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3 years ago

Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

Business

1 answer:

coldgirl [10]3 years ago

4 0

Answer:

Option C

Explanation:

In simple words, Horizontal analysis ( also referred to as pattern analysis) is indeed a method for the study of financial records that indicates improvements in the sums of the related products over a span of time. This is a valuable tool for determining pattern circumstances. The reports are being used in horizontal analysis for two different time intervals and is compared on percentage basis.

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A $600,000 bond was retired at 102 when the carrying value of the bond was $622,000. The entry to record the retirement would in

lubasha [3.4K]

Answer:

The answer is a. gain on bond redemption of $10,000.

Explanation:

As the carrying value of the bond is up to $622,000, while the redemption only takes the company 600,000 x 102% = $612,000 ( that is, it takes $612,000 cash to clear $622,000 liabilities); the entry will include a gain on bond redemption of $10,000 which is calculated as $622,000 - $612,000 = $10,000.

Details entry should be:

Dr Bond payable 600,000

Dr Premium on bond 22,000

Cr Cash 612,000

Cr Gain on bond redemption 10,000

5 0

3 years ago

The unadjusted trial balance of la mesa laundry at august 31, 2019, the end of the fiscal year, follows:

NemiM [27]

Trial balance is used to see the accurate of the balancing of ledgers. if there is an error in the trial balance a temporary account known as the suspense account can be opened

8 0

3 years ago

OptiLux is considering investing in an automated manufacturing system. The system requires an initial investment of $4 million,

Deffense [45]

Answer:

Requirement 1: $257,000 Positive

Requirement 2: IRR is higher than 10%

Explanation:

Requirement 1:

We can use the following formula, to calculate the net present value of the project:

Net Present Value = Annual Cash Inflows * Annuity Factor - Investment

Here

Annual Cash Inflow is $500,000

r is 10%

n is the life of the project which is 20 years

Annuity factor = (1- (1+r)^-n) / r = (1 - (1 + 10%)^-20) / 10% = 8.514

Investment is $4,000,000

By putting values in the above equation, we have:

Net Present Value = $500,000 * 8.514 - $4,000,000

NPV = $257,000 Positive

Requirement 2:

Internal rate of return gives the required rate at which NPV is zero.

Since NPV is positive at 10%, IRR will be higher than 10%.

Always remember that, increase in the discount rate decreases the NPV and vice versa.

5 0

4 years ago

The following are all characteristics of projects EXCEPT: A. Projects are complex, involving a variety of skills and capabilitie

MrRissso [65]

Answer:

E. Projects are companies that launch a new, sustainable business model.

Explanation:

project can be regarded as series of tasks which is under processing and need to be completed so that specific outcome can be reached. A project can as well be regarded as a set of both outputs and inputs that it's needed in achieving a particular goal. Projects can simple or complex one , managing of project can be by one person or a hundred.

It should be noted that following are all characteristics of projects;

✓ Projects are non-routine, making planning difficult.

✓Projects are complex, involving a variety of skills and capabilities.

✓ Projects have a clear starting and ending point.

✓Projects typically require significant levels of cross-functional and inter-organizational coordination.

6 0

3 years ago

Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00

elena-s [515]

Answer:

The flexible-budget amount is $120,000

Explanation:

The flexible-budget amount is the same lump sum as the static budget.

Therefore, The flexible-budget amount is $120,000.

5 0

3 years ago