Answer: FALSE
Explanation: In simple words, a lessor refers to an individual who , under a contract of lease, lets another individual to use his or her assets in return of any kind of rent or one time payment.
The individual who pays the rent in return of right to use the asset of the lessor is called a lessee. Lessor is actually the owner of the asset.
Hence the given statement is false.
$4,70,000 is the cash flow from financing activities.
<h3>What are financial activities?</h3>
- Transactions involving owner equity, long-term liabilities, and adjustments to short-term loans are referred to as financing operations.
- The transfer of cash and cash equivalents between the organization and its financial sources is considered a financing activity.
- Let's examine financial operations in further detail.
<h3>What are the 3 financing activities?</h3>
- Cash transactions involving owners' equity and noncurrent liabilities are considered financing activities.
- The principal amount of long-term debt, stock sales and repurchases, and dividend payments are examples of noncurrent liabilities and owners' equity items.
<h3>Why is financing activities important?</h3>
- Both investors and debt suppliers for the company need to know specifics about financing activities.
- The enterprise's financial efficiency is determined by reflecting these actions.
- It demonstrates the organization's capacity for fund-raising and money management.
According to the question:
= Short-term borrowings $4.00 million inflow + Long-term borrowings $6.95 million inflow - Long-term repayments $ (4.25) million inflow - Treasury stock purchases $ (2.00 ) million inflow.
= $4.00 + $6.95 - $4.25 - $2.00.
= $ 4.7 million.
Net financing cash inflow $ 4.7 million inflow.
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When the level of output leads to sales revenue that covers the fixed and variable costs, this is called the Breakeven Point.
<h3>What happens at the Breakeven point?</h3>
This is the point where the company has sold enough units to make back its variable and fixed costs.
At this point, the company would be making $0 profits which is also considered in business to be the normal profit.
Find out more on normal profits at brainly.com/question/3522161.
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Answer:
C. The equipment should be recorded at $2,000 in the accounting records because that was the exchange price.
Explanation:
The equipment should simply be recorded at $2,000. For example, if it was paid in cash, the journal entry would be:
Account Debit Credit
Equipment $2,000
Cash $2,000
The fact that it would cost $4,000 to replace it does not mean that it will be replaced. It is only a hypothetical scenario that should not be recorded in the accounting journal, because it does not reflect economic reality.
Answer:
A) Demand would increase
Explanation:
Interest rates and demand are inversely related, that is to say, if interest rates rise, demand decreases, and if interest rates go down, demand goes up.
The reason for this is that a lower interest rate means that loans are cheaper. As loans are cheaper, investments increase, and more investment means more aggregate demand because investment is one of its components.
