Answer:
A liability account in the balance sheet.
Explanation:
When rent is collected in advance, the entries required to be recognized at the point of collection is as follows;
Debit Cash account
Credit Unearned/Deferred rental revenue
The cash account is an asset while the Unearned/Deferred rental revenue is a liability account.
As such, the collection of rent in advance is A liability account in the balance sheet.
Answer: Option B
Explanation: In simple words, acceptance speech refers to the speech that is made by an individual generally after receiving award or similar honor as such.
In such a speech the receiving party shows gratitude and tries to connect with their audience by showing sentiments and proud of receiving the award. These speeches are usually very brief and to the point but sometimes an extension is made by the deceiving party, stating some past events or making motivational statements to the audience.
In the given case, Carlos revived the award and thanked the school authority. Hence from the above we can conclude that the correct option is B.
Answer:
1. Supply will decrease
Explanation:
Due to the basic economic principle that when supply superceeds the demand for goods and services, the prices of such goods and services fall. As a result of this, and an expected increase in future prices, the supply of coffee beans by coffee merchants to the markets will decrease.
This is because the merchants want to receive higher profits and to do so, they will withhold supply to sell in the next six months when the price is higher.
Answer:
The WACC of the firm is 11.91%
Explanation:
The WACC or weighted average cost of capital is the rate of return that a business is expected to pay to all of its security holders- bonds, common stock, preferred stock- or is the cost of capital for the business.
To calculate the WACC, we use the following formula,
WACC = D/A * (1-tax rate) * rD + E/A * rE
Where,
- D/A and E/A is the weightage of debt and assets as a proportion of total assets
- rD * (1-tax rate) is the after tax cost of debt
- rE is the cost of equity or required rate of return on equity
We first need to calculate the required rate of return on equity (r). We will use the CAPM formula for r.
r = 0.034 + 1.37 * 0.082
r = 0.14634 or 14.634%
The total assets are equal to,
Assets = Debt + Equity
If for every $1 of equity, there is $0.45 of debt as given by debt-equity ratio.
Then,
Assets = 0.45 + 1
Assets = $1.45
WACC = 0.45/1.45 * (1-0.23) * 0.076 + 1/1.45 * 0.14634
WACC = 0.11908 or 11.908% rounded off to 11.91%
Real GDP will increase ONLY WHEN OUTPUT INCREASES. Increase in GDP indicates economic growth. Real GDP is a measure of the economic output adjusted for inflation. GDP is very important because it can be used to estimate the value of total spending in an economy.
