Answer: b. Matching
Explanation: The matching principle as an accounting practice states that all expenses must be matched in the same accounting period as the revenues they helped to earn. It recognizes revenues and related expenses of firms in the same accounting period. The matching principle helps in the avoidance of misstated earnings for a period.
Therefore the warranty expense note exemplifies Apple's use of the matching principle.
Answer:
$13.80
Explanation:
Calculation to determine the offering price
Using this formula
Offering Price = NAV/1-load
Let plug in the formula
Offering Price = $12.70/1-0.08
Offering Price =$12.70/0.92
Offering Price = $13.80
Therefore the offering price is $13.80
Answer:
Explanation:
a. The synergy will be the present value of the incremental cash flows of the proposed purchase.
Since the cash flows are perpetual, this amount is $370,000/.08
=$370000/.08
=$4,625,000
b
The value of Flash-in-the-Pan to Fly-by-Night is the synergy plus the current market value of Flash-in-the-Pan
= $4625000+9000000
=$13625000
c
stocked acquired = percentage age of ownership x value of merged firm
0.35 (13625000 + 23000000)
= $12818750
d
NPVs = Value of Flash-in-the-Pan to Fly-by-Night – (equivalent) cash offer =synergy – cost:
NPV of cash alternative = 13625000 – 13000000 = $625,000
NPV of stock alternative = 13625000 - 12818750 = $806,250
e
Use the Stock Alternative, Because NPV is better
<u>Explicit</u> costs are the monetary payments made for market-supplied inputs while <u>implicit</u> costs are non-monetary opportunity costs.
Market, a means by using which the alternate of goods and offerings takes location as a result of shoppers and dealers being in touch with one another, both without delay or through mediating dealers or establishments.
A market is an area in which consumers and sellers can meet to facilitate the alternate or transaction of goods and offerings. Markets can be physical like a retail outlet, or digital like an e-store. Different examples encompass illegal markets, auction markets, and financial markets.
The definition of a market is an area in which you go to buy matters or a call for a specific item. An example of a marketplace is a grocery save or a farmer's marketplace where stands are set up and fruits and vegetables are sold.
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