Answer:
e. Discount rate that results in a net present value equal to the project cost.
Explanation:
The internal rate of return is the discounted rate of return at which the net present value is zero that shows the initial investment or the invested amount should be equal to the yearly cash flows present value after considering the discounting factor
Hence, the correct option is e as it defines the internal rate of return
Answer:
1 -- A, 2 -- B, 3 -- C, 4 -- E, 5 -- D
Explanation:
Securities held to maturity --
It requires the positive intent as well as ability.
Unrealized holding gains and losses --
Reported for the income statement of trading securities.
Impairment of securities available for sale --
Requires a recognition in income statement when judged to be other than the temporary.
Losses of investee --
Recognized only to extent of the carrying value under an equity method.
Amortization of a patent that was obtained in a business acquisition --
Reduces the investment account under an equity method if the fair value is higher than the book value.
Answer:
The statement is: False.
Explanation:
The difference between mass marketing and relationship marketing is that the first is used to attract large numbers of customers with a product that is not necessarily tailor-made for them. On the other hand, relationship marketing provides consumers with a good or service that matches their needs. Companies implementing this approach are likely to keep customers' information in a database to evaluate changes over time and to adapt to them.
Thus, maintaining databases thanks to the advance of technology is likely more useful for firms using relationship marketing.
Answer: Higher interest rate
Explanation:
Expansionary monetary policy is used by the central bank to stimulate the economy in such a way that there'll be a rise in the money supply available in the economy.
The interest rate is also reduced which ultimately leads to a rise in the demand and help improve economic growth. Expansionary fiscal policies on the other hand results in higher interest rate.
Answer:
<u>Year end Closing journal Entries:</u>
Dr. Cr.
1.
Sales revenue $880,000
Income Summary $880,000
2.
Income Summary $808,000
Cost of goods sold $580,000
Salaries expense $155,000
Rent expense $49,000
Interest expense $24,000
Retained earning is an equity account and it is also a permanent account which will not close.