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8090 [49]
3 years ago
6

If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is view

ed as "other than temporary" because the company has incurred a credit loss on the investment:
a. The investment is not written down to fair value.b. The investment is written down to fair value, and the impairment loss is recognized in net income.c. The investment is written down to fair value, and the impairment loss is recognized in accumulated other comprehensive income.d. The investment is written down to fair value, and only the noncredit loss is included in net income.
Business
1 answer:
olganol [36]3 years ago
7 0

Answer: The investment is written down to fair value, and only the credit loss component of the impairment loss is recognized in net income.

Explanation: The fair value of the debt is simply its value if you adjust the price of the debt so that a buyer would be earning the market rate of interest. If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is viewed as "other than temporary" because the company has incurred a credit loss on the investment then the investment is written down to fair value, and only the credit loss component of the impairment loss is recognized in net income.

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Compare and contrast modern workplace, social, and environmental ethical dilemmas in the hospitality industry.
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In the recent years, investors and hoteliers have been increasingly made aware of how the environment and social life impacts hotel operations and developments. Factors that have contributed to this awareness include the desires of hotel owners and operators to reduce costs of operations, change required for sustainable development, increased regulations that pay attention to development and operations and the way attitudes of investors are changing towards the environment. Sustainability is still a difficult task to measure in the hospitality industry. Business environment faces many challenges because of its dynamic nature

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2 years ago
Suppose that in a given month $40 million is deposited into the banking system while $50 million is withdrawn. Assume that the r
vladimir1956 [14]

Answer: Money Supply Decrease of $50 million.

Explanation:

$40 million was deposited while $50 million was withdrawn.

The net change in the banking system would therefore be,

= 40 - 50

= -$10 million

($10 million ) means that more money left than came in.

The money supply can be calculated as the net change multiplied by the money multiplier.

The Money Multiplier is denoted as 1/reserve requirement.

Change in Money Supply is,

= -10 million * 1/20%

= -$50 million

Going by the negative number it means that Money Supply reduces by $50 million.

8 0
2 years ago
The job of an ethics officer is to serve as a counselor for employees
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True, an ethics officers' role is to act as a counsellor for employees as well as an investigator for the firm.

The Ethics Officer is the company's inner or internal control point for ethical and improper conduct, allegations, objections, and improprieties, as well as providing leadership and guidance on corporate governance problems.

Learn more:

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3 0
3 years ago
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South
Svet_ta [14]

Answer:

1. Quuen Land Division

Margin 6.50%

ROI 11.70%

New South Wale Division Margin

Margin 3.50%

ROI 15.75%

2. New South wale Division

Explanation:

1. Computation for each division's margin, turnover, and return on investment (ROI)

QUUEN LAND DIVISION MARGIN

Using this formula

Margin =Net operating income/Total Sales

Let plug in the formula

Margin =$70,200/ $ 1,080,000

Margin=6.50%

QUUEN LAND DIVISION ROI

First step is to determine the Turnover using this formula

Turnover=Total sales/Average Asset

Let plug in the formula

Turnover= $ 1,080,000 /$600,000

Turnover =1.8 times

Now let determine the ROI using this formula

ROI =Margin * Turnover

Let plug in the formula

ROI=6.50%*1.8

ROI=11.70%

NEW SOUTH WALE DIVISION MARGIN

Margin =$ 83,475 / $ 2,385,000

Margin=3.5%

NEW SOUTH WALE DIVISION ROI

First step is to determine the Turnover using this formula

Turnover=Total sales/Average Asset

Let plug in the formula

Turnover= $ 2,385,000 /$530,000

Turnover =4.5 times

Now let determine the ROI using this formula

ROI =Margin * Turnover

Let plug in the formula

ROI=3.5%*4.5

RO1=15.75%

2. Based on the above calculation the divisional manager that seems to be doing the better job

Is NEW SOUTH WALE DIVISION because the ROI is greater.

3 0
2 years ago
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