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3 years ago

Costs of Acquiring Fixed Assets

Business

2 answers:

Zepler [3.9K]3 years ago

8 0

Answer:

The answer is given below:

Explanation:

1.Yes

2.Yes

3.Yes

4.Yes

5.Yes

6. Yes

7.No

8.Yes

9.Yes

10.No

11.No

12.No

As a rule of thumb,those costs which increase the value or useful life of asset should be capitalized where as those costs that are incurred to maintain the usage of asset are revenue expenditure and should be charged to income statement not the asset.

Olegator [25]3 years ago

7 0

Answer:

Yes

Explanation:

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The Fed wants to increase the money supply (which is currently $4,000) by $200. The money multiplier is 3, and people hold no ca

Greeley [361]

Fed can achieve its goals using the given tools as shown below.

<h3>What is money supply?</h3>

The money supply (or money stock) in macroeconomics refers to the entire volume of currency held by the public at a given point in time.
There are numerous definitions of "money," but common measures often include currency in circulation and demand deposits (depositors' easily accessible assets on financial institutions' accounts).
A country's central bank may utilize a definition of what constitutes legal money for its own reasons.
Money supply data is recorded and released, typically by a government agency or the country's central bank.
Changes in the money supply are monitored by public and private sector experts because it is believed that such changes affect the prices of securities, inflation, exchange rates, and the business cycle.

In the given situation, Fed can achieve its goals using the given tools:

Change the reserve requirement - The Fed should lower the reserve requirement to 48 ± 1 percent.
Change the discount rate - The Fed should lower the rate by 12.50 ± 0.01 percentage points.
Use open market operations - The Fed should buy $125.00 ± 0.01 worth of bonds.

Therefore, Fed can achieve its goals using the given tools as shown.

Know more about money supply here:

brainly.com/question/3625390

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The complete question is given below:
The Fed wants to increase the money supply (which is currently $5,000) by $250. The money multiplier is 2, and people hold no cash. For each 1 percentage point, the discount rate falls, and banks borrow an additional $10. Explain how the Fed can achieve its goals using the following tools:

a. change the reserve req.

b. change the discount rate.

c. use open market operations.

5 0

2 years ago

Charleston, Inc. has Accounts Receivable of $280,000 and an Allowance for Doubtful Accounts of $18,000. If it writes-off a custo

hammer [34]

Answer: $262,000

Explanation:

The Net Accounts Receivables refers to the amount that the customers of the company purchased on credit.

The Allowance for Doubtful Debt Account is the amount that's the company estimates it will not receive from it's credit customers so as to cater for the risk that some won't pay.

Net Accounts Receivables is therefore calculated by removing the Allowance for Doubtful Debt from the Accounts Receivables.

= Gross Accounts receivable - Allowance for Doubtful Accounts

= 280,000 - 18,000

= $262,000

It is worthy of note that the Customer balance written off of $1,800 will not be taken from the Accounts Receivables Account because it has already been catered for in the Allowance for Doubtful Debts. It will therefore be removed from the Allowance for Doubtful Debt Account.

6 0

3 years ago

Read 2 more answers

What infrastructure is needed to manufacture the stationery-line

Trava [24]

Answer:

There’s a lot of competition in this market, so you’ll need to discover some things that give you a competitive advantage.

Expertise

Are you already an expert in stationary lines and the printing business? If not, read up and learn as much as you can. A lot of businesses fail because the owners didn’t know enough about the industry.

Designs

How unique are your designs? Have you obtained copyrights for them? Try to get feedback from people other than friends and family who will be more objective to hone in on the big hits and retire those that don’t elicit positive responses.

Unique Selling Proposition

What are you doing that’s significantly different to the competition? Identify a significant pain point that customers experience in this industry. There are already an overwhelming number of designs, so could it be pricing, shipping, customer service or something else? How are you going to do things differently and stand out?

Define Your Market

Who is your ideal customer? For example, if you are designing wedding stationary, what’s the age, income level, and interests of your typical customer? Sometimes the customer ends up being the mother, friend or significant other rather than the ultimate user. Once you’ve narrowed this down, then think of ways to best reach your customer. Let’s say your ideal customer loves going to the dog park, then you could start by approaching people there and giving out samples.

Gain Testimonials

I’m running with the assumption you’re planning on selling stationary direct to consumer, in which case positive testimonials and reviews are even more important. People place much more trust in a brand and product if there are stories from real people (get pictures and video as much as possible) who love it. In the beginning, you may consider giving out your product or having a special discount in exchange for reviews.

Figure out Production

Are there printing companies you know of the specialize in producing stationary for designers? Get some quotes and compare to how much it would cost for you to buy the appropriate printing machines and produce them yourself. Don’t forget to include the time you’ll save not having to print it yourself, but make sure you get shipping times from these companies. Sometimes larger production companies have access to significant discounts on the bulk materials used to create the product than you will be able to obtain on your own. You may consider starting with a small set up of your own just to produce mock ups and samples even if you otherwise outsource your production.

3 0

2 years ago

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF. Assuming that th

qaws [65]

Answer:

The correct answer is: a new law that interferes with economic efficiency.

Explanation:

A production possibilities frontier shows all the points where production is efficient. The resources are being completely employed. The points above the frontier are unattainable. The points below the frontier are attainable but inefficient.

If there is a movement from the frontier to a point below it. This means inefficient allocation of resources. It can happen because of some law interfering in efficient allocation of resources.

3 0

3 years ago

Theoretically, a company comparing multiple projects with similar investment requirements and durations would select projects wi

Elden [556K]

Answer:

D.)

the highest IRR

Explanation:

Here are the options to the question :

A.)

the IRR that is closest to zero

B.)

a negative IRR

C.)

the lowest IRR

D.)

the highest IRR

IRR is a capital budgeting method.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The higher the IRR, the more profitable the project is.

In the absence of certain restrictions, the project with the highest IRR should be chosen

4 0

3 years ago