Answer:
D) $25,000.
Explanation:
The Accrual Basis of Accounting is the process in which income earned or expenses incurred are recorded at the time the transaction takes place, whether or not the cash has been exchanged.
Net Income is derived by subtracting Expenses from Revenue.
N.B. Prepaid Expenses are Advance Payments towards expenses and are a Balance Sheet Items and will not be recorded under Net Income Calculations until the Expenses are realized.
So, The Net Income can be calculated as follows;
Revenue $60,000
Less: Expenses $35,000
Net Income $25,000
Hence Option D will be correct answer.
#NETINCOME
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Answer:
a. increased employment in the domestic export sector
Explanation:
The primary gain from the international trade is more good than , by the attainment through the domestic production alone .
When the countries trade specialization occurs , the countries in which they have comparative advantage produce the good more efficiently . Hence , the resources of other country can be used for the production of some other goods . So people benefit from trade as they get more variety of goods at a lower price and they are able to consume outside their PPF .
Answer:
Purchasing government securities to lower the interest rate
Explanation:
Lowering interest rates is used to stimulate the economy. It is also easier to lower interest rates when in inflation is low.
Answer:
component cost of debt to calculate wacc = 0.7
Explanation:
given data
par value = $1000
time = 20 year
rate = 7%
tax rate = 40%
tax rate = 30 %
to find out
cost of debit use to calculate wacc
solution
we know cost of debt before tax is 7%
so when tax is 30 % cost of debt after tax is = 7% ( 1 - tax rate )
cost of debt after tax = 7% ( 1- 0.30 )
cost of debt after tax = 4.9 .......................1
and
so when tax is 40 % cost of debt after tax is = 7% ( 1 - tax rate )
cost of debt after tax = 7% ( 1- 0.40 )
cost of debt after tax = 4.2 .......................2
so
from equation 1 and 2
component cost of debt to calculate wacc = 4.9 - 4.2
component cost of debt to calculate wacc = 0.7
