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3 years ago

Which statement is correct?

Business

1 answer:

qaws [65]3 years ago

6 0

Answer:

a. Accumulated Depreciation is used to reveal the value of the related asset on the date of the balance sheet.

Explanation:

"Accumulated depreciation is the total amount an asset has been depreciated up until a single point. Each period, the depreciation expense recorded in that period is added to the beginning accumulated depreciation balance. An asset's carrying value on the balance sheet is the difference between its historical cost and accumulated depreciation. At the end of an asset's useful life, its carrying value on the balance sheet will match its salvage value."

Reference: Tuovila, Alicia. “Accumulated Depreciation Definition.” Investopedia, Investopedia, 18 Oct. 2019

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Lyons Company deducts insurance expense of $210,000 for tax purposes in 2018, but the expense is not yet recognized for accounti

djyliett [7]

Answer:

The total income tax expense for 2019 =152.000. Is not available in the options given by the exercise.

Explanation:

Tax on insurance expense deductible for accounting purposes in 2019= 70000*40%=28.000

Income tax expense for 2019 = 180.000-28.000=152.000

4 0

3 years ago

A project will produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project w

Lelu [443]

Answer :

Net present value = -$18,375

Explanation :

As per the data given in the question,

Initial investment = $239,800

The project will generate operating cash flow pf $56,200 for 5 years

So present value of operating cash flow :

PMT = $56,200

N = 5 years

Rate = 15.2%

FV = $0

Now applying the formula

= -PV(RATE,NPER,PMT,FV,0)

The present value comes $187,502

Now

FV = $67,000

n = 5 years

Rate = 15.2%

PMT = $0

Now applying the formula

= -PV(RATE,NPER,PMT,FV,0)

The present value comes $33,023

Now the Net present value is

= ($33,023 + $187,502) - $238,900

= -$18,375

5 0

3 years ago

Define treasury stock. Why do corporations acquire treasury stock?

Dmitriy789 [7]

Treasury stock, also known as treasury stock or repurchased stock, refers to shares issued prior to being repurchased by shareholders through the issuing company. As a result, the total number of shares outstanding on the open market is reduced.

Companies may use their shares to pay for investments in or acquisitions of competitors. These stocks may also be reissued to existing shareholders to reduce dilution from employee incentive compensation plans.

Stocks consist of shares in which the ownership of a company or business has been divided. One share represents a partial ownership interest in the company over the total number of shares.

Learn more about stock here:brainly.com/question/25818989

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8 0

2 years ago

Firms A and B plan to collude in an economy for their similar products, which includes the grim strategy for punishment. They p

denis-greek [22]

Answer: C. Firm A reduces the price to $7 causing Firm B to reduce its price to $4.50.

Explanation:

Since firm A is impatient to earn more profits and Firm B wishes to last in the business for the long-run, then Firm A will reduce the price to $7 causing Firm B to reduce its price to $4.50.

Since Firm A reduces the price to $7, this will lead to an increase in the quantity demanded of the product and therefore the firm can earn more profit. On the other hand, firm B will reduce its price to a point where the price meets the marginal cost which is $4.50.

3 0

3 years ago

Which is the most accurate statement about trade? a. Trade can make every person better off. b. Trade helps rich people and hurt

laiz [17]

Answer:

a. Trade can make every person better off.

Explanation:

Trade generates a benefit for all parties trading. If a party do not fell like winning with trade, it will stop trading and the trade will not occur. It is important for each party to make sure the other wants to keep trading, so quantity and price will be based upon both parties agreement.

A person can trade for product she produces, for example a person who produce a certain fruit can buy the same fruit when is off-station in their side of the world with another producer.

It could also trade becasue is the raw material of a finished product and it need more input for his facilities.

If a person or a party who is trading thinks is worse than before the trade, then it will stop trading so, as long as there is trade, both parties are better off after the trade.

7 0

3 years ago