Answer:
The required adjusting journal entry on December 31 includes a:
Debit Insurance Expense $400
Credits Prepaid Insurance $400
Explanation:
On Dec. 1, a 12-month insurance policy was purchased and paid in advance for $4,800. The company records the insurance as the prepaid Insurance:
Debit Prepaid Insurance $4,800
Credit Cash $4,800
On December 31, the last day of the following 1 months, the company records an adjusting entry that Credits Prepaid Insurance for $400 ($4,800 divided by 12 months times the 1 months that will be prepaid as of December 31) and Debits Insurance Expense for $400
Debit Insurance Expense $400
Credits Prepaid Insurance $400
Answer:
The Production Possibilities Curve (PPC) is a model that captures scarcity and the opportunity costs of choices when faced with the possibility of producing two goods or services. Points on the interior of the P PC are inefficient, points on the P PC are efficient, and points beyond the PPC are unattainable
Explanation:
Answer: A. decreases as the required rate of return increases
Explanation: The net present value decreases as the required rate of return increases. The net present value is often employed by Chief Financial Officers (CFOs) as a method of investment analysis and as an evaluation method for capital expenditures to analyze the profitability of a projected investment or project. It is defined as the difference between the present values of cash inflows and cash outflows both positive and negative, over a period of time (or over the entire life of an investment discounted to the present.
Answer:
$6,989.25
Explanation:
The Lexington Property Development shall calculate the today's worth of note receivable, which is due in three years, using the following mentioned formula:
F=P(1+i)^n
F=Value of note receivable after three years=$10,000
P=Value of note receivable today=?
i=interest rate compounded monthly=12%/12=1%
n=Due period of note receivable=3*12=36 months
F=P(1+i)^n
$10,000=P(1+1%)^36
P=10,000/(1+1%)^36=$6,989.25
Answer:
The statement is True.
Explanation:
The airline company should not sell a ticket for less than $600 because, it costs $120,000 to fly a 200 seats plane which means cost per seat is $600 ($120,000/200 seats). Selling the ticket for less than $600 will result in a loss for the airline company. If the price for a seat in a plane is set more than $600 will be beneficial for the company.