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eimsori [14]
3 years ago
15

For which of the following transactions would the use of the present value of an annuity due concept be appropriate in calculati

ng the present value of the asset obtained or liability owed at the date of incurrence? A. A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement.
B. A capital lease is entered into with the initial lease payment due one month subse-quent to the signing of the lease agreement.
C. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 7%.
D. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 9%.
Business
1 answer:
Drupady [299]3 years ago
3 0

Answer:

A capital lease is entered into with the initial lease payment due upon the <u><em>signing of the lease agreement.</em></u> The annuity begins with a payment

Explanation:

An annuity-due represnet an annuity were payment or deposits are perform at the beginning of the period.

B no. It doesn't start with a payment.

C no, there is no payment at issuance.

D same as C only the rates changes but this, do not change the essence of the annuity it is still a common annuity not annuity-due

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Answer: Federal aid

Explanation:

Federal aid helps students with the cost of tuition for everyone. It allows for students to keep out of major debt.

4 0
3 years ago
A firm have an inventory turnover of 5 times a year on a cost of goods sold of $800 000.if the firm improves the inventory turno
Lunna [17]

Answer:

d) $60,000 is released into working capital

Explanation:

Inventory turnover is the number of times that a firm buys and sells inventory. A high inventory means that the company sells its stock many times in a year.

the formula for inventory turnover ratio

=Cost of goods sold/ average inventory

If a firm has COGS of $800,000 and an inventory turnover of 5, then the average inventory will be

=$800,000 /5

=$160,000

If the firm improves its  turnover to 8, then the average inventory will be

=$800,000/8

=$100,000

The firm average inventory will  $100,000 as opposed to $160,000 previously.

$60,000  will be released to working capital.

3 0
3 years ago
Stealth bank has deposits of $300 million. it holds reserves of $20 million and has purchased government bonds worth $300 millio
ryzh [129]

First let us identify if the asset is a gain or loss. An asset is a gain if it contributes to the banks overall finance while it is a loss if it is a cost directly or indirectly.

Deposits of $300 million = Gain (+)

Reserves of $20 million = Gain (+)

<span>Purchased government bonds worth $300 million = Loss (-)         ---> This entails cost</span>

Selling bank’s loans at current market value of $600 million = Gain (+)

Therefore adding up everything to get the banks net worth:

Stealth banks net worth = $300 M + $20 M - $300 M + $600 M

<span>Stealth banks net worth = $620 million</span>

7 0
3 years ago
Which of the following statements about material requisitions is false? a. Material requisitions are often computerized. b. Mate
Vladimir79 [104]

Answer:

D. Material requisitions authorize the transfer of materials from the production floor to the raw materials warehouse

Explanation:

Material requisitions doesnt authorize anything, just provides information

6 0
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Crawford Fishing had a net income of $35,640 in 2017. They decided to pay $3,000 in dividends and keep the rest to help expand t
CaHeK987 [17]

Answer:

The profit that they keep to reinvest in the business is recorded as  D : retained earnings.

Explanation:

Retained earnings (RE) is the amount of net income left over for the business after it has paid out dividends to its shareholders.

4 0
3 years ago
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