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3 years ago

7

Financial risk applies to both the additional variability in earnings available to common shareholders and the additional chance

of insolvency caused by the use of financial leverage.
A) True
B) False

1 answer:

MAXImum [283]3 years ago

4 0

A, This is true for Financial risk

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Which of the following transactions will increase an asset and increase a liability? A. Purchasing office equipment for cash B.

Mariana [72]

Answer:C. Buying equipment on account.

Explanation:

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3 years ago

AB Corporation and YZ Corporation formed a partnership to construct a shopping mall. AB contributed $527,000 cash, and YZ contri

Vaselesa [24]

Answer:

a. AB and YX are both general partners.

AB's basis in the partnership's interests = $527,000 + ($263,500/2) = $658,750

YZ's basis in the partnership's interests = $457,000 + ($263,500/2) = $588,750

Each partner share 50% interest in the recourse debt.

b. AB is a general partner, and YZ is a limited partner.

AB's basis in the partnership's interests = $527,000 + $263,500 = $790,500

YZ's basis in the partnership's interests = $457,000

Only AB has a share in the recourse debt, since YZ is a limited partner it has no recourse debt share.

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3 years ago

When the bicycle manufacturer trek determined that some consumers use bikes for green transportation whereas others use them for

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3 years ago

Who benefits from an import-substitution strategy? who is harmed?

Aloiza [94]

Answer:

Import substitution industrialization (ISI) is a trade and economic policy which advocates replacing foreign imports with domestic production. Domestic consumers benefit from import substitution as they do not have to face strong competition from foreign competitors and can sell their goods at a higher price. So for example manufacturers in USA sell a battery from $10 but consumers from USA have the option to import that battery at $7 from China the US manufacturers wont be able to compete as Chinese companies have lower cost of production therefore they can sell cheaper and in order to protect the local manufacturers the government may use an ISI strategy to help the local manufacturers. On the other hand consumers are harmed from this strategy as they cannot buy the cheaper product because of change in government strategy. So consumers who were buying the battery at $7 not have to buy it at $10.

Explanation:

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3 years ago

On January 1, 2021, Consolidated Company purchased 100% of the common stock Avergy Industries for $720,000. On that date, Avergy

Dahasolnce [82]

Answer:

b. $ 50,000

Explanation:

Investment cost

720000

Book value of net asset

100000

420000

--------------

520000

Excess

200000

Allocated as follows

Land and equipment 50000

overvaluation of bonds payable 40000

Undervaluation of inventory 60000

Total 150000

Un allocated amount

Goodwill 50000

Total 200000

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3 years ago