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balandron [24]
3 years ago
10

Which of the following would not be included in operating assets in return on investment calculations? A) Cash. B) Accounts Rece

ivable. C) Equipment D) Factory building rented to (and occupled by) another company
Business
1 answer:
maxonik [38]3 years ago
7 0

Answer: Which of the following would not be included in operating assets in return on investment calculations? D) Factory building rented to (and occupied by) another company

Explanation: Operating assets are assets that are used to conduct ongoing business operations. However, if they are going to yield a return on investment, it would not be counted in their operating assets due to renting the building to another company.

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When actual revenue ______ what the revenue should have been, the variance is labeled favorable.
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When actual revenue <u>exceeds</u> what the revenue should have been, the variance is labelled favourable.

Hope that helps!

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In early economic history money was not always available and transactions occurred through ____________ which was often very dif
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Trade
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3 years ago
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A broadband service company borrowed $2 million for new equipment and repaid the loan in amounts of $202,000 in years 1 and 2 pl
Gnesinka [82]

Answer:

The interest paid on the $2 million loan borrowed by a broadband service company is $354,000 while the interest rate on the loan is 17.70%.

Explanation:

In finance, interest is the amount that a bank or financial institution charged a borrower for borrowing money from them or the amount paid the customers for making use of their deposit.

Answer 1: Calculation of interest

The interest amount can be obtained as the difference between the amount lent or borrowed and the total amount repaid.

From the question therefore, the interest amount can be calculated as follows:

Amount borrowed = $2 million = $2,000,000

Total amount repaid is the addition of all repayments made, i.e. $202,000 in years 1 and 2 plus a lump sum amount of $1.95 million at the end of year 3. This calculation is given as follows:

Total amount repaid = $202,000 + $202,000 + $1,950,000

                                  = $2,354,000  

Amount borrowed = $2 million = $2,000,000

Interest = Total amount repaid - Amount borrowed

             = $2,354,000 - $354,000

             = $354,000

Answer 2: Calculation of interest rate

When the interest amount is quoted as a percentage of the amount loaned to a borrower or as percentage of the used deposited money in the account of a customer, it is called an interest rate.  

Given the interest amount calculated in Answer (1) above, the interest rate can be calculated as follows:

Interest rate = (Interest ÷ Amount borrowed) × 100

                    = ($354,000 ÷ $2,000,000) × 100

                    = 0.1770  × 100

                    = 17.70%

Therefore, the interest paid on the $2 million loan borrowed by a broadband service company is $354,000 while the interest rate on the loan is 17.70%.

I wish you the very best.

4 0
3 years ago
Madison Company's perpetual inventory records indicate that $875,300 of merchandise should be on hand on October 31. The physica
marta [7]

Answer:

Dr Cost of Goods Sold    $93,400

Cr Inventory                         $93,400

Explanation:

The closing inventory in perpetual inventory is $875,300 which is recorded in excess of its inventory in hand $781,900 which means that additional $93,400 must be adjusted in Cost of Goods Sold.

The journal entry on October 31, 2020, is given as under:

Dr Cost of Goods Sold    $93,400

Cr Inventory                         $93,400

3 0
3 years ago
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