Answer:
a. People respond to incentives.
Explanation:
Assuming the state of Wyoming passes a law that increases the tax on cigarettes thereby causing smokers who live in Wyoming to start purchasing their cigarettes in surrounding states.
Consequently, an increase in the tax on cigarettes altered the behavior of the smokers in Wyoming, it made them to purchase from neighboring states.
This illustrates or reflect the fact that people respond to incentives.
Answer and Explanation:
A due on sale clause is simply a stipulation in the mortagage agreement that the
"borrower if he wants to sell the property to some other person, first of all he (borrower) shall repay the entire outstanding mortagage amount and then only it is possible to sell the property which is secured under Mortagage agreement.
Hence in essence, the borrower must repay before selling it to some other person which will result in paying the sale proceeds of house to the lender first and the Borrower again has to take loan sometimes from the same lender.
Hence it is imperative that the mortagage obligation cannot be transferred to any other person. That is any subsequent buyer cannot ASSUME the mortagage. Therefore due on sale
Clause prevents assuming of mortagages.
Answer:
Explain your statistics.
Explanation:
Considering the situation mentioned in the question that is McDonald’s has sold over 100 billion hamburgers. Since each McDonald’s burger (with the bun) is about 2 inches thick, 100 billion hamburgers stacked on top of each other would reach over 3 million miles¾fifteen times as far as the moon. In this context i would like to present in my textbook Explain your statistics.
Answer:
b. <u>cash, investments, and receivables, inventories, prepayments</u>
Explanation:
Financial assets refer to liquid assets which derive their value from ownership rights and claims. For example, bonds, mutual funds, etc are financial assets.
In the given case, cash, investments, receivables, inventories, prepayments (prepaid expense) etc are liquid assets and current assets which can be readily converted to cash. Investments could be both short term and long term.
Investments in treasury bonds are highly liquid.
Capital assets are usually those assets with maturity period of more than one year and unlike current assets are not intended for sale.
Answer:
revised annual depreciation will be : 13710
Explanation:
After revision the remaining life of equipment shrank down to 2 years, so the depreciation working will be worked out to adjusted the impact of decreasing of useful life.
As per existing information the depreciation charges are calculated as :
(Cost-Salvage Value)/Useful life= (49700-4000)/10 = 4570
Accumulated Depreciation indicates that 4 years have past by (18280/4570)
now remaining years are 6 which will be reduced to 2 after revision so the new working will be as follows:
Remaining Cost :31420 (49700
-18280)
Salvage Value : 4000
Revised Remaining Useful Life : 2
Revised Calculated Depreciation Annual : (31420-4000)/2 = 13710
It can be further verified through simple math also:
Adding annual depreciation of remaining 2 years : 13710
+13710
=27420
Value available for depreciation after salvage value : 31420
-4000= 27420
