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3 years ago

When closing entries are made:

Business

1 answer:

Anastaziya [24]3 years ago

4 0

Answer:

e) All temporary accounts are closed but permanent accounts are not closed.

Explanation:

At the time of the closing entries, the temporary accounts are closed instead of all other accounts. The temporary accounts include revenues account, expenses account, dividend paid account, ultimately income summary account

These accounts are closed so that the amount of these accounts should be carried forward to the next accounting period. The amount would always be zero, And in every accounting period, these accounts are closed.

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A posthypnotic suggestion is made ________ a hypnosis session and intended to be carried out in the future when the subject is _

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3 years ago

When the price of a good rises, consumers buy a smaller quantity because of the ________ effect and the ________ effect?

VladimirAG [237]

When the price of a good rises, consumers buy a smaller quantity because of the substitution effect and the income effect. A change in the relative prices of goods results in change in consumption of that goods and that is denoted as the substitution effect. T<span>he change in purchasing power on the other hand which also result in change in consumption is referred to as the income effect.</span>

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3 years ago

Targaryen Corporation has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt.

Juli2301 [7.4K]

Answer:

a. What is the company’s WACC?

R_Wacc = 13% (65%) + 5% (5%) + 6% (30%) * (1-0,25) = 10,05%

b. What is the aftertax cost of debt?

The aftertax cost of debt is:

R_Debt : (1 - 0,25) x 6% = 4,50%

Explanation:

The WACC it's defined by the formula :

WACC: E/V*Re + D/V*Rd *(1-0,25)

Re: 13,00% Cost of Common Equity

Re: 5,00% Cost of Preferred STOCK

Re: 6% Cost of Debt

E/V: 65% Percentage of financing that is Common Equity

PS/V: 5% Percentage of financing that is Preferred Stock

DB/V: 30% Percentage of financing that is Debt

Tax: 25% Corporate tax rate

Now we have all of the components to calculate the WACC.

The WACC is:

R_Wacc = 13% (65%) + 5% (5%) + 6% (30%)*(1-0,25) = 10,05%

The aftertax cost of debt is:

R_Debt : (1 - 0,25) x 6% = 4,50%

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3 years ago

In a finance lease:

Maslowich

Answer:

A) the lessee records an asset and a liability for the present value of lease payments.

Explanation:

In a finance lease, the lessee business must estimate the present value of its obligations under the lease contract (using the lease's interest rate as the discount rate) and record it in the balance sheet as:

a debit entry under the fixed asset account
a credit entry under the capital lease liability account

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2 years ago

When a firm develops a marketing campaign for a social cause, such as a cleaner environment, what type of marketing campaign is

Bess [88]

Answer:

Cause-related marketing

Explanation:

Cause related marketing is usually carried out between a corporation and a nonprofit organization (e.g. humane society, PETA, etc.). The corporation sponsors the nonprofit as a way of supporting their cause, e.g. better animal treatment, environment, cancer or aids awareness, etc. This way the corporation's image and its products are related to the sponsored cause.

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2 years ago