Answer:
C. the less productive the process is.
Explanation:
Variability refers to the property when the given substance are highly probable to change and that the results accordingly change.
In that condition there is no drawn pattern for such change, as it might or might not change according to the expected scale and level.
In this, if there is high variability, then the results can be that the resulting process will be least productive, as there are so many uncontrollable changes.
Accordingly, since no proper management of the related process is possible, the results will not be productive.
Answer:
If compounded weekly =
No of weeks in a year=52
N= 52
EAR= (1+I/N)^N -1
=(1+0.12/52)^52 -1
=0.127=12.7% EAR
If compounded semiannually
N= 2
EAR= (1+0.13/2)^2 -1
=13.42%
It is better to borrow at 12% compounded weekly as the EAR is lower than 13% compounded semi annually.
Explanation:
Answer:
Given that,
Company's bank reconciliation at June 30 included interest earned = $150
So, it must be cash must be debited and interest revenue must be credited in the accounts.
Therefore, the journal entry is as follows:
Cash A/c Dr. $150
To Interest revenue $150
(To record the interest revenue earned)
Answer:
Return on company's stock = 15.6%
Explanation:
<u><em>The capital asset pricing model (CAPM)</em></u><em> relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c</em>
Using the CAPM , the expected return on a asset is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 6%, Rm- 14%, β- 1.2
E(r) = 6% + 1.2× (14- 6)%
= 6% + 9.6%
= 15.6%
Return on company's stock = 15.6%
Answer:
Date Account Titles Debit Credit
Oct 1 Cash $16,800
Common Stock $16,800
Oct 2 No journal entry - -
Oct 3 Office Furniture $2,500
Accounts Payable $2,500
Oct 6. Accounts Receivable $3,
400
Service Revenue $3,400
Oct 27 Accounts Payable $1,100
Cash $1,100
Oct 30 Salaries Expense $2,650
Cash $2,650
