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3 years ago

The historical cost concept reflects the fact that financial accounting practice favors:________.

Business

1 answer:

Aliun [14]3 years ago

6 0

Answer:

Reliability over relevance

Explanation:

The historical cost principle states that assets must be recorded at purchase cost, disregarding any change in their market value. E.g. you purchased a land lot 10 years ago for $100,000 and now it is worth $500,000. It must be recorded at $100,000 since that was its original purchase cost.

Accounting tries to be as exact as possible, and if the carrying values started to change every period or even month by month because the accountant believed that the market value changed, then it would be a mess. Accountancy is not supposed to be a game of guessing, it is supposed to be as exact and reliable as possible.

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Deployment Specialists pays a current (annual) dividend of $1.00 and is expected to grow at 20% for 2 years and then at 4% there

Whitepunk [10]

Answer:

$30.80

Explanation:

Intrinsic value

V0=D1/1+k +D2/(1+k)^2 +DH+PH/(1 +k)^H

Let plug in the formula

First step

V0=$1 × 1.2/(1+0.085) +($1 × 1.2)^2/(1+0.085)^2 +($1 × 1.2)^2*1.04/(0.085-0.04)*(1+0.085)^2

Second step

V0=1.2/1.085+1.44/1.007225+1.44*1.04/0.045*1.177225

Third step

V0=1.2/1.085+1.44/1.007225+1.4976/0.052975

Fourth step

V0=1.10599+1.42967+28.26993

V0=$30.80

Therefore the intrinsic value of its stock will be $30.80

4 0

3 years ago

Kyle and Lyle want to pool their inheritance money to make a joint investment. They are young and are willing to accept moderate

katrin [286]

Answer:

B) Mutual funds and stocks

Explanation:

The best option for Kyle and Lyle is to invest in stocks and mutual funds. If your investment will last several years, stocks are your number one choice. The stock market yields the highest rates of return in the long run and its risk is not that high. Mutual funds also basically invest in the stock market, although they diversify with other securities (specially bonds) in order to reduce risk.

Futures are very risky, and they usually involve short term investments. You can a lot of money, but you can also lose a lot of money.

3 0

4 years ago

Which of the following budgets

Vikki [24]

The bottom one because equal is balanced

5 0

3 years ago

Colorado economy: the annual business report (1993-1994) indicates that for the past decade the cattle ranching industry in colo

alexdok [17]

Answer:

The colorado ranching is not expanding

Explanation:

The null hypothesis, H₀ : μ = 2.7 billion

Alternative hypothesis, Ha : μ > 2.7 billion

$\bar{X} = 2.85 billion$

$\sigma = 0.55 billion$

n = 30

The observed test statistic,

$t_{o} = \frac{\bar{x}- \mu}{\frac{\sigma}{\sqrt{n} } }$

$t_{o} = \frac{2.85- 2.7}{\frac{0.55}{\sqrt{30} } }\\t_{o} = 1.494$

Degree of freedom = n-1 = 30 -1 = 29

Significance level = 0.05

For the critical value, we check the t - table at 0.05 significance level

$t_{crit} = t_{\alpha, df} = t_{0.05, 29} \\t_{crit} = 1.699$

$t_{0} = 1.494\\t_{crit} = 1.699$

Since $t_{0}$ , we will accept H₀

That is the mean total cash receipt is 2.7 billion and the colorado ranching is not expanding

5 0

3 years ago

Which is a certificate of debt issued by corporations and governments?

IgorLugansk [536]

I believe the correct answer from the choices listed above is option 2. A certificate of debt issued by corporations and governments is called a bond. It is a document that states the details of the bond including the bond issuer's name, the bond par value or face amount, the interest rate, and the maturity date. Hope this answers the question.

3 0

3 years ago

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