1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dybincka [34]
3 years ago
12

Depreciation is defined as the Group of answer choices a. decrease in the stock of capital due to investment by firms. b. decrea

se in the stock of capital due to wear and tear. c. increase in the stock of capital due to investment by firms. d. increase in the stock of capital due to wear and tear.
Business
2 answers:
ad-work [718]3 years ago
6 0

Answer:

The correct answer is Option B.

Explanation:

Depreciation is defined as decrease in the available of an asset due to wear and tear, obsolescence, technological innovation, idleness, etc. Based on<em> IAS 16 Property, plant and equipment</em>, depreciation of an asset commences when it is available for use e.g., if an organization purchased a motor van and it is available for use but decided to park in the car park for long, whether it is being put to use or not, such asset would still be subject to wear and tear.

bogdanovich [222]3 years ago
4 0

Answer:

b. decrease in the stock of capital due to wear and tear.

Explanation:

Depreciation is a reduction in the value of an asset over time, due in particular to wear and tear.

Depreciation is the gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question.

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation. ... Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time.

You might be interested in
David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's outstanding
Marrrta [24]

Answer:

Cost of equity = 14.43%

Explanation:

Weigheted Average cost of capital is computed using the formula below:

WACC = (Wd×Kd)  + (We×Ke)

           Kd= aftre tax cost of debt= 12%× (1-0.4)= 7.2%

           Wd =Proportion of debt= 40%

           We = proportion of equity = 60%

            Ke= cost of equity.

let the cost of equity be "y"

WACC = 11.54

11.54 = (40%× 7.2%) + (60% × y)

0.1154  = 0.0288 + 0.6y

0.1154 - 0.0288 = 0.6y

y =(0.1154 - 0.0288)/0.6

y = 0.1443 × 100

y =14.43%

Cost of equity = 14.43%

         

8 0
3 years ago
Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a period, together with informatio
MrRissso [65]

Answer:

<em>Cost of completed WIP:</em> 30,240

<em>Total cost of tranferreed-out:</em> 729,990

Explanation:

<em><u>We assume it works with weighted-average process costing</u></em>

Beginning 9,000 50% = 4,500   $22,050

Finished goods 207,000 units

Direct Materials 212,000 units at $1.6

Direct labor       $276,000

Overhead          $<u> 107,400    </u>

Total Overhead $383,400

started   212,000 units

<u>finished 207,000 units</u>

ending       5,000 units at 75%

EU Conversion Cost 207,000 + 5,000 x 75% =  210,750

<em>Cost per equivalent unit: 383,400 / 210,750 = 1,819217</em>

Cost of beginning WIP comepleted

22,050 beginning + 1.82 x 4,500 =  30,240

Cost of the units transferred to finished goods:

    22,050 beginning WIP balance

+ 207,000 x $1.6 materials

<u>+ 207,000 x $1.82 conversion cost  </u>

<em>Total:</em> 729,990

7 0
2 years ago
Grandfather clocks have a particular market in auctions. One theory about the price at an auction is that it is higher when ther
anastassius [24]

Answer:

t value is 1.495

Explanation:

The null and alternative hypothesis are :

H0 : mu = 1327

ha: mu > 1327

This is a one tailed test

Critical value = 1.771

at 0.05 significance level with df = 14-1 = 13

test statistics:

s = 411.53, n = 14

t = (xbar -mu)/(s/sqrt9n))

= ( 1491.43 - 1327)/(411.53/sqrt(14))

= 1.495

Decision:

Reject H0 if tstat > 1.771

Fail to reject H0

5 0
3 years ago
A stock listing contains the following information: P/E 17.5, closing price 33.10, dividend .80, YTD% chg 3.4, and net chg of -.
Mazyrski [523]

Answer:

B. I and III only

Explanation:

I. The stock price has increased by 3.4% during the current year.

YTD% chg 3.4% means share price change by the rate of 3.4%.

III. The earnings per share are approximately $1.89.  

P/E ratio = 17.5

Closing price = $33.10

EPS = $33.10 / 17.5

       = $1.89.

Therefore, The correct option is I and III only.

7 0
3 years ago
Peabody, Inc., sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, Ma
Viktor [21]

Answer:

Peabody, Inc.

a. Inventory Purchase Budget:

                                                         April        May           June    

Budgeted cost of goods sold     $79,000   $89,000   $99,000

Add Ending Inventory                    17,800       19,800      21,000

Cost of Goods Available 4 Sale $96,800     118,800     120,000

Less Beginning Inventory              2,700       17,800        19,80

Purchases                                   $94,100   $101,000   $100,200

b. The amount of Ending Inventory that Peabody will report on the end-of-quarter proforma balance sheet is:

$21,000

c. A Schedule of Cash Payments for Inventory:

                                                       April        May           June  

70% in month of purchase        65,870       70,700        70,140

 30% in the month following    15,000       28,230       30,300

Total payment                         $80,870     $98,930   $100,440

d. Balance of the Accounts Payable is:

$30,060

Explanation:

a) Data and Calculations:

1. Cost of Goods Sold Budget:

                                                         April        May           June          July

Budgeted cost of goods sold     $79,000   $89,000   $99,000   $105,000

Add Ending Inventory                    17,800       19,800      21,000

Cost of Goods Available 4 Sale $96,800     118,800     120,000

Less Beginning Inventory              2,700       17,800        19,800      21,000

Purchases                                   $94,100   $101,000   $100,200

Accounts Payable

Beginning balance                    $15,000    $28,230    $30,300

Purchases                                  $94,100   $101,000   $100,200    

Less payment:

 70% in month of purchase      65,870       70,700        70,140

 30% in the month following    15,000       28,230       30,300

Ending balance                       $28,230     $30,300    $30,060

5 0
2 years ago
Other questions:
  • GMC is considering launching a new line of hybrid diesel-electric SUVs. The heavy advertising expenses associated with the new S
    6·1 answer
  • The characteristics of unhealthy company cultures include
    5·1 answer
  • Your firm is a supplier to a major chain of discount stores. you have heard rumors that this chain of discount stores is in fina
    14·2 answers
  • Factors of production, such as physical capital, human capital, and technological knowledge, are crucial to economic growth. The
    13·1 answer
  • A client, age 67, owns his own home free and clear. The customer has an annual income of $25,000, mainly from social security an
    8·1 answer
  • 3) Compute the annual allowable depreciation using the straight line method for a machine that costs $86,000 to purchase and $7,
    15·1 answer
  • Bababooey.................................................................
    13·2 answers
  • Luke enters into a three-year interest rate swap to receive a fixed rate and pay a variable rate based on future 1-year LIBOR ra
    5·1 answer
  • Zibb is a transnational electronics company based in Germany. It has factories in China, Mexico, and India. The company aims to
    11·1 answer
  • Help!!!!!!!!!!!!!!!!!
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!