I think the most approximate answer would be B. As this would increase his/her liabilities but totally NOT assets. The best way, is that you should manage to have more assets than liabilities, in order to go and enjoy your vacation.
I hope you helped you!
Answer:
The question requires the answering party to pick all that apply as found in the attached.
A. The initial payment will be recorded as an increase to a Prepaid Insurance account.
B. Over time, the expired portion of the policy must be removed from the asset account as it has been used up and is no longer considered an asset.
C. As a portion of the policy expires, the expired portion will be removed and transferred to an expense account.
Explanation:
The initial payment will be recorded as increase to an asset account,prepaid insurance is a correct statement,pending when the insurance cost is cost,
Subsequently,the expired the portion of the prepayment would be removed from the account,hence point B is also correct.
Finally,when the expired portion is removed from prepaid insurance account,it is transferred to insurance expense account,point C is also on point.
Answer and Explanation:
The computation is shown below:
1, The cost of debt before tax is
Given that
NPER = 10%
PMT - $1,000 × 7% = $70
PV = $886
FV = $1,000
The formula is given below:
= RATE(NPER;PMT;-PV;FV;TYPE)
After applying the above formula, the before tax cost of debt is 8.76%
2. The after tax cost of debt is
= 8.76% × (1 - 0.30)
= 6.13%
3. The total equity is
= $20 per share × 2million shares
= $40 million
4. The cost of equity is
= Risk free rate of return + Beta × (Market rate of return - risk free rate)
= 4% + 1.2 × (9% - 4%)
= 10%
5. The weight of debt is
= ($886 × 20 ÷ $1,000 ) ÷ (886 × 20 ÷ $1,000 + $40)
= 30.70%
6. The WACC is
= Weight of debt × after tax cost of debt + weight of equity × cost of equity
= 30.70% × 6.13% + (1 - 0.3070) × 10%
= 8.81%
Answer: Salvation army
Explanation: Non profit organisations are those organisation, which perform their operation with the objective of social welfare or charity.
Salvation army is a charitable organisation having more than 1.7 million members all over the world, whom they refer to as soldiers. This organisation mainly serves to the poor and hungry.
Thus, we can conclude that the right option is D.
Answer:
Ted's net cash flow is zero. Therefore, he might want to work on managing his income to get a positive net cash flow. There is no indication that Ted is putting any money in savings.
Hope it helps!
