Answer:
a. Financing for public corporations must flow through financial markets.
FALSE, it can flow through financial markets or financial intermediaries.
b. Financing for private corporations must flow through financial intermediaries.
FALSE, it can flow through financial markets or financial intermediaries.
c. Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
FALSE, they are traded in many different markets around the world.
d. Derivative markets are a major source of finance for many corporations.
FALSE, the major source of financing for corporations are stock markets.
e. The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
f. The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
Answer and Explanation:
The classification is as follows
1. Since it is a salary for the repair technicians so it would be an expense that is incurred
2. The remodeling should be capitalized and depreciated over their useful life of an asset
3, Since there is an annual maintenance cost, so it would be an expense that is incurred
4. The improvement of the line of production should be capitalized and depreciated over their useful life of an asset
5. Addition of a sprinkler system should be capitalized and depreciated over their useful life of an asset
Answer:
d. $4,500
Explanation:
The computation of depreciation expense on the new equipment is shown below:-
For computing the depreciation expense on the new equipment first we need to find out the Depreciation per annum which is here below:-
Depreciation per annum = (Cost - Residual value) ÷ Life
= ($76,000 - $4,000) ÷ 8
= $72,000 ÷ 8
= $9,000
Depreciation for 1 year calendar (July 1 to Dec 31) = Depreciation per annum × 6 months ÷ Total number of months in a year
= $9,000 × 6 ÷ 12
= $4,500
So, the depreciation expenses for the year end up-to 31st Dec is $4,500
Answer:
4,000 units
Explanation:
Given that
Sales volume = 60,000 units
Budgeted production = 54,000 units
Beginning finished goods = 10,000 units
The computation of units for ending finished goods inventory is computed below:-
Budgeted production = Ending finished goods + Sales volume - Beginning finished goods
54,000 = Ending finished goods + 60,000 - 10,000
54,000 = Ending finished goods + 50,000
= 4,000 units
This example illustrates INSIGHT. A person is said to have an insight when a solution to a problem present itself to him or occur to him suddenly. Insight refers to the sudden discovery of a perfect solution after trying unsuccessfully to fix a problem.
