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4 years ago

Deferral adjustments are needed when the business:

Business

1 answer:

prisoha [69]4 years ago

6 0

Answer:

The correct answers are the options B and D: Pays cash before the expense has been incurred. And receives cash before the revenue has been generated.

Explanation:

To begin with, in the accounting field the term of "Deferral Adjustments" refers to those that the accountant does when they postpone the report of it in the income statement until a later period, so that means that when an event happens they might decide to postpone the report of that particular transaction doing what it is called "defer". Moreover, the two most common cases when the accountants use this technique are the ones choosen from the options, the cases B and D.

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Tangshan Mining is considering issuing long-term debt. The debt would have a 30 year maturity and a 6 percent coupon rate and ma

Anon25 [30]

Answer:

After tax cost of debt is 4.85%

Explanation:

The starting to computing the after tax cost of debt is to calculate the yield to maturity on the bond .

The yield to maturity on the bond can be computed using the rate formula in excel.

=rate(nper,pmt,-pv,fv)

nper is the time to maturity of 30 years multiplied by 2 since the bond is paying interest on semi-annual basis

pmt is the semi-annual interest receivable by investor which 6.0%/2*$1000=$30

pv is the current market price :$1000*98% =$980 (100-2%),1% deducted for discount,1% for issue cost

fv is the face value of $1000

=rate(60,30,-980,1000)

rate=3.07%

The 3.07% is the semi-annual YTM, whereas the annual YTM 3.07% *2=6.14%

After tax cost of debt=YTM*(1-0.21)

=6.14%*(1-0.21)

=4.85%

5 0

3 years ago

The following transactions pertain to year 1, the first-year operations of Solomon Company. All inventory was started and comple

slava [35]

Answer:

Explanation:

Cost of sales 640+1810+1620=$4070

Operating Expenses 80+113=$193

Total Cost =4263

Unit produced =370

cost per unit =11.52

Sales revenue =250*14=$3500

Income statement

Revenue - 3500

Cost of sales 4070

Gross profit (570)

Operating Expenses (193)

Net loss (763)

Balance sheet

Inventory 1382.4

Equity 4800

Total asset 6182.4

Inventory is valued at $11.52 (lower of cost and net realizable value)

4 0

4 years ago

Kurt's Adventures, Inc. stock is quite cyclical. In a boom economy, the stock is expected to return 30% in comparison to 12% in

MAXImum [283]

Answer:

15.83%

Explanation:

Calculation to determine is the standard deviation of the returns on Kurt’s Adventures, Inc. stock

First step is to determine l E(r)

E(r) = (.30 *.30) + (.55 *.12) + (.15 *-.20)

E(r)= .09 + .066 -.03

E(r)= .126

Second step is to determine Var

Var = .30 *(.30 -.126)^2 + .55 *(.12 -.126)^2 + .15 *(-.20 -.126)

Var=0090828 +.0000198 + .0159414

Var= .025044

Now let determine the Std dev

Std dev = √.025044 = .15825

Std dev= 15.83 percent

Therefore the standard deviation of the returns on Kurt’s Adventures, Inc. stock.is 15.83 percent

6 0

3 years ago

Suppose that the weight (in pounds) of an airplane is a linear function of the amount of fuel (in gallons) in its tank. When car

Katarina [22]

Answer:

How much does the airplane weigh if it is carrying 55 gallons of fuel?

2433 pounds

Explanation:

W= (2124-1964 )÷(35-10)

w= 160÷ 25

w= 6,4

w= (2331-x)÷ (42-58 )

6,4= (2331-X)÷42-58

X= 6,4*16+2331

X= 2433

7 0

4 years ago

What is money that interests can spend on behalf of candidates without being restricted by federal law

Rom4ik [11]

Answer: soft money

Explanation:

Hard money and soft money are just ways by which several kinds of currencies are being described. While hard money simply refers to coins, soft money is used to refer to the paper currencies.

Soft money can also refer to the cash that is being given to a particular political party that has no limits being attached. It is the money that interests can spend on behalf of candidates without being restricted by federal law.

3 0

3 years ago