Answer:
The answer is "Option A"
Explanation:
RE stands for retained income, In this system also requires the net income to be used in the accounting and cash flows, while the statement of money flow, which is not released as dividends of shareholder value, is used instead for new investments within the company, and other options are were wrong that can be described as follows:
- Option B and option D are similar to each other because, both used for payment on personal and consumer loans, that's why it is not correct.
- In option C, It is used in the calculation, that's why it is not correct.
Answer:
1. WINFREY TOWING SERVICE
Statement of Comprehensive Income
$
Service revenue 10,800
Rent expense (550)
Salaries expense (1,900)
Dividends paid <u>(4,000)</u>
Net income <u> 4,350</u>
Statement of Retained Earnings
$
Retained earnings b/f 3,900
Add: Net income 4,350
Retained earnings c/f 8,250
2. Statement of retained earnings report changes in retained earnings of a company in a given accounting year.
Explanation:
In this question, we need to obtain the net income of the company, which is service revenue minus expenses minus dividend. Then, the statement of retained earnings is prepared by taking cognisance of the retained earnings brought forward and add the net income for the year.
Answer:
11.61%
Explanation:
First, find the annual percentage return (APR) of this annuity. Using a financial calculator, input the following;
Recurring payment; PMT = -450
Future value ; FV = 27,000
Duration of investment ; N = 4*12 = 48 months
One -time present value; PV = 0
then compute interest rate; CPT I /Y= 0.92% (this is monthly rate)
APR = 0.92*12 = 11.035%
Effective Annual Rate (EAR) formula is as follows;
EAR = (1+
) ^m -1
EAR = 1+
)^12 -1
EAR = 1.1161 -1
EAR = 0.1161 or 11.61%
Answer:
(D) The cyclical unemployment
Explanation:
Business activity is subject to the comings and goings of private initiative, so the expansion and recession phases of the economy affect the number of unemployed.
<u>Cyclical unemployment</u> increases considerably during times of recession, due to the deterioration of economic conditions; while decreasing in the stages of expansion, due to the improvement of the economy.
Governments try to reduce the incidence of this type of unemployment by softening the transition between different economic cycles. The objective is that the labor supply does not vary significantly between the stages of expansion and recession so that its demand is not excessively impaired.
Answer:
B. are primarily designed to protect bondholders
Explanation:
Protective covenants are designed primarily to protect bondholders from future actions of bond issuer. They are also part of a loan agreement that limits certain actions a company may take during the course of the loan to protect the person who lend the money interests. They provide extra protection for the investors. Creditors use it to protect their interests by restricting certain activities of the issuer that could endanger the creditor's interest.
