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olga_2 [115]
4 years ago
8

Minnetonka Company leases an asset. Information regarding the lease:

Business
2 answers:
emmainna [20.7K]4 years ago
6 0

Answer:

D) Finance.

Explanation:

In a financial lease, the lessee must include the leased asset in its balance sheet. Even though the title of the leased asset is transferred after the lease term is over, the lessee must consider the leased asset as its own. The lessee even has to depreciate the leased asset in the same way as it treats similar assets owned by the company.

While the lessee depreciates the leased assets, the lessor must amortize them.

wariber [46]4 years ago
4 0

Answer: The options are given below:

A. Short term.

B. Operating.

C. Long

D. Finance.

The correct option is D. Finance.

Explanation: A finance lease is the kind of lease in which a finance company is the legal owner of the asset throughout the duration of the lease, while the lessee has both operating control over the asset, and some share of the economic risks and returns from the change in the valuation of the underlying asset.

In a finance lease agreement, ownership of the property is transferred to the lessee at the end of the lease term.

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"Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, t
fenix001 [56]

Answer:

A.57.9%

Explanation:

Return on Assets (ROA) measures how effective a business generates income from its total assets. It is calculated from the net income and total assets using the following formula;

Return on assets (ROA ) = Net income / Total assets

Net income = 275,000

Total assets = 475,000

ROA = 275,000 / 475,000

= 0.5789 or 57.9%

8 0
3 years ago
Katz is an all-equity development company that has 52,000 shares of stock outstanding at a market price of $32 a share. The firm
PolarNik [594]

Answer:

Explanation:

Share repurchased = 176,000/ 32 = 5,500

Value of Equity = (52,000 - 5,500) x 32 = 1,488,000

Value of debt = 176,000

Debt Ratio = 176,000/ (176,000 + 1,488,000) = .10576

Leslie needs to reduce its investment in the firm by 10.576%

Leslie will sold stocks = .10576 x 500 = 53 shares

Therefore, Leslie need to Sell 53 shares and loan out the proceeds.

8 0
3 years ago
Which of the following statements is correct? A. Control is most effective when two or three people are given responsibility for
Furkat [3]

Answer:

"B"

Explanation:

Segregation of duties is a major international control procedure where responsibilities are shared between two or more individuals.

The aim is to minimize or prevent the opportunity for a particular individual to  execute and cover up fraudulent activities.

It is arranged in a way that an individual is in the position to keep a check over the activities of the other party.

3 0
3 years ago
Jamie and Maria invested all their savings in a small pizzeria they opened outside the University of Western Kentucky. They oper
Anika [276]

Answer:

A) Lose their personal assets as the result of their company's financial problems

Explanation:

One of the main disadvantages of general partnerships is that the partners have unlimited liability for the debts and obligations of the partnership. The partnership ans the partners are not considered separate entities, therefore any remaining debt from the partnership passes to the partners.

7 0
3 years ago
The name of Internet Web sites are referred to as their _____ name.<br>its domain
Alja [10]

Answer:

Domain names . good luck ;)

7 0
3 years ago
Read 2 more answers
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