Answer: the correct answer is D. none of these answers is correct.
Explanation: A transfer price exists for accounting purposes when diverse divisions on a multy entity company are in charge of their own revenues.
Answer:
Option B has a higher present value at time zero is correct
as shown below:
Option A future value at the end of three years = 2000*(1.06)^2+5000*(1.06)^1+5000*(1.06)^0= $12,547
Option B future value at the end of three years = 4000*(1.06)^2+4000*(1.06)^1+4000*(1.06)^0=$12,734
Option B has higher future value as determined above, so first option is wrong.
Option A present value at time zero = 2000/(1.06)^1+5000/(1.06)^2+5000/(1.06)^3= $10,535
Option B present value at time zero = 4000/(1.06)^1+4000/(1.06)^2+4000/(1.06)^3=$10,692
Option B has higher present value as determined above, so second option is correct.
Third option is wrong as Option B is not perpetuity as B has three years life.
Fourth option is wrong as Option A is not ANNUITY as A CASH FLOW amounts is not equal , it varies on annual basis.
<span>Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? Positive incentive. A positive incentive is a value that is given during the performance of a regular behavior. As long as Tina does what she is supposed to her parent's will continue to pay her car insurance. There is a reward for her doing what she </span>should be doing on her own which is motivating her to continue to do it.
Answer:
b. 4.90%
Explanation:
the portfolio's return in a normal economy:
= (0.23 x 11.3%) + (0.44 x 4.7%) + (0.33 x 13.7%) = 9.119%
the portfolio's return in a booming economy:
= (0.23 x 18.6%) + (0.44 x 26.6%) + (0.33 x 18.1%) = 21.955%
weighted average return:
(0.82 x 9.119%) + (0.18 x 21.955%) = 11.42948%
standard deviation:
= {[0.82 x (9.119% - 11.42948%)²] + [0.18 x (21.955% - 11.42948%)²]}⁰°⁵
= (0.000437742 + 0.001994158)⁰°⁵ = 0.0024319⁰°⁵ = 0.049 = 4.9%
The standard deviation of a stock or a portfolio measures the risk of the stock or the portfolio. The lower the standard deviation, the less risky the stock or portfolio.
Answer:
d. $65,490
Explanation:
A cash flow statement (CFS) is a financial statement shows the amount of cash and cash equivalents that has entered and left an organisation. It only deals in cash and cash equivalents.
From the question, the sale for cash of office equipment with a book value of $59,856 at profit of $5,634 will be recorded in the Cash flows from investing activities section of the CFS based on the actual cash that entered the company. In this case, the total cash received from the sale and which is the actual cash that entered the company in respect of this transaction is the addition of the book value of $59,856 and the gain of $5,634 which is approximately $65,490.
Therefore, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is $65,490.
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