Answer:
A) True
Explanation:
Partitioning the internal rate of return (IRR) means dividing the returns from; cash flows from annual operating vs. cash flows from the resale of the investment.
The greater the proportion of resale cash flow, the greater the risk for the investor. The more return the investor gets from annual operating cash flows, the better.
Answer:
D. $156,000
Explanation:
Cost = $400,000
Residual value = $10,000
Useful life = 5 years
Now,
Annual straight line depreciation = 
Annual straight line depreciation = 
Annual straight line depreciation = 
Annual straight line depreciation = $78,000
Annual depreciation expense is transferred to the accumulated depreciation. Thus, accumulated depreciation is sum of depreciation expense charged over the useful life of the asset.
Depreciation table has been constructed to compute the accumulated depreciation on 31st December 2017.
Answer and Explanation:
1. The computation of the Degree of operating leverage is
= Quantity sold × (Price - Variable cost) ÷ (Quantity sold × (Price - Variable cost) - Fixed cost)
where,
Fixed cost = $160,000 + $470,000 ÷ 4
= $277,500
Now the degree of operating leverage is
= 77000 × ($30 - $20) ÷ ($77,000 × ($30 - $20) - $277,500)
= 1.56
2. The Accounting Break-even level of output is
The break even point is
= Fixed cost ÷ (Price - Variable cost)
= $277500 ÷ ($30 - $20)
= $27,750
As the degree of operating leverage could not be calculated as the denominator comes to zero
Accounting Cycle Steps<span>Identifying and Analyzing Business Transactions. The accounting process starts with identifying and analyzing business transactions and events. ...Recording in the Journals. ...Posting to the Ledger. ...Unadjusted Trial Balance. ...Adjusting Entries. ...Adjusted Trial Balance. ...Financial Statements. ...<span>Closing Entries.</span></span>
Overhead costs are those expenses which includes fees in repairs, rents, insurance, taxes, utilities, bills, expenditures, advertising, labor, and accounting fees. Overhead costs include so many factors that it is difficult to be classified into one. These costs are influenced by many issues which results in higher or lower payments. The answer for this is TRUE.
