Expenses likely to be classified as prepaid expense (asset) are Prepaid Rent & Insurance Premiums. Enter a prepaid rent payment on the balance sheet as an asset until the month when the company is actually using the facility to which the rent relates, and then charge it to expense. Any insurance premium costs that have not expired as of the balance sheet date should be reported as a current asset such as Prepaid Insurance.
Answer:E- A temptation to start a crisis to create public support at home
Explanation: A diversionary incentive is a term used to describe the various attempts of a foreign country to create crisis in a given country in order to gain support at home.
Diversionary incentive is usually implemented by certain countries for their own selfish gains,they want their own Citizens to focus their minds and interests in crisis outside their own Country,hence lossing focus of the problems bedeviling their own country.
If a country is going through financial difficulty, there are several steps they can take including:
- Reducing spending
- Delaying interest payments
- Using cash reserves
If a country sees that its taxes will not be enough to cover its obligations, it can reduce the amount it spends on goods and services so as to reduce its obligations.
Country can also increase the time taken to pay off debts so that they can divert cash to needed areas whilst waiting for things to be better.
Country can use cash reserves that it accumulated in one form or the other to weather the storm of reduced taxes.
In conclusion, the government can deal with tax shortage in several ways.
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Answer:
False
Explanation:
The first part was true. A higher WACC results in a lower NPV simply because a higher discount rate results in a lower present value.
E.g. 100 / (1 + 6%)³ = 83.96, but if we increase r to 10%, then 100 / (1 + 10%)³ = 75.13
The second part is wrong because under the IRR method, the decision rule is very simple, all projects are accepted if their IRR is higher than the project's WACC (or discount rate). I.e. if hte project's WACC increases, so does the chance of the project being rejected because the IRR might be lower than the WACC.
Answer:
forecast on equipment usuge by a Dry cleaner
Explanation: For Sept 88,91,94 and 97
october-94,97,
