Answer:
The proper amount of expenses to be included in the income statement for the year is $6,650
Explanation:
The computation of the expense amount which is included in the income statement is shown below:
= Repair expenses + electricity bill + insurance expense
= $4,650 + $800 + $1,200
= $6,650
The insurance expenses are given for the three months but we have to calculate for the 2 months only
So for two months = $1,800 × 2 ÷ 3 = $1,200
And, the wages are given for the last year which is not included in the income statement as it shows outstanding wages. So, we do not consider it.
Smart cards replace the typical magnetic strip on a credit or debit card with a microprocessor.
Smart cards are an EFT tool combining all of a persons information for approval of use of the card without signing for each purchase. This type of card has a chip to stick into the machine instead of using the strip to slide and then sign for the purchase.
Answer:
The present value of the cashflows will be $12830.30
Explanation:
The present value of the cashflows can be calculated by dividing the cash flows by the appropriate discount rate and for the appropriate time period.
The present value of the given cash flows will be,
Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n
As the first payment is received today, it will already be in the present value so it will not be discounted.
Present value = 2000 + 3000 / (1+0.1) + 5000 / (1+0.1)^3 + 7000 / (1+0.1)^5
Present value = $12830.295 rounded off to $12830.30
Answer: Rejection-then-retreat approach.
Explanation: The musical equipment salesman is using the Rejection-then-retreat approach to sell his musical items. This method is used to frighten the customers with higher priced items then make them settle for lesser priced items.
The appropriate response is Daily Compounding. Progressive accrual is the expansion important to the key total of an advance or store, or as it were, enthusiasm on intrigue. It is the aftereffect of reinvesting premium, instead of paying it out, so that enthusiasm for the following time frame is then earned on the chief total in addition to the already gathered premium.
