Answer: Option <u>" C. Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise. "</u> is generally true of all bonds.
Explanation: The negotiation of bonds in the open market can lead to a negative return on the bonds if the price of the bonds is negotiated with a sufficient premium. Remember that bond prices change inversely with the yield of a bond, the higher the price of a bond, the lower the yield. At some point, the price of a bond may increase enough to imply a negative return for the buyer.
Answer:
Y=4200+0.074X
At activity level of 80,000 kilometers total cost is $10,120
Explanation:
Variable cost=(cost at higher activity-cost at lower activity level)/(vol. at higher activity level-vol. at lower activity level)
cost at higher activity level=105000*0.114=$11,970
cost at lower activity level=70000*$0.134=$9,380
variable cost=($11,970-$9,380)/(105,000-70,000)
=$0.074
The cost function is Y=a+bX
where Y is total cost
a is fixed cost
b is the variable cost
X is the volume of output at a particular level of output
by substituting variable cost at higher activity level of 105000 units
$11,970=a+($0.074*105000)
$11,970=a+$7770
a=$11,970-$7,770
a=$4,200
Y=4200+0.074X
If 80,000 kilometers were driven during the year,the total cost is computed thus:
Y=$4200+($0.074*80000)
Y=$4200+$5920
Y=$10,120
<span>tests products such as drugs and automobiles for safety</span>
Answer:
The answer is:
Amanda should record the wasted birdseeds (inventory loss) by adjusting the inventory account.
A company's inventory account may be incorrect and show errors due to waste or theft. When a loss in inventory is detected, the inventory account should be adjusted to record all the losses due to waste or theft.
Answer:
1. Transaction will have effects on Balance Sheet in the Assets Section and will be classified as an Investing Activity in the Statement of Cash flows.
2. Transaction will have effects on Balance Sheet in the Liability Section and will be classified as a Financing Activity in the Statement of Cash flows.
3. Transaction will have effects on Income Statement in the Revenue Section and will be classified as an Operating Activity in the Statement of Cash flows.
4. Transaction will have effects on Income Statement in the Revenue Section and will be classified as an Operating Activity of the Statement of Cash flows.
5. Transaction will have effect on Income Statement in the Expense Section and will be classified as a Financing Activity in the Statement of Cash flows.
Explanation:
1. Falcon purchases common stock of Wildcat. This is classified in the investments tab of the assets account. This will be reflected in balance sheet. The transaction is classified in the investing activity.
2. Falcon borrows from Wildcat and signs Notes payable this will have effects in balance sheet liability account. This is financing activity.
3. Falcon receives Dividend revenue from Wildcat. This will be reflected in income statements as revenue. It will operating activity.
4. Falcon provides services to Wildcat , this is reflected in income statement as revenue. This will appear under operating activity.
5. Falcon pays interest on the borrowings to Wildcat. This is income statement items and is an expense. It belongs to financing activity.
