Answer:
Explanation:
Economic Darwinism explains why some inefficient accounting practices persist. Inefficient accounting systems may continue to exist either because they have proved better than other systems or because better systems have not been yet discovered.
Answer:
The correct answer is C.
Explanation:
In the inventory of a company, when it is on the balance sheet date, goods in transit purchased at an f.o.b. shipping point must be included.
Goods in transit are goods that are not physically in the warehouse but have already been paid for by the company. This already acquired merchandise is property of the company, only that its arrival is only waited for to the deposit.
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Answer:
1. $33.33 million
2. $40.00 million
Explanation:
The computation of the value of Milton Industries with leverage is shown below:-
Value of Milton Industries without leverage is
= Free cash flow ÷ unlevered cost of capital
= $5 million ÷ 0.15
= $33.33 million
Value of Milton Industries with leverage is
= Value of Milton Industries without leverage + Tax × Debt
= $33.33 million + 0.35 × $19.05 million
= $40.00 million
Therefore we have applied the above formula.
Answer:
A credit to Deferred subscription revenue for $15,000
Explanation:
Answer:
Economist A
Explanation:
Elasticity is a measure of investment sensitivity. If the investment is elastic, a slight increase in price (interest rate) will decrease the amount of investment. Conversely, if the investment is inelastic, a change in interest rates will not considerably affect the investment rate. The calculation of elasticity consists of the change in the investment rate divided by the change in the interest rate. If the calculation of elasticity is less than 1, it is considered ineastic, while investments with elasticity above 1 are considered elastic. Thus, economist A believes that the investment rate is elastic to the interest rate, while economist B believes the opposite. So for economist A the rise in interest rates will affect the investment rate of the economy (and hence the macroeconomic environment) because in his view investment is elastic. Economist B does not believe that interest rate fluctuations will affect demand for investments.
