Answer:
The answer is $788.12
Explanation:
Price of the bond is what the issuer will pay for the bond
The payment is semiannual.
Number of years (N) - 20 periods (10 years x 2)
Yield-to-maturity(YTM) - 7%( 14% ÷ 2)
Present Value(price of bond) = ?
Future Value(FV) = $1,000
Payment Coupon(PMT) = $50[(10% x $1000) ÷ 2]
Using a Financial calculator, price of the bond on semiannual basis is
$788.12
Answer:
$1,000
Explanation:
the journal entry to record the purchase of the goods should be:
January 27, merchandise purchased on account, credit terms 2/10, n/30
Dr Merchandise inventory 1,000
Cr Accounts payable 1,000
the journal entry to record the payment of the invoice 13 days later should be:
Dr Accounts payable 1,000
Cr Cash 1,000
since the discount period is over, the invoice should be paid at full amount
Answer:
option (a) is correct.
Explanation:
Economic profits refers to the profits which comes out after deducting the implicit costs and explicit costs from the total revenue.
Whereas the accounting profits takes into the effect of explicit costs only.
Implicit cost refers to the loss of money income by choosing some other alternative. It is also known as the opportunity cost.
Explicit costs refers to the costs that are incurred for operating or running a business.
Accounting profit = Total revenue - Explicit costs
Economic profit = Total revenue - Explicit costs - Implicit costs
Therefore, if the implicit costs are greater than zero then the economic profits is less than the accounting profits.
Managers, this is symbolic of how business is run in U.S. culture.
Answer:
The issue is whether Joe is liable to pay for Bob to Avarice Bank or not.
Joe should prevail.
Explanation:
The original contract is between bank and Bob and in that contract Joe is not involved. Secondly payment on someone' behalf always has to be a written contract.
According to UCC, suretyships have to be written for them to be enforceable. This is mentioned in Statute of Frauds. It clearly states that any gurantee by thrid party for payment of debts has to be in writing.
