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vekshin1
3 years ago
6

A purchased limited-life intangible asset ________ amortized and is impairment tested using ________. (a)is; the recoverability

test and then the fair value test.(b)is not; the fair value test only.(c)is not; the recoverability test and then the fair value test.(d)is; the fair value only.
Business
1 answer:
Pani-rosa [81]3 years ago
7 0

Answer: Option A

Explanation: Assets having no physical existence are called intangible assets for example :- goodwill, patent rights.

Amortization can be defined as the method of distributing the value of intangible assets over its useful life, thus for amortization the asset must have a definite life.

While amortizing , first its recoverability is evaluated by comparing fair value with carrying value and after that the difference in both is calculated.

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Hosung Company's Cash account shows a balance of $801.65 as of August 31 of this year. The balance on the bank statement on that
Sergio039 [100]

Answer:

$603.65

Explanation:

The correct and accurate cash balance need to be calculated. This is done by preparing a Bank Reconciliation Statement.

Bank Reconciliation Statement.

Balance as per Bank Statement                                                $1,383.00

Add Outstanding Lodgments                                                          $0  

Less Unpresented Checks ($260.50 + $425.10 + $331.00)   ($1,016,60)

Add Error on Bank Statement                                                     $237.25

Balance as per Cash Book                                                          $603.65

therefore,

the adjusted ledger balance of cash as of August 31 is $603.65

5 0
3 years ago
How can we avoid water pollution​
MrRissso [65]
We can avoid water pollution by keeping our water clean and trashless.
7 0
3 years ago
Read 2 more answers
A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What m
prisoha [69]

Answer:

The risk free rate is 3.325%

Explanation:

The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on market
  • (rM - rRF) gives us the risk premium of market

We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,

Let rRF be x.

0.1185 = x + 1.24 * (0.102 - x)

0.1185 = x + 0.12648 - 1.24x

1.24x - x  =  0.12648 - 0.1185

0.24x = 0.00798

x = 0.00798/0.24

x = 0.03325 or 3.325%

3 0
3 years ago
Other things equal, a firm will have to pay a higher coupon rate on its subordinated debentures than on its second mortgage bond
spin [16.1K]

The statement "Other things equal, a firm will have to pay a higher coupon rate on its subordinated debentures than on its second mortgage bonds."  is True

This is further explained below.

<h3>What is a Mortgage?</h3>

Generally, MBS stands for mortgage-backed securities, which are bonds that are backed by mortgages and other types of real estate loans.

They are produced when a number of these loans, which often have qualities that are comparable to one another, are pooled together.

A company that operates for the purpose of making a profit and is often structured as a partnership in order to carry out the provision of professional services, such as legal or accounting work, is referred to as a firm.

The maximization of profits is the overarching goal of the business, according to the theory of the firm.

In conclusion, It is correct to say that, "all things being equal, a company will be required to pay a greater coupon rate on its subordinated debentures than on its second mortgage bonds."

Read more about mortgage bonds

brainly.com/question/8084409

#SPJ1

8 0
1 year ago
Margin of Safety Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $4
valina [46]

Answer:

Margin of safety - Units =3350

Margin of safety - Sales Revenue = $251250

Explanation:

Margin of Safety indicates how much sales may decrease before a loss can be made.

<u>Margin of safety - Units</u>

Margin of safety - Units = 5000-1650 =3350

<em>Margin of Safety as a % = 3350/5000 ×100 = 67%</em>

<u>Margin of safety - Sales Revenue</u>

Expected Sales = (5000 × $75) =$375000

Margin of Safety = $375000 × 67% = $251250

3 0
3 years ago
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