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3 years ago

The omission of the adjusting entry to record depreciation expense will result in an

Business

1 answer:

Gemiola [76]3 years ago

6 0

Answer:

B.overstatement of assets and an overstatement of owners' equity.

Explanation:

To recognize depreciation expense,the entries required are

Debit depreciation expense

Credit Accumulated depreciation

The accumulated depreciation is a credit balance in the fixed asset account. Depreciation is also an expense that reduces net income and thus reduces the owners equity.

Hence an mission of the adjusting entry to record depreciation expense will result in an overstatement of assets and an overstatement of owners' equity.

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Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will inc

NemiM [27]

Answer:

Price of stock = $44.05

Explanation:

The price of a share can be calculated using the dividend valuation model

According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.

To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.

The formula below would help

PV = G× (1+r)^(-n)

PV = Present Value, r required rate of return - 10%, n- the year, G- dividend payable in a particular year

Year PV of dividend

1 2+6 ×× 1.1^-1 = 7.27

2 10 × 1.1^-2 = 8.26

3 12× 1.1^-3 = 9.02

4 14 × 1.1^-4 =9.56

5 16 × 1.1^-5 = 9.93

Total Present Value of dividend = 7.27 + 8.26 +9.02 +9.56 +9.93 = 44.05

Price of stock = $44.05

Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?

Answer:

Price of stock = $44.05

Explanation:

The price of a share can be calculated using the dividend valuation model

According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.

To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.

The formula below would help

PV = G× (1+r)^(-n)

PV = Present Value, r required rate of return - 10%, n- the year, G- dividend payable in a particular year

Year PV of dividend

1 2+6 ×× 1.1^-1 = 7.27

2 10 × 1.1^-2 = 8.26

3 12× 1.1^-3 = 9.02

4 14 × 1.1^-4 =9.56

5 16 × 1.1^-5 = 9.93

Total Present Value of dividend = 7.27 + 8.26 +9.02 +9.56 +9.93 = 44.05

Price of stock = $44.05

7 0

3 years ago

Suppose the U.S. and Japan both produce airplanes and televisions and the U.S. has a comparative advantage in the production of

EastWind [94]

Answer:

d. both countries, as whole, will be better off.

Explanation:

When countries leverage on their comparative advantages, they will be better off. In this instance as US has comparative advantage in producing airplanes, it will be more cost effective for them to produce and export to Japan.

So also Japan will find it cheaper to produce televisions and export to the US. Both contries reduce cost by producing goods they have comparative advantage in.

6 0

3 years ago

During the year, total liabilities increased $105,000 and stockholders’ equity decreased $83,000. What is the amount of total as

ella [17]

Answer: 22,000.

Explanation: 105,000-83,000 Is 22,000

7 0

3 years ago

If actual output exceeds potential output, the economy: Multiple Choice is experiencing an inflationary gap. is in neither a sho

jolli1 [7]

Answer:

Is experiencing an inflationary gap.

Explanation:

An inflationary gap can be defined as a macroeconomic concept which measures the difference between the actual output (Real Domestic Products) and the potential output (Gross Domestic Products) when an economy is being operated at full employment.

Hence, if actual output exceeds potential output, the economy is experiencing an inflationary gap. This simply means that, the consumers are demanding more of the goods and services than the economy (business entities) can produce or provide at a specific period of time. <em>Also, when an inflationary gap occurs in an economy, there would be an increase in the price of goods and services and thus, causing the economy to be out of equilibrium. </em>

8 0

3 years ago

What is the approximate future value of $1,000 compounded at 10% interest (end of period) over a three-year period

Ahat [919]

The future value for annuity is $3030.

<h3>What is future value of an annuity?</h3>

The worth of a series of recurrent payments at a specific future date, assuming a specific rate of return, and discount rate, is the future value of the annuity. The future value of the annuity increases with the discount rate.

Some key features of future value of annuity are-

A approach to determine how much money a stream of payments will be worth at some future date is to determine future value of an annuity.
A present value of an annuity, on the other hand, calculates how much cash will be needed to provide a series of future payments.
Payments are made in a typical annuity at the conclusion of each predetermined time frame.
Payments are made at the start of each period in an annuity payable.

The formula for future value of annuity are-

F.V = P× $\frac{\left((1+r)^{n}-1\right)}{r}$

F.V = future value of annuity

P = Initial deposit; $1,000

r = rate of interest; 10%

Substitute the given values in the formula;

F.V = 1,000× $\frac{\left((1+0.01)^{3}-1\right)}{0.01}$

= 1,000×3.03

F.V = 3030

Therefore, the future value of the annuity of the deposited amount of $1,000 is $3030.

To know more about future value of annuity, here

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5 0

2 years ago