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Vika [28.1K]
3 years ago
10

Which of the following statements is true? Select one: a. In an annuity due payments occur at the end of the period. b. In an or

dinary annuity payments occur at the end of the period. c. A perpetuity will mature at some point in the future. d. One cannot calculate the present value of a perpetuity.
Business
1 answer:
pashok25 [27]3 years ago
5 0

Answer:

b. In an ordinary annuity payments occur at the end of the period

Explanation:

<u>Why the other options are false:</u>

A.- On annuity due, the payment occurs at the beginning of the period.

B.- The perpetuity will not mature. It will yield interest for an indefinite period of time

C.- The present present value of a perpetuity is calculate as follow:

cash inflow/ interest rate = perpetuity

On an ordinary annuity, the payment occur at the end of the period, which is correct.

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A computer company's yearly inventory cost is 40 percent (which accounts for the cost of capital for financing the inventory, wa
aksik [14]

Inventory Costs plays a major role in ascertaining working capital requirements as well structuring cash flow statement.

Explanation:

In the given example,  

inventory cost  40 percent

Inventory Value $400 million

 

Ratio of inventory cos ts to inventory value = Inventory Cost / Inventory Value .

so in the current case it will be  40% x/$400 million

Hence, Inventory Cost 160 Million

Since the cost is fairly on a higher side at 40$ it should try to reduce it which will help in improving its bottom-line.

Company should focus on offering on discounts and promotions and reduce Obsolete Stock.  

It should work on restructuring and organizing warehouse costs by prioritizing inventory based on their movements.  

The procurement team should order in minimum quantities and benchmark reorder point.

3 0
3 years ago
Privo Co. purchases a machine that cost $15,000. Privo estimates a 5-year life with no salvage value. The first three years of d
Ierofanga [76]

Answer:

Double-declining balance method

Explanation:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 4

= 20%

Now the rate is double So, 40%

In year 1, the original cost is $15,000, so the depreciation is $6,000 after applying the 50% depreciation rate

And, in year 2, the depreciation is ($15,000 - $6,000) × 40% = $3,600

And, in year 3, the depreciation is ($15,000 - $6,000 - $3,600) × 40% = $2,160

6 0
3 years ago
If a court ordered you to pay for a pizza that was mistakenly delivered to your home and which you ate, they would be issuing an
NISA [10]
That is false


The court would never do that , but before you would eat , you need to check if this belong to you or not
3 0
4 years ago
1.Economics is the study of ____________________ and _________________________.2.What is opportunity cost
jolli1 [7]

Answer: See explanation

Explanation:

Economics is the study of human behavior and also how resources are allocated in the society. Economics studies the reason for the behavior in the individuals, firms or government when certain situations happen in the economy.

Opportunity cost is refered to as n alternative cost that's, the cos if what we forgo when we make an alternative decision. For example, if I purchase a book for $20, the opportunity cost is something else that I could have used the $20 for.

4 0
3 years ago
On January 1, 2021, Red Inc. issued stock options for 200,000 shares to a division manager. The options have an estimated fair v
morpeh [17]

Answer:

$400,000

Explanation:

The compensation expense to be recognized in 2021 is portion of the options value for one year.

Total value of the options=200,000*$6=$1,200,000

Compensation expense per year=fair value of the options/vesting period

fair value of the options is $1,200,000

vesting period is 3 years

compensation expense per year=$1,200,000/ 3 years=$400,000

The $400,000 compensation expense is debited to compensation expense account and credited to paid in capital-stock options $400,000 for each of the vesting period until the paid in capital -stock options account balance becomes $1,200,000 at end of year 3

6 0
3 years ago
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