Answer:
D
Explanation: <u>HAVE A GOOD DAY:)</u>
Complete/Correct Question:
An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value?
a. Effective gross income
b. Gross income multiplier
c. Gross rent multiplier
d. Potential gross income
Answer:
c, gross rent multiplier
Explanation:
Gross rent multiplier can be defined as the ratio of the price of a real estate investment to the annual income before the calculation of expenses.
It can simply be said to be the number of years it would take a property for pay for itself through rent collection.
Gross rent multiplier is very useful when deciding or trying to select properties to invest in to ensure that factors such as depreciation, periodical cost, etc affects the property/investment drastically.
in the case of the investor in the question above, gross rent multiplier will be used to determine what the future holds for the property.
Cheers
Answer and Explanation:
The Journal entries are shown below:-
1. Anthony Trucking Dr, $19,000
To Sales A/c $19,000
(Being the sales made is recorded)
2. Bank Dr, $5,000
To Anthony Trucking $5,000
(Being cash received is recorded)
3. Wrote off A/c Dr, $14,000
To Anthony Trucking $14,000
(Being Account receivable write off the balance is recorded)
4. Bank Dr, $14,000
To Wrote off $14,000
(Being cash received is recorded)
2. High Performance 's direct write-off approach would face drawbacks because it breaches the matching principle. The matching theory involves be matching the spending of uncollectible accounts with the relevant revenues. Here uncollectible amount is treated as a bad debt expense. The written off amount is treated as uncollectible amount by the customer
Answer:
$12,000 Favorable
Explanation:
Given that,
Actual overhead costs incurred = $98,500
Actual production for the month = 34,000 units
Standard variable overhead rate = $1.75 per direct labor hour
Standard fixed overhead rate = $1.50 per direct labor hour
One direct labor hour is the standard quantity per finished unit.
Firstly, we need to find out the overhead applied by multiplying the actual production units with the standard overhead rate and standard quantity per finished unit.
Total standard overhead rate:
= Standard variable overhead rate + Standard fixed overhead rate
= $1.75 + $1.50
= $3.25
Overhead applied:
= Actual production × standard quantity per finished unit × Total standard overhead rate
= 34,000 × 1 × $3.25
= $110,500
Therefore, the total manufacturing overhead cost variance is determined by deducting the Actual overhead costs from the overhead applied.
It is calculated as follows:
= Overhead applied - Actual overhead costs incurred
= $110,500 - $98,500
= $12,000 Favorable
Answer:
Matching Statements to Appropriate Terms:
Price-earnings ratio = Profitability Ratio
Return on Assets = Profitability Ratio
Accounts Receivable Turnover = Liquidity Ratio
Earnings per share = Profitability Ratio
Payout ratio = Profitability Ratio
Working capital = Liquidity Ratio
Current ratio = Liquidity Ratio
Debt to Assets = Solvency Ratio
Free Cash Flow = Solvency Ratio
Explanation:
Profitability Ratios are one of the classes of financial metrics that measure a business's ability to generate earnings relative to its revenue, operating costs, assets, or shareholders' equity during a period of time.
Liquidity Ratios measure the ability of the company to pay its maturing short-term debt obligations from its current assets. They include the working capital, the current ratio, and the acid-test ratio.
Solvency Ratios measure the ability of the company to pay its maturing long-term debt obligations from its assets.
