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chubhunter [2.5K]
3 years ago
13

A municipal bond is purchased at a discount. Over the course of the life of the bond, the book value is increased while the cust

omer holds the security. This is performed using which of the following accounting methods
A) This is referred to as marking up the security.
B) This occurs when we see the security appreciate in value.
C) This is referred to as accretion of the security.
D) This occurs when we amortize of the security.
Business
1 answer:
jasenka [17]3 years ago
6 0

Answer:

C) This is referred to as accretion of the security.

Explanation:

The security is amortized when the principal and interest is employed in paying down the debt.

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Suppose that in Problem 13 a Type 2 service objective of 95 percent is substituted for the stock-out cost of$ 12.80. Find the re
evablogger [386]

Answer:

(Q, R) = (1555, 1400)

shortage imputed = $0.388

Explanation:

Lot size-reorder point system is one of the multi period models. This system is denoted by decision variables (Q, R). This multi period model is implemented when there is uncertain demand in inventory control.

nevertheless, in the simple EOQ model, demand is known and fixed. But when the demand is random, these lot size-reorder point (Q, R) systems allow random demand.

There are two decision variables in a (Q, R) system:

Order quantity, Q and

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Additional steps are attached as files

8 0
4 years ago
Suppose a firm estimates its WACC to be 10%. Should the WACC be used to evaluate all of its potential projects, even if they var
Mademuasel [1]

Answer:

The WACC will be 10% for average risk

below when the risk is low

and above 10% when the risk is higher than average

as the cost of capital (required return from the stockholders) will increase pushing the WACC higher

Explanation:

As the WACC is composed by the cost of debt and the cost of equity a higher risk will require a better return for the investor thus, the equity proportion that determinates the WACC will change along the project risk.

6 0
3 years ago
Franco's Pizzeria sells slices of pizza for $2.00. According to the market demand schedule and assuming ceteris paribus, what ha
Furkat [3]
Due to the increase in the price of the pizza, it is conclusive that the demand will decrease. Assume that the amount he will earn will stay the same and it is the product of the number of pizza and the price, the choice that would satisfy this is the third choice. 
8 0
3 years ago
On June​ 1, Addison Company purchased $ 10,000 of inventory on account from Garrison Company. Garrison offers a 4​% discount if
IRINA_888 [86]

Answer:

c. a debit to Inventory for $10,000

Explanation:

Whenever goods are purchased on a discount to be received on payment basis, the inventory is first recorded at cost.

Also as per the general rule, discount is a kind of income, and incomes are recorded only when earned, therefore, the cost of inventory shall be reduced by 4% only when the payment is made, therefore the inventory on the date of purchase shall be recorded at $10,000 only and not for $9,600.

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4 0
3 years ago
Spending, saving, and investing to have the kind of life you want and financial security can be achieved by
melomori [17]

Answer:

Personal financial planning

Explanation:

If you plan out how you will spend, save, and invest your money, you can get to many places in live.

5 0
3 years ago
Read 2 more answers
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