Answer:
Contract
Explanation:
The reason is that the employee contract helps the employee to protect his rights and avoids the BluCorp to terminate the employee without any reason. So the employees act also safeguards the employee's rights and talks about the damages and the fines that will be imposed on the employer for terminating employees without any reasons.
Answer:
The number of days' sales in receivables for Year 2 is 48.7
Explanation:
The formula that is applicable to this scenario is the accounts receivable divided by sales multiplied by 365 days
The number of days' sales in receivables=$11,000/$82,500*365=48.67
The correct option is D, since the 48.67 was simply rounded down to one decimal place.
Answer:
Stock is valued at lower of : cost or market price [prudence principle]
Explanation :
Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.
This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.
Answer:
a. What is the expected return of the risky corporate bond over the 5-year holding-period (in %)?
expected return in $ = (50% x 20% x $1,000 x 4) + (50% x 35% x $1,000 x 4) = $400 + $700 = $1,100
holding period return = ($1,100 - $1,000) / $1,000 = 10%
b. What is its effective annual return?
(1 + 10%)⁰°² - 1 = 1.92%
b. What is its effective annual return?
- 2. The government bond is the superior investment
The yield of he corporate bond is very low and the risk is too high.
Answer:
C. Subsidized
Explanation:
According to the economic theory, subsidies could be used to counter market weaknesses and externalities so that greater economic performance is achieved. Subsidy refers to the release of funds from the government to an individual, business, or entity. This results in a decrease in the value of the subsidized product. This support could be either in the form of cash or kind and is usually given to support a social or economic policy. The purpose of the subsidy is to promote the interests of society. It is part of the government 's non-planned expenditure.
