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3 years ago

Which of the following statements is false?

1 answer:

8 0

Answer: d. A company paid for an insurance premium of $6,000 on January 1. The insurance is for a year. Failing to make adjustments for the month of January would overstate assets and stockholder's equity by $6,000.

Explanation:

If a company were to pay $6,000 for Insurance for the YEAR in January, this would be recorded as a PREPAID EXPENSE.

This Prepaid Expense will then be apportioned per month over the year to each month as expenses of $500.

Failing to make adjustments for the month of January would not overstate assets and stockholder's equity by $6,000 but by $500.

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Banks make a profit by

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When people take money out of the bank, they have to pay them back with a little more and interest is why.

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3 years ago

Read 2 more answers

Kuyu Company uses the periodic inventory system. Kuyu started the period with $12,000 in inventory. The Company purchased an add

a_sh-v [17]

Answer:

$29,500

Explanation:

Given that,

Beginning inventory = $12,000

Ending inventory = $6,000

Purchases = $25,000

Purchase return = $1,500

Kuyu’s cost of goods sold during the period:

= Beginning inventory + Net purchases - Ending inventory

= Beginning inventory + (Purchases - Purchase return) - Ending inventory

= $12,000 + ($25,000 - $1,500) - $6,000

= $12,000 + 23,500 - $6,000

= $29,500

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3 years ago

The interest rate is the price paid for use of a.

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Amount of time is the answer

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3 years ago

Kandew Electronics requires all employees who work as research specialists in its electrical engineering department to have a mi

Gemiola [76]

Option D, The given educational requirement would most likely be stated in the job specification for this position.

Explanation: 

A job description is a written account that specifies the duties and obligations of a work, or other related functions.

A written statement of requirements for jobs, professional training, experience level, physical, mental, technological and interpersonal skills required to carry out employment, activities involved in a job and other unique sensory demands is also known as workplace criteria.

The criterion for an applicant is a definition of abilities, expertise, experience, knowledge and other qualities that a candidate will obtain (selection criteria) in order to fulfill the tasks. The definition of the work should be extracted and the basis for the hiring process.

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3 years ago

Suppose that today's date is April 15. A bond with a 10% coupon paid semiannually every January 15 and July 15 is listed in The

zaharov [31]

Answer:

$1,035.4

Explanation:

To find the purchase price of the bond for today April 15, we can follow the following formula:

Purchase price = Selling price + Accrued interest

Therefore, the steps to follow are these:

1. Calculate the selling price.

Theoretically, the selling price tells us how much cash the bond will generate, but brought to present value. To find it, we should know what the par value of the bond and the asked price are. The question only give us the former (101.04). In this case, we will assume that the par or face value - the price at which the bond is sold when it is first released - is $ 1,000, which is the average face value of a bond in the United States.

Now, we apply the following formula:

Selling price (sp) = Par value * (Asked price / 100)

$sp = 1,000 * (101.04/100)$

$sp = 1,000 * (1.0104)$

 $sp = 1,010.4$ 

2. Calculate the accrued interest.

The accrued interest is the part of the purchase price that represents the interest accrued from the last maturity of interest charged to the purchase date. To find it, we apply this formula:

$AC = \frac{D_{c} }{D_{t} } *C$

Where C is the amount of the coupon that is paid periodically (in this case semianually), Dc is the time elapsed since the last payment and Dt is the time between the semiannual payments.

For our case, C is 50. The statement says that the bond pays a 10% coupon, that is $ 100, which is distributed on two dates, therefore, what is paid on each date is $ 50.

The purchase was made on April 15, that is, three months had passed since the last payment, which was on January 15. Therefore Dc is 3.

Finally, the time between the first payment (January 15) and the second (July 15) is six months. Therefore, Dt is 6.

We replace in the equation:

$AC=\frac{3}{6} *50$