Answer:
The correct option is (b)
Explanation:
Managerial accounting is for internal purpose for the managers for decision making. It is not mandatory as per GAAP, unlike financial accounting. Transactions are recorded as per the understanding of managers and not as per specific standards,
Managerial accounting focuses on data being relevant and not necessarily objective. Since, it caters to internal users, it is customized as per their requirement. Financial accounting, on the other hand needs to be highly objective as it caters to a wider audience who need transparent and reliable financial information.
Therefore, managerial accounting focuses on data relevance over data objectivity.
Answer: BRIDGE LOAN
Explanation: As the name says the bridge loan are the type of loans that bridge the difference between the new home of the buyer and the new mortgage in case the buyers existing home hasn't been sold yet. It is a type of short term loan, the usual time period for such kinds of loan is 2 weeks to 3 years.
In this case Karen and Jay have purchased the new house but sale of their old house is still pending thus from the above explanation we can conclude that bridge loan would be appropriate for them.
I think the answer is rating scale test! hope this helped
Answer:
(1) Payback period is 4.588 years or 4 years and 215 days
(2) 5.13%
Explanation:
(1)
Payback period is the time period in which Initial Investment made in the project is recovered in the form of cash inflows.
Payback period = Initial Investment / Annual net cash flow
Payback period = $390,000 / $85,000 = 4.588 years = 4 years and 215 days
(2)
As per given data
Net Income = $20,000
Initial Investment = $390,000
Annual rate of return is the ration of net income to the investment made in the project.
Annual rate of return = Annual net Income / Initial Investment
Annual rate of return = ($20,000 / $390,000) x 100 = 5.13%
Answer:
A)0.67
Explanation:
Coefficient of variation can be regarded as the method that is usually devices in the assessment of the total risk per unit of return in a particular investment.
To calculate the investment's coefficient of variation, we use the expresion below
Coefficient of variation = standard deviation/expected return.
Given:
expected return = 15%
standard deviation = 10%.
Coefficient of variation =10/15
= 0.67
Hence, the investment's coefficient of variation is 0.67
