Answer:
4.92%
Explanation:
we have to calculate the market price of the bond in one year from now but in order to do this we have to calculate the yield to maturity:
YTM = {80 + [(1,000 - 750)/10] / [(1,000 + 750)/2] = 105 / 875 = 12%
the market price of the bond in one year is:
PV of face value = $1,000 / 1.12⁹ = $360.61
PV of coupon payments = $80 x 5.3282 (PV annuity factor, 12%, 9 periods) = $426.26
market price one year from now = $786.87
capital gains yield = ($786.87 - $750) / $750 = 4.92%
Answer:
B. Avoidable
Explanation:
A relevant cost is a cost that only relates to a specific management decision. This means that a relevant cost is a cost that differs between alternatives being considered . Fixed , Variable and Sunk cost will always exists so they are not relevant when comparing two alternatives.
Avoidable costs, will exists if we choose a particular alternative. So it's relevant for your decision.
We can actually deduce here that the statement, "revenue is recorded when services are performed, whereas deferred revenue is recorded when cash is received from customers in advance before services are performed" is true.
<h3>What is revenue?</h3>
Revenue is actually known to be the general or total income that an organization or a firm makes from sales of their goods and services. Revenue made helps to ascertain how the company is fairing in terms of sales and customer retention.
We see here that it is true that revenue is recorded whenever services have performed and the service provider has received the payment.
Learn more about revenue on brainly.com/question/24280609
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Answer and Explanation:
The Journal entries are as follows:
On January 1
Petty cash Dr. $140
To cash $140
(Being the petty cash fund is recorded)
On January 8
Postage expense Dr. $47
Merchandise inventory Dr. $12
Delivery expense Dr. $14
Miscellaneous expenses Dr. $36
To Cash $109
(Being the reimbursement of the petty cash fund is recorded)
On January 8
Petty cash Dr. $450
To cash $450
(being the increase in petty cash fund is recorded)
Only these three entries are recorded
Answer:
The correct answer is option (d) $1.3 billion.
Explanation:
Given Data:
inventory value under FIFO costing = $2.1 billion
LIFO Reserve for year-end 2013 = $0.6 billion
LIFO Reserve for year-end 2014 = $0.8 billion
LIFO inventory is calculated using the formula;
LIFO inventory value at year-end 2014 = FIFO inventory - LIFO reserve
=$2.1 billion-$0.8 billion
= $1.3 billion
