Answer:
-3.91%.
Explanation:
The Duration Adjustment (% change in bond price) is given by:
= (Duration) * (Change in yield in %)
= -(7.81) x (0.5%)
= -3.91%
The Convexity Adjustment is given by:
= 0.5 * Convexity * (Change in yield, as a fraction)^2
= 0.5 * 99.87 * (0.005)^2
= 0.5 * 99.87 * 0.000025
= 0.001248375
= 0.0012%
Thus, the convexity correction is 0.0012%
Thus, the total change in bond price = -3.91% + 0.0012% = -3.91%.
Answer:
The correct answer is c) $9,000
Explanation:
If net credit sales are $300,000 and bad debt expense is estimated at 3% of net credit sales.
$300,000 x 3%= $9,000
or
$300,000 x 0.03= $9,000
The amount of the adjusting entry to record the estimated uncollectible accounts receivables is $9,000
Answer:A. Cost is greater than net realisable value(NRV)
Explanation:
An inventory should not be higher than the price its sale or use and this requires the comparison of inventory cost to it's ( NRV) and whichever is lower will be used as cost of inventory
NRV= Sales price less cost to completion and less estimated cost necessary to make the sales.
Answer:
D. Original cost.
Explanation:
As we know that the inventory should be valued at lower of cost or market value. Also , the market value is the middle amount among the replacement cost, net realizable value, net realizable value - normal profit margin
It can be the replacement cost or net realizable value. We don't have an idea which one is the middle amount
Also, if the original cost is less than the market cost so we assume that the inventory should be valued at original cost
Answer: centralized
Explanation:
Based on the information given in the question, we can infer that McCoy operates a centralized department.
This is a centralized department because McCoy takes the decisions in the organization. In a centralized department, the organizational structure is such that the power regarding the decision is confined to top management, while the followers just follow the instructions
