Answer: 1. D) Assets are understated
2. D) Car dealers
Explanation:
1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.
2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.
Answer:
The new price of the bond is $928.94
Explanation:
Initially the bond's price is equal to its par value which means the coupon rate on bond and the market interest rates are the same i.e. 6%.
Th bond's price is calculated as the sum of the present value of the annuity of interest payments by the bond and the present value of the face value of the bond that will be received at maturity. The discount rate used to calculate the present values is the market interest rate.
As the bond is a semiannual bond, we will use the semi annual coupon payment, the semi annual percentage of the annual rate of interest on market and the number of semi annual periods outstanding.
Semi annual coupon payment = 1000 * 0.06 * 6/12 = $30
Number of semiannual periods till maturity = 10 * 2 = 20 periods
New market interest rate = 6 + 1 = 7% annual
New semi annual market interest rate = 7% / 2 = 3.5%
Price of bond = 30 * [ (1 - (1+0.035)^-20) / 0.035 ] + 1000 / (1+0.035)^20
Price of bond = $928.938 rounded off to $928.94
We used the present value of annuity ordinary formula for preset value of interest payments and the normal present value of principal formula for the face value.
I would assume true, visual merchandising is more of displaying products and flat drawing aren’t as interactive.
The two of the most popular database vendors in the marketplace is the restaurant and dtore