Answer: True
Explanation: In simple words, real risk free rate refers to the rate than a borrower can actually get in the market for a specified amount and for a specified period.
Real risk free rate is seen as a measure of how the economy of a country is performing and is calculated by subtracting the inflation rate from the treasury bonds of the govt. which match the durability of the borrower.
It depicts the actual increase in purchasing power as it deducts the impact of inflation over time. Thus, the given statement is true.
Answer:
"B"
Explanation:
Expenses are recognized under the accrual accounting principle.
Before expenses can be recognized under accrual method , it must be matched to a particular revenue.This means that expenses are recognized in the period that the expense was able to generate a revenue. In other words , it in recorded in the period in which it was sold and not the period it was bought.
This is done to improve the quality , accuracy of financial statement to give a true representation of an organization.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
The accounting profit of Jarod based on the information regarding rent, wages, etc given will be $55000.
It should be noted they the formula for calculating accounting profit will be:
= Total revenue - Explicit cost
Total revenue will be:
= $65 × 4000
= $260,000
Explicit cost is the direct cost that a business spends. This will be:
= $60000 + $120000 + $25000
= $205,000
Therefore, the accounting profit will be:
= $260000 - $205000
= $55,000
The accounting profit is $55000.
Read related link on:
brainly.com/question/25373796
