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IrinaK [193]
3 years ago
11

What is the term called when a company pays for a set of assets that is worth more than their company’s worth if they liquidised

all their assets and paid back all their liabilities(Book Value)?
Is it called ‘impairment’?
Business
1 answer:
andriy [413]3 years ago
5 0

Offsetting Assets and Liabilities  is when a company pays for a set of assets that is worth more than their company’s worth if they liquidised all their assets and paid back all their liabilities(Book Value)

<u> Explanation: </u>

A firm who wants to restructure and to infuse further finance into the business they will go for the above said option stated in the question. The   term offsetting of assets and liabilities is being used to refer for the above mentioned transaction in the question.

According to the accounting principle the company will sell of his assets which is more than the company’s worth will pay off their liability simultaneously and then they proceed for the restructuring of finance. This way it will help them to minimise their debt and the firm can declare it a debt free company.

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A large increase in the supply of hd-tv sets occurs simultaneously with a smaller decrease in its demand. as a result the equili
zhenek [66]
The answer to this question is :<span>decrease, increase
When Demand decreases, it indicates that consumer now is less willing to buy that certain products.
This unwillingness will started to drives the price down. During this period, Sellers will start to create more effort to sell the remaining products so they could obtain the highest price possible</span>
7 0
3 years ago
Which psychologist might work as a consultant for a large financial services company?
rodikova [14]

Answer:

An industrial organizational psychologist

Explanation:

Industrial-organizational psychologists are using psychological concepts and techniques of study to address business challenges and improving the quality of life. They are studying efficiency and managerial staff in the work environment, and working designs for employees.

They get a look for a firm or institution's cohesion and character.And they are working with executives to help coordinate strategies, perform assessments so practice sessions, and establish a future plan.

5 0
4 years ago
"The net present value of the investment, excluding the annual cash inflow, is −$403,414. To the nearest whole dollar how large
nadezda [96]

Answer: c. $81,202

Explanation:

The inflow will be annual and constant which makes it an annuity. Given the discount rate of 12% and a useful life of 8 years, the present value interest discount factor based on the table is = 4.968.

Option 1 present value

= 48,410 * 4.968

= $240,500.88‬

Option 2 present value

= 50,427 * 4.968

= $250,521.34

Option 3 present value

= 81,202 * 4.968

= $403,412

Option 3 is the closest option with the difference being down to rounding errors. The annual inflow would have to be $81,202 to make the investment in the equipment financially attractive.

4 0
3 years ago
Which recommendation would be most suitable for a 40-year old client whose main objective is retirement income and preservation
melisa1 [442]

Answer:

Fixed deferred annuity

Explanation:

Fixed deferred annuity is a form of saving investment where interest is paid on the invested amount at a rate set by the investment company and defined in the contract , and the interest can be deferred into the future till a withdrawal is made from the annuity contract.

Taxes are not paid but deferred until withdrawal which allows the opportunity to  control when to pay taxes , a good investment sense for long term investment.

This makes it a good investment for a risk adverse investor who will not require investment income until later years but its main goal is retirement income and preservation of capital.

5 0
3 years ago
Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevan
kipiarov [429]

Answer:

The Journal entry is as follows:

Construction in progress A/c   Dr. $950,000

Cost of construction A/c           Dr. $1,600,000

To revenue from long term contracts                       $2,550,000

(To record the revenue in 2018)

Workings:

Cost of construction:

= cost of 2017 + cost of 2018

= $1,100,000 + $500,000

= $1,600,000

4 0
3 years ago
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