Answer:
The value of the option to wait is $0.70,option A.
Explanation:
In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.
Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.
The formula used in the calculating present value is PV=FV(1+r)^n
Where PV=present value
FV=future value
r=rate of interest
n=number of year
Find attached spreadsheet for detailed calculations.
Answer:
Date Account Titles and Explanation Debit Credit
Bonds payable $1,000,000
Loss on retirement of bond $13,000
[$1,050,000 - $1,037,000]
Premium on bond $37,000
Cash (1,000,000*105%) $1,050,000
(Record the retirement of the bonds, using a premium account)
Answer:
The term "benchmarking" as it relates to the hotel industry refers to comparing metrics for hotels of similar size or profile.
Explanation:
a) Benchmarking is a process wherein a company's products, services, business processes, or performance metrics are compared with a “best in class” competitor. The purpose of benchmarking is to enable organizations to make improvements by adapting specific best practices. A retail shop's metrics can be compared with the leading retail shop in your area. Given the deep insight gathered from benchmarking, this retail shop can decide to alter its line of products, the way it competes in the marketplace, or to undertake some improvements in her business processes.
There are four types of benchmarking, including internal, competitor, functional, and generic. Internal benchmarking is limited to internal processes. Competitor benchmarking compares one company's processes, products, or services to another. Functional benchmarking compares one function of an entity to another entity's. While generic benchmarking compares unrelated companies' processes or functions.
Answer:
The correct answer is: Unearned Revenue.
Explanation:
Unearned Revenues are advance payments that a company or individual collects for products and services that it has not yet rendered or delivered. Other terms for unearned revenue are advanced payments or deferred revenue. Unearned income must be debited to a cash account and credited to a liability account in compliance with the Generally Accepted Accounting Principles (GAAP).
