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AveGali [126]
3 years ago
14

A cost that is incurred when an actual monetary payment is made is a(n) __________ cost A. expressed B. explicit C. implicit D.

positive
Business
1 answer:
Arada [10]3 years ago
4 0

Answer:

explicit cost

Explanation:

The explicit cost will be the accounting expenses, those which are related to business operations like: materials, labor, rent, insurance and others.

This cost will be presented in the income statement and determinate the net income for the firm.

In constract for the explicit cost there are implicit cost. Those cost are related to output we renounce for using the factor in the current business (interest from a banking account instead of in investment in a forniture business; wages from another job instead of being entrepreneur)

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Mahogany inc. is a consulting firm. it reports its results on a cash-basis with a fiscal year ending june 30th. mahogany perform
Dimas [21]
<span>If these are the missing choices:
</span>A  :  the Securities and Exchange Commission, income principle  
<span>B  : GAAP, revenue recognition principle 
C  : GAAP, expense recognition principle 
D  : the IRS, tax principle </span><span>

My answer is: </span><span>B  : GAAP, revenue recognition principle  
</span><span>
The cash-basis is not in accordance with GAAP, and mahogany is in violation of the REVENUE RECOGNITION PRINCIPLE.

GAAP refers to Generally Accepted Accounting Principle. 

It is stated that income must be recognized when it is earned not when cash is received. Because the company is using cash-basis, they will only report income earned on July 12 when they received the money not when they earned it which is before their fiscal year ending June 30. 
They should recognized receivables from customers before closing the books for the fiscal year. </span>
6 0
3 years ago
Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2012:
diamong [38]

Answer:

a. $1,765,000

Explanation:

Total stockholder’s equity on December 31, 2013  =  Total equity at end 2012 – amount paid for 3,000 shares were reacquired at $28 per share – amount paid for 3,000 shares were reacquired at $35 per share + amount collect from 1,800 shares of treasury stock were sold at $30 per share + net income of $450,000

=  $1,450,000 – 3,000 * $28 – 3,000 * $35 + 1,8000 *$30 + $450,000 = $1,765,000

4 0
3 years ago
Which of the following statements regarding Federal Reserve independence is​ incorrect?
hichkok12 [17]

Answer:

The correct answer is option D

D. The​ 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure

Explanation: Option D is incorrect regarding federal reserve independence.

8 0
3 years ago
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 37,500 –$ 37,50
sp2606 [1]

Answer:

Year             Cash Flow (A)            Cash Flow (B)

0                      -37,500                      -37,500

1                         17,300                         5,700

2                        16,200                       12,900

3                        13,800                       16,300

4                         7,600                       27,500

1) Using an excel spreadsheet and the IRR function:

IRR project A = 20%

IRR project B = 19%

2) Using the IRR decision rule, Bruin should choose project A.

3) In this case, since the length of the projects is only 4 years, then there should be no problem with the IRR decision rule, but for projects with longer time lengths, the discounts rates might vary and the best option is to use the modified internal rate of return (MIRR). But in this case the NPV of project B is higher, then Bruin should probably project B because it has a higher NPV. The NPV is always more important then the IRR.

4) Again using an excel spreadsheet and the NPV function:

NPV project A = $6,331

NPV project B = $8,139

5) first we must subtract cash flows from A by the  cash flows from B:

1      $11,600

2     $3,300

3    -$2,500

4   -$19,900

then we calculate the IRR = 16%

Bruin should be indifferent between the two projects at a 16% discount rate. That means that at discount rates above 16%, you should choose project A, but at discount rates below 16%, you should choose project B

6 0
3 years ago
Brown Street Grocers has a cost of equity of 11.8 percent, a pre-tax cost of debt of 6.9 percent, and a tax rate of 35 percent.
motikmotik

Answer:

The correct answer to the following question is option E) 9.06% .

Explanation:

Here the cost of equity given is  - 11.8%

Pre tax cost of debt- 6.9%

Tax rate- 35%

So the after tax cost of debt - 6.9% x 65%

= 4.485%

The debt to equity ratio - .6

So the weight of debt - .6 / ( 1 + .06 )

= .375

Weight of equity - 1 / ( 1 + .06 )

= .625

Weighted average cost of capital =

Debts cost x weight of debt + Equity cost x weight of equity

= 4.485 x .375 + 11.8 x .625

= 1.681875 + 7.735

= 9.06%

5 0
3 years ago
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