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3 years ago

Which of the following is included in the cost of constructing a building?

Business

1 answer:

Sloan [31]3 years ago

7 0

Answer:

The correct answer is (A)

Explanation:

Construction business is one of the difficult and risky businesses to do. There are many costs involved while constructing a building. Insurance cost during construction is important to take care of third party injuries, and it also provides financial coverage regarding property damage. In a construction business, a company is only allowed to start construction after they cover their insurance cost.

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During 2018, its first year of operations, Pave Construction provides services on account of $154,000. By the end of 2018, cash

seraphim [82]

Answer:

Bad debts expenses Debit $ 11,750

Allowance for uncollectible receivables Credit $ 11,750

Explanation:

The allowance for uncollectible accounts receivables balances are calculated as a percentage of the receivable balance.

The receivable balances as at December 31, 2018 is

Services provided on account $ 154,000

Cash collections received $ 107,000

Receivables from services uncollected $ 47,000

Estimated percentage considered uncollectible 25 %

Allowance for uncollectible accounts $ 47,000 * 25 % = $ 11,750

6 0

3 years ago

When Sandra and Charles Givens were divorced, the court ordered a division of property and awarded Sandra $65,000. The award was

taurus [48]

Answer:

Yes, it is a binding contract.

Explanation:

A contract is a legal binding agreement between two or more parties at the court of law. The agreement could be in terms of money, services, right or duties between the parties involved.

Since a consent has been reached between the two parties before the judge, Charles would pay the sum in the stipulated manner. The acceptance of the offer of payment by Sandra made it a binding contract for Charles, so he is bound by this service until he pays the full amount to Sandra.

3 0

3 years ago

Tobang Company is in the process of setting its target capital structure. The CFO believes the optimal debt ratio is somewhere b

Alex787 [66]

Answer:

The Ideal Capital structure is approximately 20% of Debt and 50% of Equity. Thus, Optimal Capital Structure of Tobang Company is 40:60.

At 40% debt ratio the company’s Weighted Average Cost of Capital (WACC) is minimized.

Explanation:

3 0

3 years ago

What’s a industry-wide sales volume? What’s the different of dollars and units?

vaieri [72.5K]

Answer:

What’s a industry-wide sales volume?

It is a measurement of the average of money and units sold showing the size of an specific industry.

What’s the different of dollars and units?

The expresion in dollars shows the economic variatoion of the industry and in units shows how the production is growing or reducing.

4 0

3 years ago

1. The firm's target capital structure should be consistent with which of the following statements? Maximize the earnings per sh

inessss [21]

Answer:

Minimize the weighted average cost of capital (WACC).

Explanation:

The weighted average cost of capital (WACC) is the interest rate at which a company leverages its activities. The WACC includes the cost of debt (i.e. bonds and loans) and equity (i.e. common stock and retained earnings). It is calculated by multiplying each capital source by its interest rate and then adding the results.

A company should try to have the lowest WACC possible, since a lower interest rate equals higher profits.

6 0

3 years ago