<span>Cash equivalents, the investments securities that are for short-term investing, and they have high credit quality and are highly liquid. Cash equivalents, also known as "cash and equivalents," are one of the three main asset classes, along with stocks and bonds. Cash equivalents also serve as one of the most important health indicators of a company's financial system.</span>
Answer:
The amount Lava should charge against income during year 4 is $63,000.
Explanation:
Since amortization is assumed to be recorded at the end of each year, this can be calculated as follows:
Annual amortization expense = Cost of the patent / Patent's estimated useful life = $90,000 / 10 = $9,000
Amortization expense recorded prior to year 4 = Annual amortization expense * 3 years = $9,000 * 3 = $27,000
Unamortized cost of patent charge against income during year 4 = Cost of the patent - Amortization expense recorded prior to year 4 = $90,000 - $27,000 = $63,000
Therefore, the amount Lava should charge against income during year 4 is $63,000.
Answer:
The price of the bonds is $ 1,276.
Explanation:
The value of bond or issue price can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.
Future Value = Redemption present value (RPV) + Present value of interest (PVI)
RPV = 1,000 (1+5%)^-15 = $ 481 -A
PVI = 36.25 * Annuity factor =$ 759 -B
Future Value = A + B = $ 1,276
Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+5%/2)^-30)/(5%/2) = 20.9303
Answer:
a. multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.
Cost pool is simply the amount of money spent by a firm on a particular activity.
Hence, to assign overhead costs to each product, the company multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.
In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;
Activity rate = total overhead cost/activity for the activity cost pool.
