<span>consumer to share liability with a company.</span>
Answer:
The closing process is necessary in order to confirm that net income or net loss and owner withdrawals for the period are closed into the owner's capital account.
Explanation:
Most economies around the world follow a specific accounting period which is commonly referred to as financial year or tax year. Before a new financial year begins, the accounts from the ongoing financial year have to be closed legitimately through a process called the 'closing process'. This process culminates in confirming that the net income secured or the net loss bore by the owner is included in no other account than the owner's capital account.
In order to carry out the closing process, the accountant has to commence with identifying the accounts that are required to be closed with or before the ending of the predefined financial period. He then has to record the last entries in these accounts as 'closing entries'. Once the accounts are closed, he has to calculate the trial balance and interpret the outcome. Closing of temporary accounts through a valid closing process dispenses the ease of calculating profit and loss in any given financial period coming to end.
Answer:
In every form of analysis, it is always safer to take a macro or holistic view of the situation. This is true for the investment performance of a manager. One investment decision that went right does not suffice to classify an investment portfolio manager as proficient, neither is one that went south enough to tag him deficient.
The forecasting ability of managers, on the balance of probability, will vary for different cases, with a helicopter view of providing a more accurate measure of their performance.
However, if it was possible to analyse the market for volatility and adjust our forecasts it becomes unnecessary to look at and analyse all the information from a 12-month cycle before coming to terms about the performance of the manager.
Cheers!
Answer:
Neither project should be chosen
Explanation:
Given that
Each project cost of capital is 12%
The IRR of project A is 11.4%
And, the IRR of project B is 11.1%
As we can see that the cost of capital of each project with their internal rate of return so no project should be selected
Therefore the above statement represent an answer
The same should be relevant
We
should note that the bond investment account is recorded at cost by the Bondholder
or Investor.
The
cost or price is calculated as:
Cost
= $90,000 * 86.4%
Cost
= $90,000 * 0.864 = $77,760
Therefore,
the entry to record should be:
<span>debit
Held-to-Maturity Investment in Bonds for $77,760 and credit Cash for $77,760</span>
