in) for another good/choice (going to class), is $5 since you valued sleeping in at that.

6 0

3 years ago