Answer:
B. Prepaid insurance is shown on the income statement
Explanation:
Prepaid insurance first and foremost is a current asset and as such will not reflect in the income statement but in the statement of Financial Position or Balance Sheet.
Although, prepaid insurance will be shown as paid within the year, it must be deducted from the insurance premium paid for the current year and then reported in the balance sheet as a current asset.
Prepaid insurance is treated as a current asset because it is an indication of insurance premiums paid for by the company in advance. It is a payment for economic benefits that will be enjoyed in the future, therefore it is a current asset. The only part of an insurance premium that shows in the income statement is the insurance expense paid for insurance benefit enjoyed in the current period
Answer:
B. Journal entry-level
Explanation:
When using ABC, costs can be gathered at different levels. These levels are all of the following except "journal entry-level".
Therefore, costs can be gathered in Unit-level, Batch-level, Factory-level and even Product level.
Activity-Based Costing (ABC) is actually a costing method which tends to identify the activities that are carried out in organization and gives the costs of each activity to the products and services by what they actually consume.
Answer:
bondholders will receive 8% of $1,000 = $80
Explanation:
The price of the bond varies depending on the yield to maturity, resulting in higher or lower gains for bondholders, but the actual cash amount received will always be equal to the coupon rate.
The same applies to the issuer of the bond, it may receive more or less money depending on the market rate, which increases or decreases interest expense, but the amount of money paid is always the coupon rate.
Answer:
P = $1790.01
Explanation:
Given data:
Borrowed money = $11,000
Number of installment = 10
Annual rate of interest = 10%
P = $627.45
PV of annuity is given as:
![PV of annuity = P*[\frac{(1-(1+r)^{-n})}{ r}]](https://tex.z-dn.net/?f=PV%20of%20annuity%20%3D%20P%2A%5B%5Cfrac%7B%281-%281%2Br%29%5E%7B-n%7D%29%7D%7B%20r%7D%5D)
P - Periodic payment
r - rate per period
n - number of periods
![11,000 = P*[\frac{(1-(1+0.1)^{-10})}{0.1}]](https://tex.z-dn.net/?f=11%2C000%20%3D%20P%2A%5B%5Cfrac%7B%281-%281%2B0.1%29%5E%7B-10%7D%29%7D%7B0.1%7D%5D)
P = $1790.01
Answer:
Option a ($325,203) is the right response.
Explanation:
The given values are:
Required Lump sum amount,
= $2,000,000
Future value of an annuity,
= 6.15
Now,
As we know,
The required amount of annual deposit will be:
= 
On substituting the given values, we get
= 
= 
i.e.,
= 
($)
