Answer:
A company comparison should not be made with industry averages if the company does not clearly fit into any one industry.
Explanation:
In Business management, it is important to note that many companies will not clearly fit into any one industry.
Hence, when using industry averages, it is often necessary to use an industry that the firm best fits rather than randomly picking up any industry. Additionally, the analysis of an organization's financial statements would be more meaningful if the results are compared with industry averages and with results of competitors.
Any financial service sought after, should use its best judgment by analyzing and identifying which industry the firm best fits.
Answer:
the interest expense that should be recorded in the income statement is $600
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × given months
= $60,000 × 0.03 ÷ 12 × 4 months
= $600
Hence, the interest expense that should be recorded in the income statement is $600
Answer:
c. GDP fails to account for the quality of the environment.
Explanation:
Gross domestic product is defined as the sum total of all goods and services produced in a country within a specific time.
It measures the level of wealth in the economy. However it is not a true reflection of personal well being of the citizens of a country because it does not consider the quality of the environment in which people live.
GDP only measures.activities in the market place but does not evaluate other factors like leisure, quality of the environment, health levels, and education.
Answer:
yield to maturity = 9.78%
Explanation:
yield to maturity = {coupon + [(face value - market value) / n]} / [(face value + market value) / n]]
YTM = {$50 + [($1,000 - $913) / 2]} / [(($1,000 + $913) / 2]] = $93.50 / $956.50 = 0.09775 = 9.78%
The yield to maturity represents the total rate of return that an investor should receive if he/she holds a bond until it matures.
Uninsurable risk is one where the insurance company cannot calculate the probability of the risk occurring which can happen due to numerous reasons. An insurable risk is one where the calculations can be made and the premium that gets paid is determined.
