Answer:
The answer is For debt issued at a discount; interest expense reported on the income statement equals cash interest less amortization of the discount
Explanation:
Effective interest method is an accounting practice used to discount a bond. This method is used for bonds sold at a discount; the amount of the bond discount is amortized to interest expense over the bond's life. As a book value increases, the amount of interest expense increase.
Answer:
1. $475
2. $950
3. $815
4. $950 per unit
Explanation:
1. If Teslum has a transfer pricing policy that requires transfer at full cost, then,
Transfer price = $475
2. If Teslum has a transfer pricing policy that requires transfer at market price, then,
Transfer price = $950
3. Minimum Transfer price:
= Market price - Selling expense that could be avoided
= $950 - $135
= $815
Maximum transfer price = Market price per unit
= $950 per unit
Answer:
She should become more knowledgeable by talking with a financial adviser, reading books, or by taking a class.
Explanation:
Answer:
True
Explanation:
This statement is true because it is in consonance or agreement with the law of supply which states that<em> </em><em>the quantity of a product produced and supplied of a commodity moves in the direction of the price of such commodity, assuming all other factors determining supply remain the same or constant (i.e. ceteris paribus). </em>On the other hand, the quantity of a product produced and offered for sale will reduce as the price of the product falls.
