Answer:
d. depreciation expense
Explanation:
The expenses which are paid by cash reduced the cash balance displayed in the balance sheet
. Like interest to creditors, stockholders dividend, wages expenses, miscellaneous expenses, admin expenses, etc. These expenses can be paid either by cash or by bank account
.
But the depreciation expense is a non - cash expense which reduces the fixed asset balance over the fixed asset useful life. Plus this is shown in the income statement on the debit side. Like this other examples would be goodwill impairment, amortization expenses, etc.
Answer:
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Answer:
The correct answer is letter "B": A decrease in a deferred tax asset.
Explanation:
A Deferred Tax Asset is an asset on a balance sheet of a business that can be used to lower taxable income. It is the opposite of deferred tax liability that reflects something that will increase income taxes. Both are listed under current assets on the Balance Sheet.
The deferred tax asset will be generated when recorded income taxes owed are higher than the income taxes paid to the Government.
Thus, <em>a decrease in deferred tax is recorded when a company has collected revenue in advance for a good not delivered or a service not rendered yet.</em>
Answer:
The correct answer would be, Decline in Customers.
Explanation:
P.T. Barnum was a successful American promoter. He founded Ringling Bros. and Barnum & Bailey Circus in 1871. At a young age, he moved to New York and tried a lot of businesses including newspaper publishing and running a boarding house.
He started the circus in 1871 which became a huge success just because of his work plus the tactics of advertisement he used to promote his work. According to him, Decline in the customers happen without publicity. He believed that people will come to see your show only if you have attracted them enough to get them out of their houses and come to see your show through your powerful advertisements.
Answer:
Cost of equity = 10.9%
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em><em> </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
D0× (1+g)/Po × (1-F) + g
Do - dividend in the following year, K- requited rate of return , g- growth rate , F= Floatation cost in %
DATA:
D0- 3.68
g- 5%
P=67
K- ?
Po×(1-F)= 67-3.68=$63.32
Ke = 3.68× 1.05/ 63.32 + 0.05 =0.109
Cost of equity = 0.109× 100= 10.9%
Cost of equity = 10.9%