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3 years ago

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A business provided services to a cash customer to record this transaction A. an asset is debited, and a liability is credited.

B. an asset is debited, and a revenue is credited. C. an expense is debited, and Capital is credited. D. None of the above

1 answer:

velikii [3]3 years ago

3 0

<span>To record this transaction it would be an asset is debited, and a revenue is credited. </span>

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Greer Manufacturing purchases property that includes land, buildings and equipment for $4.7 million. The company pays $185,000 i

nekit [7.7K]

Answer:

Explanation:

The journal entry is shown below:

Land A/c Dr $1,459,920

Equipment A/c Dr $2,085,600

Building A/c Dr $1,668,480

To Cash A/c $2,607,000 ($5,214,000 × 50%)

To Notes payable A/c $2,607,000 ($5,214,000 × 50%)

(Being purchase of property is recorded)

The total property cost would be

= $4,700,000 + $185,000 + $218,000 + $111,000

= $5,214,000

Estimated value of land = $5,214,000 × 28% = $1,459,920

Estimated value of building = $5,214,000 × 40% = $2,085,600

Estimated value of equipment = $5,214,000 × 32% = $1,668,480

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3 years ago

One primary focus of substantive tests in the finance and investment cycle is on:

Arlecino [84]

This Finance Test is designed to help you assess your knowledge on important finance concepts, terminology definitions, and frequently used calculations. We strongly encourage any students who are planning or are beginning their FMVA certification program to take this test to determine whether you will need to take the prerequisite finance courses including Reading Financial Statements, Introduction to Corporate Finance, and Math for Corporate Finance. This is also a useful resource for employers to examine the technical knowledge of the candidates during a finance interview.

If you pass this test with 80% or above (16 questions or more), it is likely that you have a strong background in finance and are good to go ahead with our core courses!

Finance Test Questions

1. The concept of present value relates to the idea that*

The discount rate is always higher when you invest now than in the future

The discount rate is always higher when you invest in the future than now

The money you have now is worth less today than an identical amount you would receive in the future

The money you have now is worth more today than an identical amount you would receive in the future

2. The formula for calculating future value (FV) is*

FV = PV/(1+r)^n

FV = PV/(1+r)*n

FV = PV x (1+r)^n

FV = PV x (1+r)*n

3 0

3 years ago

UPS, a delivery services company, has a beta of 1.4, and Wal-Mart has a beta of 0.9. The risk-free rate of interest is 4% and th

Elena-2011 [213]

Answer:

10.9%

Explanation:

to calculate the expected return of the portfolio, we first need to calculate the portfolio's beta:

the portfolio beta = (beta UPS stock x weight UPS stock) + (beta Walmart stock x weight Walmart) = (1.4 x 50%) + (0.9 x 50%) = 0.7 + 0.45 = 1.15

portfolio's expected return = risk free rate + (portfolio beta x market risk premium) = 4% + (1.15 x 6%) = 4% + 6.9% = 10.9%

7 0

3 years ago

A ___________ is established when an individual confers legal title to property to another person or institution to manage the p

swat32

Answer:

personal trust

Explanation:

3 0

3 years ago

Long-term debt outstanding: $300,000 Current yield to maturity (rdebt): 8% Number of shares of common stock: 10,000 Price per sh

nadya68 [22]

Answer:

Cost of capital=11.18%

Explanation:

First We will calculate the Equity of firm:

Equity= Number of share* Book value per share

Equity= 10,000* $25

Equity= $250,000

Long-term debt=$300,000

Expected rate of return=15%=0.15

Current yield to maturity (rdebt)=8%=0.08.

Value of firm=Equity+Long-term debt

Value of firm= $250,000+$300,000

Value of firm= $550,000

Formula:

$Cost\ of \ Capital=\frac{Equity}{Value\ of\ firm}* Rate\ of\ return+\frac{Debit}{Value\ of\ firm}* yield\ to\ maturity$

$Cost\ of\ Capital=\frac{\$250,000}{\$550,000}*0.15+\frac{\$300,000}{\$550,000}*0.08\\ Cost\ of\ Capital=0.1118$

Cost of capital=11.18%

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3 years ago