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3 years ago

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

Business

1 answer:

kumpel [21]3 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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The aggregate supply curve normally a. slopes downward and to the right due to higher resource prices. b. has a horizontal slope

8090 [49]

Answer:

The answer is: D) slopes upward to the right due to short-run fixed costs of production.

Explanation:

In the short run, companies have fixed factors of production: prices, wages, and capital. In the short run, aggregate supply curve shows the correlation between the price level and output (normal supply curve). Only in case of a production increase due to technological improvements or other factors (decreasing input prices, etc), may the aggregate supply curve shift outward.

7 0

3 years ago

How to calculate cost of sales and gross profit

marin [14]

<h2>Answer:</h2><h2>Answer:Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales)</h2>

4 0

2 years ago

The purchasing power of money and the price level vary: Group of answer choices inversely. directly during recessions, but inver

Kamila [148]

Answer:

Option "Inversely" is correct.

Explanation:

Option “Inversely” is correct because the increase in price level exhibits inflation and a rise in inflation decreases the purchasing power of money. However, if the price level decreases or inflation decreases, then the purchasing power of money increases. Therefore we can see that increase in price level decreases the purchasing power and a decrease in price level increases the purchasing power. Therefore, there is an inverse relationship.

5 0

3 years ago

Gradwell, Inc., manufactures and sells two products: Product K8 and Product I4. Data concerning the expected production of each

lisabon 2012 [21]

Answer:

Gradwell, Inc.

The overhead applied to each unit of Product I4 under activity-based costing is closest to:_______.

$243.00 per unit.

Explanation:

a) Data and Calculations:

production per unit DL rate Total Labor Cost

product K8 300 5.0 1,500 $17.20 $25,800

product I4 900 3.0 2,700 $17.20 $46,440

total direct labor hours 4,200 $17.20 $72,240

production per unit Direct Materials Total Material Cost

product K8 300 $150.20 $45,060

product I4 900 $243.70 219,330

Total direct materials costs = $264,390

Estimated Expected activity

Activity Cost Pools Activity Measures Overhead Product Product Total

Cost K8 I4

labor related DLHs $176,064 1,500 2,700 4,200

machine setups setups 71,290 400 600 1,000

order size MHs 121,396 4,300 4,600 8,900

Total $368,750

Overhead Cost Allocation Product Product Total

K8 I4

Labor cost $62,880 $113,184 $176,064

Machine setups 28,516 42,774 71,290

Order size 58,652 62,744 121,396

Total $150,048 $218,702 $368,750

Quantity 300 900

Overhead per unit $500.16 $243.00

4 0

2 years ago

From the information given below construct a cash budget for five months period starting form May 20X1 till September. MONTH AND

Alenkinab [10]

Answer:

Cash Surplus May $83,300 June $ 61,600 July $33,000

Aug $25,500 Sept $ 3650

Explanation:

MONTH AND YEAR PROJECTED SALES FIRST MONTH

COLLECTIONS (80%)

April 20X1 $ 140,000 112,000

May 20X1 130,000 104,000

June 20X1 90,000 72,000

July 20X1 65,000 52,000

August 20X1 84,000 67,200

September 20X1 95,000 76,000

October 20X1 160,000 128,000

November 20X1 200,000 160,000

December 20X1 240,000 192,000

January 20X2 190,000 152,000

First we find the monthly cash collections 80 % in the month of sales , 10% in the second month , 5% in the third and 5 % in the fourth . We have summed them up in the following table.

Sales Collections

MAY JUNE JULY AUGUST SEPT

Particulars

1st Month 104,000 72,000 52,000 67,000 76,000

Collections

2nd Month 14,000 13,000 9000 6500 8400

3rd Month 7000 6500 4500 3250

4th Month 7000 6500 4500

Total

Collections 118,000 92,000 74,500 84,500 92,150

Now we prepare the cash budget deducting payments from collections and maintaining beginning and ending balance.

Cash Budget

MAY JUNE JULY AUGUST SEPT

Particulars

Opening 10,000 10,000 10,000 10,000 10,000

Add Total

Collections 118,000 92,000 74,500 84,500 92,150

Less Closing 10,000 10,000 10,000 10,000 10,000

Less Payments34,700 30,400 41,500 59,000 88,500

 Cash Surplus 83,300 61,600 33,000 25,500 3650

4 0

3 years ago