Answer:
The present value = $3,602.30
Explanation:
To calculate this, we will use the formula for calculating the future value for an amount invested, compounded semiannually at a certain interest rate. This is done as follows:
where:
FV = Future value = $4,500
PV = Present value = ??
r = interest rate = 4.5% = 4.5/100 = 0.045
n = number of compunding period per year = semiannually = 2
t = time = 5
Therefore, the present value = $3,602.30
Answer:
the ending balance of the unearned revenue is $3,225
Explanation:
The computation of the ending balance is shown below:
= Amount received from the customer for performing the future service + balance in the account
= $500 + $2,725
= $3,225
Therefore the ending balance of the unearned revenue is $3,225
The above formula should be applied
Answer:
this situation can be classified as an duopoly
Explanation:
An duopoly is similar to a monopoly but instead of only supplier there are two suppliers that share total market power and control. Both companies also offer basically the same product or service. Competition exists between the companies but it is not significant, both companies decide to coexist. Customers are forced to choose between one company or the other.
In this case, there are only two taxi companies and the customers really don't care what company they use since they both offer similar services. None of the companies even bothers to offer a better service to try to gain a larger market share.
Answer:
c) There are no guaranteed investments.
Explanation:
Although all statements are mostly true, the c) answer describes the challenge of investing in the simplest way possible.
The guarantee of investments is not discrete, meaning <u>an investment can never be 100% or 0% guaranteed.</u> Investments are always associated with a certain amount of risk, as numerous factors are always influencing its outcome. Therefore, we can differ only high-risk, low-risk and medium-risk investments.
Answer:
The correct option will be option B.
Dr Accounts Receivable $100
Cr Service Revenue $100
Explanation:
The reason is that the service was delivered and the money was received at just after the service delivered (the same day). So there is no need to pass the entry which includes cash received against receivables because here the cash received is because we have delivered services no because of any amount receivable.
So the entry that must be passed:
Dr Cash $100
Cr Service Revenue $100
And what we have done is:
Dr Cash $100
Cr Accounts Receivables $100
The correct entry would be removal of the effect of decrease in receivable which must be increased and increase in revenue which has not been recognized.
So the entry is that will correct the books of accounts will be:
Dr Accounts Receivables $100
Cr Service Revenue $100