All categories

2 years ago

Turkey Corp. provides services to customers on account for $3,000. Recording this transaction will include a __________.

Business

1 answer:

Luden [163]2 years ago

8 0

Answer:

e) Credit to Revenue

Explanation:

The services provided to customers will be an increase of revenue and an increase in revenues is a credit transaction.

Since the question does not mention that the services were billed therefore the accounts receivable will not be increased till it is billed and thus option a) is not applicable.

The other options are not relevant since there is no cash collection involved, and no liabilities involved.

You might be interested in

Turnbull Co. is considering a project that requires an initial investment of $1,708,000. The firm will raise the $1,708,000 in c

Anna35 [415]

Answer:

11.06%

Explanation:

Calculation to determine What will be the WACC for this project

First step is to calculate the Weight of Debt

Weight of Debt = $750,000 / $1,708,000

Weight of Debt = 0.4391

Second step is to calculate the Weight of Preferred Stock

Weight of Preferred Stock = $78,000 / $1,708,000

Weight of Preferred Stock = 0.0457

Third step is to calculate the Weight of Equity

Weight of Equity = $880,000 / $1,708,000

Weight of Equity = 0.5152

Fourth step is to calculate After Tax Cost of Debt

After Tax Cost of Debt = 11.1% * (1 – 0.40)

After Tax Cost of Debt = 6.66%

Now let calculate WACC using this formula

WACC = (Weight of Debt * After Tax Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Equity * Cost of Equity)

Let plug in the formula

WACC = (0.4391 * 0.0666) + (0.0457 * 0.1220) + (0.5152 * 0.1470)

WACC = 0.02924406+0.0055754+0.0757344

WACC =0.1106*100

WACC =11.06%

5 0

2 years ago

TRUE OR FALSE

GenaCL600 [577]

I would say this is true

7 0

3 years ago

Read 2 more answers

Cash flows from activities include both inflows and outflows of cash from the external funding of a business. True or false?.

user100 [1]

True.

Cash flows from activities include both inflows and outflows of cash from the external funding of a business.

<h3>Cash Flow from Financing Activities: What is it? </h3>

The net amount of financing a business generates during a specific time period is called cash flow from financing activities.
The issuing and repayment of equities, the payment of dividends, the issuance and repayment of debt, and capital lease obligations are all examples of financial activity.

<h3>What Are the Different Types of Cash Flows? </h3>

Money coming into a business is known as cash inflow, and it may come through sales, investments, or financing.
The reverse of a cash outflow is a cash inflow, which is money entering a business.

<h3>What three different forms of cash flows are there?</h3>

To assess the liquidity and solvency of the company, organizations should monitor and analyze three different types of cash flow:

cash flow from operating operations
cash flow from investing activities
cash flow from financing activities.

The cash flow statement of a corporation includes all three.

Items like dividends and interest payments are excluded.
stock, debt, or alternative sources of funding.
Asset depreciation for capital goods

To learn more about financing activities visit:

brainly.com/question/16377227

#SPJ4

3 0

1 year ago

Which one of the following is the most likely reason why a stock price might not react at all on the day that new information re

Vaselesa [24]

Answer:The information was expected is the most likely reason why a stock price might not react at all on the day that new information related to the stock’s issuer is released. Assuming the market is semi strong form efficient.

<u>Explanation:</u>

The major reason that the stock price might not react to the information related to that stock was the expectancy of information in advance. It was a piece of expected information. When something is expected then our response towards it does not bring much change.

Similarly, when it is already expected to get some information related to the stock, on receiving that information the stock price does not react. It means it might neither fall nor rise.

5 0

2 years ago

It is illegal for a government to spend money for any purpose unless a valid appropriation for that purpose exists. Does this le

mixas84 [53]

Answer:

Yes

Explanation:

it ensure good financial management as it requires a valid appropriation to spend an amount. it means the budget authority to the government is subject to a valid purpose. this legal rule helps to curtail unnecessary spending and assure that funds go where they are most needed

7 0

3 years ago