All categories

3 years ago

A bond represents a debt for an organization. a. True b. False

Business

1 answer:

lilavasa [31]3 years ago

8 0

Answer:

a. True

Explanation:

An organization's capital is financed by the owners' funds known as equity or borrowed fund referred to as debt financing. An organization may borrow directly from lending institutions such as banks or can issue debt instruments through the financial markets. Bond is one of the debt instruments that companies issue to raise capital through financial markets.

A bond is an agreement between the bond issuer and the investor, where the issuer promises to pay the stated amount to the bondholder at the stated period. The investor buying the bond is equivalent to lending to the issuer. Bonds are a fixed income earner to the investors as they pay regular and fixed interest through their life. At maturity, the issuer pays the investor the maturity value of the bond.

You might be interested in

On a particular risky investment, investors require an excess return of 7 percent in addition to the risk-free rate of 4 percent

Finger [1]

Answer:

Risk Premium

Explanation:

The Excess rate received over the risk free rate to a investor who invested in a risky asset is known as Risk premium. The concept of High Risk High Reward and Low Risk Low Reward applicable here. As in risky investment the investor is exposed to the risk of loss so, he/she requires some extra return for this exposure. Investing in risk free rate is much safer than in a risky investment.

5 0

3 years ago

Delta Corporation acquires 10,000 shares of its own $0.01 par value common stock at $10 per share. It later resells the 10,000 s

Fudgin [204]

Answer:

Additional Paid-in Capital for $20,000.

Explanation:

The Journal is as follows:

Cash A/c Dr. $120,000

To treasury stock $100,000

To Additional paid in capital $20,000

(To record the treasury stock and Additional paid in capital)

Workings:

Cash = 10,000 shares × $12

= $120,000

Treasury stock = 10,000 shares × $10

= $100,000

Additional paid in capital = 10,000 shares × ($12 - $10)

= 10,000 shares × $2

= $20,000

5 0

3 years ago

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual i

MrRa [10]

Answer:

Purchased calculators from Dragoo Co. at a total cost of $1,650:

Dr Inventory 1650
Cr Accounts Payable 1650

Paid freight of $60 on calculators:

Dr Inventory 60
Cr Cash 60

Returned calculators to Dragoo Co. for $52:

Dr Accounts Payable 52
Cr Inventory 52

Sold calculators costing $580 for $760 to Fryer Book Store:

Dr Accounts Receivable 760
Cr Sales Revenue 760

Dr COGS 580
Cr Inventory 580

Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $32.20

Dr Sales Returns and Allowance 45
Cr Accounts Receivable 45

Dr Inventory 32.20
Cr COGS 32.20

Sold calculators costing $650 for $800 to Heasley Card Shop:

Dr Accounts Receivable 800
Cr Sales Revenue 800

Dr COGS 650
Cr Inventory 650

7 0

4 years ago

Organizations with low turnover and satisfied employees tend to perform better. On the other side of the coin, organizations hav

miskamm [114]

Answer:

Answer is explained in the explanation section below.

Explanation:

Voluntary Turnover:

Better Job: If an employee is offered a better job, he may choose to quit his current position.

Careers: If an employee is career-oriented and wishes to pursue higher education, he will willingly leave his employment.

Retirement: When an employee reaches the legal working age, he retires, which is referred to as voluntary retirement.

Involuntary Turnover:

Workplace Violence: An employer may decide to fire an employee who engages in workplace violence. This is what is known as spontaneous turnover.

Violating: If an employee is found to be in breach of the company's rules, he will be dismissed, resulting in involuntary turnover.

Employee layoffs: Forced turnover occurs when a company's employees are laid off in large numbers.

Employment at-will doctrine:

For some reason: This allows the employer to fire an employee for any cause.

Promise: Neither the employer nor the employee has made any commitments to each other.

Refusing to state the reason for the employee's termination: If the employer refuses to state the reason for the employee's termination,

3 0

3 years ago

Blast it! said David Wilson, president of Teledex Company. "We’ve just lost the bid on the Koopers job by $4,000. It seems we’re

Bond [772]

Answer:

1. Assuming use of a plant-wide overhead rate:

A. Compute the rate for the current year.

= $903,000 / $645,000 = $1.40 per $ of direct labor cost

B. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job.

= $14,300 x 1.4 = $20,020

2. Suppose that instead of using a plant-wide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:

A. Compute the rate for each department for the current year.

fabricating = $376,250 / $215,000 = $1.75 per $ of direct labor cost
machining = $430,000 / $107,500 = $4 per $ of direct labor cost
assembly = $96,750 / $322,500 = $0.30 per $ of direct labor cost

B. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job.

fabricating = $5,800 x 1.75 = $10,150
machining = $800 x $4 = $3,200
assembly = $7,700 x $0.30 = $2,310
total = $15,660

3. Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, and applied overhead).

A. What was the company's bid price on the Koopers job if a plant-wide overhead rate had been used to apply overhead cost?

total production costs = $7,900 + $14,300 + $20,020 = $42,220
bid price = $42,220 x 1.5 = $63,330

B. What would the bid price have been if departmental overhead rates had been used to apply overhead cost?

total production costs = $7,900 + $14,300 + $15,660 = $37,860
bid price = $37,860 x 1.5 = $56,790

4. There are no requirements for question 4.

Explanation:

Department

Fabricating Machining Assembly Total Plant

Direct labor $215,000 $107,500 $322,500 $645,000

Man. overhead $376,250 $430,000 $96,750 $903,000

Koopers Job

Fabricating Machining Assembly Total Plant

Direct materials $4,500 $500 $2,900 $7,900

Direct labor $5,800 $800 $7,700 $14,300

5 0

3 years ago