The term that best fits the blank above is HOT SITE. A hot site is very useful once a business experiences disaster in the recovery service. This allows the business to still resume in utilizing computer operations when a disaster happens. Therefore, it would be a great advantage to have a hot site or any equivalent to this.
Answer:
Dr Cash $92,811
Cr Notes Payables $92,811
(Being the proceeds and issuance of note
Explanation:
Annual rate = 12%
Interest for 9 months will be:
9/12 x 12% = 9%
So disbursal is 9% x $92,811
= $8,353
Principal (borrowed money) is $92,811.
The loan was disbursed on January 1. So it's only the proceeds from the loan which will be recorded on this date. Repayment will start at later date.
Therefore, The entry made by Guarantee Company on January 1 will be:
January 1
Dr Cash $92,811
Cr Notes Payables $92,811
(Being the proceeds and issuance of note)
Answer:
$19,600
Explanation:
Using the FIFO method, only 25% of the inventory should be valued at full cost (conversion + materials), while the remaining 75% of the 5,600 units should be valued only at the materials cost, since conversion is still required. The total cost assigned to ending work in process inventory is:
The total cost is $19,600.
Answer:
5.25%
Explanation:
Mathematically, investing at the 3-year risk-free zero rate should be the same as investing at a 2-year risk-free zero rate and one-year forward rate beginning in two years as shown thus
(1+S3)^3=(1+S2)^2*(1+y2y1)^1
S3=4.75%
S2=4.5%
y2y1=unknown
(1+4.75%)^3=(1+4.5%)^2*(1+y2y1)
1+y2y1=(1+4.75%)^3/(1+4.5%)^2
y2y1=((1+4.75%)^3/(1+4.5%)^2)-1
y2y1=5.25%
Answer: we will first add the options.
A. Maximize the market value of the equity.
B. Maximize net income given the current resources of the firm.
C. Minimize the tax impact on the proprietor.
D. Decrease long-term debt to reduce the risk to the owner.
E. Minimize the reliance on fixed costs.
The correct option is A. Maximize the market value of the equity.
Explanation: A sole proprietorship is generally owned by an individual. Therefore there is a usually a limitation to how much funds that can be invested in the business.
What this means is that this form of business is very simple and restrictive with regards to equity financing. In other words, equity financing is usually limited to the amount of funds that the sole proprietor is willing to invest in the business.
This is where good financial management comes in, this is to ensure that the invested equity bears fruit, and achieves high market value in order to yield revenue.
Lack of proper management and the invested equity will be squandered.
