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3 years ago

In the early 1980s, David Jimenez, a corporate finance manager, was faced with which of the following problems?

Business

1 answer:

Anton [14]3 years ago

4 0

Answer:

a. High inflation rates

Explanation:

Note that a major role of a corporate finance manager is to maximize the profits of a business by providing advice as to mergers as well as buying and selling financial products.

Therefore, according to reports David Jimenez in the early 1980s was faced with the problems of high inflation rates which meant a rise in the cost of production etc for companies or businesses under his care.

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The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

sleet_krkn [62]

Answer:

a. Revenue recognition principle

Explanation:

The revenue recognition principle refers to the principle in which the revenues are recorded when it is realized or earned. It follows the accrual basis of accounting

It is not recorded when the cash is actually received.

When the sale is made, the same is to be shown in the books of accounts

Therefore as per the GAAP, the revenue should be addressed by revenue recognition

hence, the correct option is a.

4 0

3 years ago

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month,

olga nikolaevna [1]

Answer:

Direct Material Price Variance = $300 Favorable

Explanation:

Direct Material Price Variance = (Standard Price - Actual Price) $\times$ Actual Quantity

Standard Price = $4 per pound

Actual Price = $\frac{Actual\ Cost}{Actual\ Units}$ = $\frac{5,700}{1,500} = 3.8$

Since the actual price is less than the standard price the variance will be favorable as the amount paid for actual use is less then the estimated standard cost.

Thus, direct material price variance = ($4 - $3.8) $\times$ 1,500

= $300 Favorable

7 0

2 years ago

On November 1, 2019, Davis Company issued $30,000, ten-year, 7% bonds for $29,100. The bonds were dated November 1, 2019, and in

Tcecarenko [31]

Answer: A.) $1,095

Explanation:

Bond value = $30,000

Rate = 7%

Period = 10 years

Issue price = $29,100

Bond value × rate :

30,000 × 0.07 = $2100

Semi annually:

$2100 / 2 = $1050

(Bond value - issue price) ÷ (period × 2)

($30,000 - $29,100) / (10 × 2)

$900 ÷ 20 = $45

$1050 + $45 = $1,095

8 0

2 years ago

Taunton's is an all-equity firm that has 152,000 shares of stock outstanding. The CFO is considering borrowing $245,000 at 6 per

dezoksy [38]

Answer:

The value of the firm is $1,773,333

Explanation:

Calculation of Value of each share

Amount borrowed (A) $245,000

No. of shares repurchased (B) 21,000

Value for each share (C) $11.67

No. of shares outstanding after repurchase(A) 131,000

(152,000 - 21,000)

Value for each share(B) $11.67

Equity value after repurchase(A*B) $1,528,333

Add: Amount borrowed $245,000

Firm value after this transaction $1,773,333

7 0

2 years ago

Cant take big d but i suck on it....

Scrat [10]

.. huh and orange then me too and brown and green faking a red green brown

6 0

2 years ago

Read 2 more answers