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SOVA2 [1]
3 years ago
5

When is a goodwill impairment loss recognized? a. Annually on a systematic and rational basis. b. Never When both the fair value

of a reporting unit and its associated implied goodwill fall below their respective carrying values. c. If the fair value of a reporting unit falls below its original acquisition price. d. Whenever the fair value of the entity declines significantly.
Business
1 answer:
gulaghasi [49]3 years ago
7 0

Answer:

The correct answer is letter "C": When both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values.

Explanation:

Impairment Loss is the decrease in an asset's net carrying value that exceeds the future undisclosed cash flow it should generate. The net carrying value is an asset's acquisition cost minus depreciation. Impairment occurs when a company sells or abandons an asset that is no longer beneficial.

Thus, <em>a goodwill impairment loss is recognized when the goodwill's net carrying value is below its fair value and the expected cash flow it was to generate.</em>

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Ms. Jones wants to make 14​% nominal interest compounded quarterly on a bond investment. She has an opportunity to purchase a 12
AlladinOne [14]

Answer:

IF mrs Jones wants to make 14% on the bond this is her required return and what the ytm of the bond should be to make her want to buy the bond. Because the bond pays a coupon of 12% she will want to pay less than the face value of the bond, so that the overall return can be 14%. Whenever the coupon rate of the bond is less than the required return or ytm, the bond is sold at a discount. In order to find at what price should she buy the bond we will need a financial calculator and input the following

FV= 10,000

YTM= 3.5 ( We divide 14 by 4 to find the ytm because the bond has quarterly compounded payments)

PMT= 300 ( We find out the 12% of 10,000 and divide it by 4 because the bond has quarterly payments)

N= 48 (12 years into 4 because there will be a total of 48 quarters and 48 payments)

Put these values in a financial calculator and compute the PV

PV= 8,845

The present value of the bond is 8,845 if the required return is 14% which means she should be willing to pay $8,845 for the bond today.

Explanation:

6 0
3 years ago
Explain 10 reasons why a joint stock company is preferable to a one man's business<br>​
mart [117]

Answer:

Advantages of a Joint Stock Company

One of the biggest drawing factors of a joint stock company is the limited liability of its members. their liability is only limited up to the unpaid amount on their shares. Since their personal wealth is safe, they are encouraged to invest in joint stock companies

The shares of a company are transferable. Also, in the case of a listed public company they can also be sold in the market and be converted to cash. This ease of ownership is an added benefit.

Perpetual succession is another advantage of a joint stock company. The death/retirement/insanity/etc does affect the life of a company. The only liquidation under the Companies Act will shut down a company.

A company hires a board of directors to run all the activities. Very proficient, talented people are elected to the board and this results in effective and efficient management. Also, a company usually has large resources and this allows them to hire the best talent and professionals.

Disadvantages of a Joint Stock Company

One disadvantage of a joint stock company is the complex and lengthy procedure for its formation. This can take up to several weeks and is a costly affair as well.

According to the Companies Act, 2013 all public companies have to provide their financial records and other related documents to the registrar. These documents are then public documents, which any member of the public can access. This leads to a complete lack of secrecy for the company.

And even during its day to day functioning a company has to follow a numerous number of laws, regulations, notifications, etc. It not only takes up time but also reduces the freedom of a company

A company has many stakeholders like the shareholders, the promoters, the board of directors, the employees. the debenture holders etc. All these stakeholders look out for their benefit and it often leads to a conflict of

Explanation:

6 0
3 years ago
Suppose France can produce four phones or three computers with one unit of labor, and Sweden can produce one phone or two comput
Fynjy0 [20]

Answer:

France should specialize in producing phones and import computers from Sweden

Explanation:

France can produce: 4 phones or 3 computers

The opportunity cost of producing 1 phone = (3 ÷ 4)

                                                                        = 0.75 computers

The opportunity cost of producing 1 computer = (4 ÷ 3)

                                                                        = 1.33 phones

Sweden can produce: 1 phone or 2 computers

The opportunity cost of producing 1 phone = (2 ÷ 1)

                                                                        = 2 computers

The opportunity cost of producing 1 computer = (1 ÷ 2)

                                                                        = 0.5 phones

According to the comparative advantage,

Sweden has a comparative advantage in producing computers because the opportunity cost of producing computers is lower for Sweden than for France.

France has a comparative advantage in producing phones because the opportunity cost of producing phones is lower for France than for Sweden and import computers from Sweden because Sweden has a comparative advantage in producing computers.

7 0
2 years ago
The difference between a divine command view and authoritarian view is that the authority figure is different. true or false?
taurus [48]

The difference between a divine command view and authoritarian view is that the authority figure is different-Yes the statement holds true

Explanation:

<u>In a Divine Command of View</u>

we often come across statement like -"I would do what God or the scriptures say is right'

As per this point of view the  right and wrong are determined by a supernatural supreme being, whose will we discern from sacred texts and divinely inspired messengers.

<u>Authoritarian View</u>

An example of Authoritarian view is sentence like " I would follow the advise of an authority"

According to this view  the  right and wrong is decided by the authorities.The power of taking decision rest in the hands of a particular authority.

Downside of this view is that : authorities do not always reflect wisdom and not all authorities agree.

As you can see that the difference between the two view point is the authority figure.So the answer is True

8 0
3 years ago
Which section of the business plan contains information about the financial history of the company? A. Financial Analysis B. Fun
Romashka [77]
I believe it is A if not then B hope this helps
6 0
2 years ago
Read 2 more answers
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