Answer:
Rent of the building will remain the same
Explanation:
The fixed costs will not change because fixed cost remains fixed for any level of activity whereas the variable cost changes with the increase in level of activity. As the activity level will change with additional hours work which will increase the variable costs only. So all variable costs will increase whereas fixed will remain fixed. The all the other options were variable costs except rent which is fixed cost. So rent will no change because of additional hours worked.
Answer:
Companies HD and LD
Since Company HD has the higher total debt to total capital ratio, the statement that is CORRECT is:
B) Company HD has a higher return on equity than company LD.
Explanation:
Return on Equity (ROE) is a financial measure of how well a company's management deploys shareholders' capital. A higher ROE can be a result of high financial leverage, meaning that more debt than equity is being used to generate the returns. Note that too much leverage poses solvency risks.
Answer:
option (B) $640,000
Explanation:
Data provided:
Amount received = $960,000
Total duration of a season = 6 months
Duration from January 1, 2018 to April 2018 = 4 months
Therefore,
The Deferred revenue recognized =
× 4 months
or
The Deferred revenue recognized = $160,000 × 4 months
or
The Deferred revenue recognized = $640,000
Hence,
The correct answer is option (B) $640,000
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