Answer:
The stock investment is preferred
Explanation:
The bond give a holding period yield of 14% which is calculated thus:
holding period yield =(p1-p0)/p0+return of 7%
=(107,000-100,000)/100,000+7%
=7%+7%
=14%
The stock investment of 15% is preferred over the bond return of 14%,since the stock portfolio comprises of assets that are not correlated which implies adverse performance in one stock asset does not affect the performance of others,invariably the 15% return is near guarantee.
Answer:
C
Explanation:
Capital budgeting are the methods employed by is the process that a businesses to determine which which investments to accept, and which should be declined.
Some of the capital budgeting methods are :
1. Net present value
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
2. Internal Rate of Return
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
3. Profitability Index
profitability index = 1 + (NPV / Initial investment)
4. Accounting rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
5. Payback period
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
6. Discounted payback period
Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows
Answer:
B. You need a separate W-2 form from EACH of your employers in order to file your taxes.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
In order to ensure that, all employees pay taxes on the income earned throughout the year, the internal revenue service (IRS) has made it compulsory and mandatory for all employers to make available a W-2 Form to all their employees, so as to enable these employees fill out the total amount of wages, how much income tax is to be withheld from their respective paycheck in relation to their filing status and how much was paid as tax the previous year. Therefore, a W-2 form is used by an employer to report the wages paid to each employee, calculate how much tax should be withheld from his or her employee's paycheck and submitted to the internal revenue service (IRS).
Additionally, any employee who defaults in the payment of his or her income tax would be faced with stiff penalties such as failure-to-file, paying a fine etc.
Hence, the true statement regarding a W-2 form is that, as an employer you need a separate W-2 form from each of your employers in order to file your taxes.
The entry made at the end of the accounting period to record wages incurred but unpaid is Accrued expenses, An expense that is recorded on the books before it has been paid is referred to as an accumulated expense, also known as accrued liabilities.
The accounting period in which the expense is incurred is used to record it. Accrued expenses are listed as current liabilities on a company's balance sheet since they represent a company's obligation to make future cash payments. An estimated expense may not match the supplier's invoice, which will arrive at a later time.
According to the accrual method of accounting, costs are recorded as incurred rather than as paid when they are actually incurred.
To learn more about Accrued expenses, click here
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