Answer:
c. Whether the gift was reasonable in the circumstances.
Explanation:AICPA(American institute of certified public accountants) is a body who is saddled with the responsibility of ensuring ethics in the public accounting profession. AICPA is present in most parts of the world, it guides and ensures that its members perform their accounting functions with the most ethical standards,in order to preserve the integrity of the certified public accountants,the AICPA has certain code of professional conduct which helps to streamline the functions its members all over the world.
Answer: b. Remain constant
Explanation:
Fixed costs as the term implies, do not change depending on the units produced or sold but rather remain constant over the period. If the company sells 2,000 or 5,000 more units, the fixed costs will remain constant.
For instance, if the rent of the selling warehouse is $4,000 per month and the company stores and then sells any number of units, they will still pay $4,000 regardless.
Answer: D
Explanation: A capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately from capital structure decisions. In reality, these decisions may be highly interwoven. This interweaving is most apt to result in firms accepting some negative NPV all-equity projects because changing the capital structure adds enough positive leverage tax shield value to create a positive NPV.An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.
In theory, debt financing offers the lowest cost of capital due to its tax deductibility. However, too much debt increases the financial risk to shareholders and the return on equity that they require. Thus, companies have to find the optimal point at which the marginal benefit of debt equals the marginal cost. As it can be difficult to pinpoint the optimal structure, managers usually attempt to operate within a range of values. They also have to take into account the signals their financing decisions send to the market.
A company with good prospects will try to raise capital using debt rather than equity, to avoid dilution and sending any negative signals to the market. Announcements made about a company taking debt are typically seen as positive news, which is known as debt signaling. If a company raises too much capital during a given time period, the costs of debt, preferred stock, and common equity will begin to rise, and as this occurs, the marginal cost of capital will also rise.
To gauge how risky a company is, potential equity investors look at the debt/equity ratio. They also compare the amount of leverage other businesses in the same industry are using on the assumption that these companies are operating with an optimal capital structure—to see if the company is employing an unusual amount of debt within its capital structure.
Answer:
Accumulated Depreciation As of December 31, 2010 = $105,000
Explanation:
<em>Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.</em>
<em>Annual depreciation:</em>
= (cost of assets - salvage value)/ 5 years
= (180,000 -30,000)/5
=.$30,000
<em>From July 1 2007 to December 31 2010 = 3 years 6 months = 42 months</em>
So total accumulated depreciation at the end of 3 years 6 months :
= ( 30,000/12) × 42
= $105,000
Accumulated Depreciation As of December 31, 2010 = = $105,000
<span> in the context of the promotional mix, the in-flight magazine is being used for Advertising
Advertising is a visual or audio form of communication that is used to promote a certain product. When several companies pay Skyairline to put and promote their products on the skyairline magazine, the magazine serves as an advertising medium for them.</span>
