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4 years ago

Which of the following choices concerning the recognition of interest income for corporate bondare CORRECT?

Business

1 answer:

kumpel [21]4 years ago

7 0

Answer:

The correct answers are letters "A", "B", and "C".

Explanation:

Corporate bonds are securities that firm issues to be sold to investors to raise funds that will be using to keep the company up and running. Investors profit from the interest rate dealt in the bond agreement or sometimes they obtain physical assets of the organization as collateral. If in the secondary market bonds are issued at a premium, the premium can be amortized or applied to the bond base but if the bonds were issued at a discount, discount bond rules take into place. The interest payment received thanks to the bonds are recorded in the gross income.

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PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and bra

KengaRu [80]

Answer:

For Break Even Point

Oil Change: $ 210,000

Brake repair: $ 90,000

For target profit

Oil Change: $ 350,000

Brake repair: $ 150,000

Explanation:

Now, we solve for

the target mix:

sales weight times contribution ratio

0.70 x 0.20 + 0.30 x 0.4 = 0.26

Now we solve the break even point for each service outlet:

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

Oil Change: 78,000 / 0.26 = 300,000 sales revenue

we multiply by the weight to know eahc type of serivce sales revenue

Oil Change: $ 300,000 x 0.7 = $ 210,000

Brake repair: $ 300,000 x 0.3 = $ 90,000

Now we solve for target profit:

(78,000 + 52,000) / 0.26 = 500,000

Oil Change: $ 500,000 x 0.7 = $ 350,000

Brake repair: $ 500,000 x 0.3 = $ 150,000

6 0

3 years ago

involves defining and documenting the features and functions of the products produced during the project as well as the processe

Sav [38]

Answer:

The correct answer is d. Collecting requirements.

Explanation:

The requirements include the quantified and documented needs, wishes and expectations of the sponsor, the client and other stakeholders.

They must be formally documented and formally approved.

This process allows managing the expectations of the interested parties and documenting the needs to turn them into project requirements.

It provides the basis for defining and managing the scope of the project, including the scope of the product.

5 0

3 years ago

The cross-price elasticity of demand measures the absolute change in the quantity demanded of one good divided by the absolute c

lisov135 [29]

Answer:

percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.

Explanation:

Demand cross-elasticity is the measure of the relative change in the quantity demanded for a good or service (A) as a function of a certain relative change in the price of another good or service (B) considered to be a substitute for or complementary to the first (A). For example, how much would increase the amount of margarine demanded if there was an increase in the price of butter. The formula for calculating the cross elasticity of demand consists in dividing the relative change in the quantity demanded of a good divided by the relative change in the price of the substitute good.

7 0

3 years ago

The following inventory was available for sale during the year for Dolphin Tools: Beginning inventory 10 units at $120 First pur

vaieri [72.5K]

Answer: $4,950

Explanation:

If the company is using the First In First Out method for Inventory valuation then the earlier inventory is sold off first which would mean that the inventory at year end will be the more recent inventory.

The 25 units at the end of the year will be the most recent units purchased and so will be;

20 units from the third purchase

5 units from the 2nd purchase

Inventory value = (20 * 195) + ( 5 * 210)

= $4,950

The options are not for this question.

8 0

3 years ago

Roberts Corp. reports pretax accounting income of $208,000, but due to a single temporary difference, taxable income is only $15

goblinko [34]

Answer:

The answer is given below;

Explanation:

Temporary Difference $208,000-$154,000=$54,000

Taxable Temporary Difference=$54,000*25%=$13,500

Current Tax Expense =154,000*25%=$38,500

Please note that taxable temporary difference result in deferred tax expense and corresponding effect in deferred tax liability.

Deferred Tax Expense Dr.$13,500

Current Tax Expense Dr.$38,500

Deferred Tax liability Cr.$13,500

Current Tax Liability Cr.$38,500

6 0

4 years ago