The direct income capitalization model employs an infinite time horizon.
<h3><u>
What is time horizon?</u></h3>
- A time horizon, sometimes referred to as a planning horizon, is a set point in the future where specific activities will be assessed or taken to have concluded.
- Assigning such a defined horizon time is important in an accounting, financial, or risk management regime so that alternatives can be assessed for performance over the same time frame.
In the real world, a time horizon is physically impossible. Even though short term horizons like end of day, end of week, and end of month matter in accounting, these horizons are typically used for simple mark to market processes and summing up.
Know more about time horizon with the help of the given link:
brainly.com/question/4985973
#SPJ4
The economic term for the want-satisfying ability, or value, that organizations add to goods or services is utility.
<h3>What is utility?</h3>
Utility refers to the amount of satisfaction a consumer derive from the consumption of certain commodities.
It is the importance or value added to a product or service that helps gives the consumer useful information about all products and services.
Hence, the economic term for the want-satisfying ability, or value, that organizations add to goods or services is utility.
Learn more about utility here : brainly.com/question/24848038
Answer:
A potential obligation that depends on a future event arising from a past transaction or event
Explanation:
A contingent liability is a potential obligation that depends on a future event arising from a past transaction or event.
Contingent liability are usually recorded in the financial statements if :
A. The contingency is likely to occur
B. The amount can be estimated.
I hope my answer helps you
Answer:
Apportioned joint cost to A=$92,800
Explanation:
<em>Joint costs are the costs incurred up until the split-off where two or more products result from the same production process. These common costs need to be apportioned among the joint products using any of the following basis:</em>
- physical units
- Relative sales value basis.
The relative value basis apportions joint costs using the proportion of product individual sales value to the the total sales value.
Total sales value = (280×4,000) + (100×2,800) =1400000
Apportioned joint cost to A =(1,120,000/1,400,000)× 116,000=92800
Apportioned joint cost to A=$92,800
Answer:
9.2%
Explanation:
expected return of the investment = potential return x chance of each return happening
Expected return of the investment:
- 20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
- 50% chance of occurring x 10% potential return = 0.5 x 10% = 5%
- 30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
- total expected return = 9.2%
