Answer:
Explanation:
Question 27
If Wheat Company had used the FIFO inventory method, income before income taxes would have been $75,000 higher in the current year. As inventory is an asset to the company. Therefore the $75,000 in inventory would have increased the company's asset and increasing the income before taxes.
Question 28
Other things held constant, which of the following will NOT affect the current ratio, assuming an initial Not yet current ratio greater than 1.0?
C. Accounts receivable are collected in cash.
Current ratio measures a company's ability to pay short-term obligations as at when due. It indicates that a company can manage its debts and other payable when their current assets is well managed.
It is calculated as Current Asset/ Current Liability. A ratio of 1 and above is the best meaning that a company an manage its debts obligations well.
Answer:
The correct answer is: $1,000,000 (one million dollars).
Explanation:
The Real Estate Recovery fund is the poll of money collected to refund people who have been affected somehow by real state brokers or salespeople. Fraud, misrepresentation or deceit are considered for his purpose and it is given only when no benefit can be provided to the person affected after court. If the amount implied is greater than $1,000,000 (one million dollars) the Real Estate Recovery Fund is unable to provide any reimbursement aid.
After accounting for bad debt expense, the remaining amount in the allowance for doubtful accounts is $7,950.
<h3>
What is bad debt?</h3>
Bad debt, sometimes referred to as uncollectible accounts expense, is a sum of money owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for a variety of reasons, frequently due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency. Depending on accounting practices, regulatory considerations, and the institution provisioning, there are many technical definitions of what a bad debt is. Bank loans in the USA are referred to as "problem loans" if they are more than 90 days overdue. Accounting sources recommend deducting the entire amount of a bad debt from profit and loss or from a provision for bad debts as soon as it is anticipated.
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Answer:
Stock R more beta than Stock S = 4.2%
Explanation:
given data
Stock R beta = 1.8
Stock S beta = 0.75
expected rate of return = 9% = 0.09
risk-free rate = 5% = 0.05
solution
we get here Required Return
Required Return (Re) = risk-free rate + ( expected rate of return - risk-free rate ) beta ...........1
Required Return (Re) = 0.05 + ( 0.09 - 0.05 ) B
Required Return (Re) =
so here
Stock R = 0.05 + ( 0.09 - 0.05 ) 1.8
Stock R = 0.122 = 12.2 %
and
Stock S = 0.05 + ( 0.09 - 0.05 ) 0.75
Stock S = 0.08 = 8%
so here more risky stock is R and here less risky stock is S
Stock R is more beta than the Stock S.
Stock R more beta Stock S = 12.2 % - 8%
Stock R more beta Stock S = 4.2%
Answer:
c. $24,850
Explanation:
A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the year) Fair value (end of the year) Stock A (100 shares) $50 per share $45 $51 Stock B (200 shares) $40 per share $41 $49
; Bonds Cost $9,000 Fair value (beginning of the year) Fair value (end of the year)$10,000 $9,950
The amount that should be the total value of investments reported in the year-end statement of financial position? will be the fair value of the investments at the end of the year becaue investments by financial reporting standards are carried at fair values unlike physical assets carried at costs
Stock A = 100 Shares x fair value end of year of $51 = 5,100
Stock B = 200 Shares x fair value end of year of $49 = 9,800
Bond @ Fair value end of year...........................................= 9,950
Total............................................................................................$24,850
