Answer:
<u>used cars can have lower initial cost</u>
<u>Explanation:</u>
Remember, the term risk often refers to an unpleasant or unwelcome event such as a loss arising from a particular action.
Hence, since we are looking for what is not a loss (potential risk) of purchasing a used car, the best option that matches this is that used cars have a lower initial cost which ofcourse can be seen as an advantage.
Answer:
True
Explanation:
Reserve are the amount kept aside to replace the existing building or component over a period of time due to wear and tear. It is also know as reserve for replacement in real estate industry, it is considered as asset for the project. Replacement reserve does not include funds which are require for repairing and maintenance. Fund can be reserved by calculating cost of each item and equipment divided by its useful life in years.
Answer: Option E
Explanation: In simple words, financing activities refers to the activities that directly affects the long term liabilities and equity of a company. Transactions that are recorded as financing activities usually relate to creditors and stockholders with objectives involving expansions or other such changes in company operations.
Thus, cash dividends will be paid to equity shareholders, who are considered to be owners of the company, and as they decreases the cash from the company it will be termed as an outflow.
Answer:
$22,000
Explanation:
Current liabilities are debts that a company must pay within a twelve month period.
This company's current liabilities are:
- Accounts payable $15,000
- Interest payable $7,000
Total current liabilities = $15,000 + $7,000 = $22,000
Since the note payable is due in 18 months, it is not considered a current liability.
In a business, the useful life of a machinery depends on its usage.
Let us assume that the useful life of the machine is 5 years.
cost of 500,000 ; useful life - 5 years ; further assume that there is no salvage value and no section 179 election and no out of bonus depreciation.
We will use the straight line method of depreciation. It is dividing the cost by its useful life.
500,000 / 5 years = 100,000 depreciation expense per year.
Since he only bought it on July 1, it can only be depreciated for 6 months.
100,000 * 6/12 = 50,000 depreciation expense for year 2015.