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3 years ago

Renting provides _ flexibility but can lead to _ costs in the long-term.

Business

1 answer:

castortr0y [4]3 years ago

5 0

Renting provides INCREASED flexibility but can lead to HIGHER costs in the long-term.

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Exercise 15-14 Presented below are two independent situations. 1. Flinthills Car Rental leased a car to Jayhawk Company for one

IrinaVladis [17]

Answer:

Part 1

Dr Lease rentals $300........ Expense

Cr Cash Account $300

Part 2

Dr Leased Equipment $63,536

Cr Finance Lease Liability $63,536

Explanation:

Part 1. Under the operating leases the lessee pays the monthly rentals which must be accounted for as an expense and the double entry is as under:

Dr Lease rentals $300........ Expense

Cr Cash Account $300

Part 2. Under the finance lease agreement, the lessee pays the value of the asset and the interest as well. So after the date of agreement when the asset is handed over the journal entry would be recording of the equipment received, which would written at its fair value or present value of the payments made. The journal entry would be:

Dr Leased Equipment $63,536

Cr Finance Lease Liability $63,536

8 0

3 years ago

Which of the following statements regarding perpetuities is FALSE? A. A perpetuity is a stream of equal cash flows that occurs

Xelga [282]

Answer:

The answer is: C) PV of a perpetuity = StartFraction r Over Upper C EndFraction (I guess this means PV = r / C, which is FALSE)

Explanation:

The formula for calculating the present value of a perpetuity is:

PV = C / r

Where PV = Present Value, C = cash flow, r = discount rate.

A perpetuity is a stream of equal cash flows that lasts forever (perpetually).

The formula for calculating the present value of a perpetuity is simple, so there is no reason to spend time calculating the present value of each cash flow, since there are infinite cash flows.

A consol bond s a type of perpetuity issued by the British government (also by the US government)

7 0

3 years ago

Clemens Inc. is considering a $100 million investment in a new line of soft drinks. However, $100 million is a huge investment f

BARSIC [14]

Answer:

Expand

Explanation:

Since future market demand is not ceratin so company use to invest portion of fund to determine demand of product and opportunity in market. if they find that there is demand and opportunity in market then they invest large amount.

This process is called real option to Expand the business.

Hence, option (expand) is correct answer.

6 0

3 years ago

In return for participation and cooperation in instituting a major organizational change, marietta textiles employees received t

jarptica [38.1K]

<span>When employees feel like lose powers or tasks during the change process, it is important to keep them motivated. Offering financial or mental incentives can move employees into a positive direction. The employee can be offered incentives to leave the company early, their contracts may be adjusted or another job or promotion is offered. This method is actually called Negotiation and rewards.</span>

6 0

3 years ago

In February of the current year, Paul and Jean, a married couple, cashed a qualified Series EE savings bond they bought in Novem

Sergeeva-Olga [200]

Answer:

Explanation:

Calculation of amount of interest income Paul and Jean can exclude = $I \frac{E}{P+I}$

where I = interest received, E = educational expenses, P = principle.

Proceeds received $7,132

Principle $5,000

Interest $2,132

Qualified Higher Educational expenses $4,000

=2132*(4000/(5000+2132))= $1,195.74

Answer is 1,195.74 exclusion

4 0

3 years ago

Renting provides _________ flexibility but can lead to _________ costs in the long-term.

Renting provides _ flexibility but can lead to _ costs in the long-term.