The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of materiality. In auditing and accounting, the term "materiality" refers to the importance or "significance" of a sum, a transaction, or a discrepancy.
According to the general accepted accounting principles (GAAP) criterion known as "materiality," all items that are conceivably likely to have an influence on investors' decision-making must be documented or disclosed in full in a company's financial statements. The significance of information in financial accounts of a corporation is referred to as materiality. A transaction or business decision is "material" to the business if it necessitates reporting to investors or other users of the financial statements and cannot be excluded.
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Answer:
equivalent annual cost: 19,784.81
The investment is not economically justified as it is cheaper to pay the fines than invest in the equipment to avoid them.
Explanation:
We calcualte the PMT of a 75,000 dollars equipment at 10%
PV 75,000
time 5
rate 0.1
C $ 19,784.811
EPA fines: <u> </u><u>$ 18,500.00 </u>
differential: (1, 284.81)
The answer is mortage according to edgnuity i just took the test and got a 100
Answer:
The question is not complete,find below complete questions:
If you purchased a $50 face value bond in early 2017 at the then current interest rate of .10 percent per year, how much would the bond be worth in 2027? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. In 2027, instead of cashing the bond in for its then current value, you decide to hold the bond until it doubles in face value in 2037. What annual rate of return will you earn over the last 10 years?
The bond is worth $50.50 in the year 2027
The annual rate of return is 7.07%
Explanation:
The future value of the bond is given by the below formula:
FV=PV*(1+r)^N
where PV is the present of the bond of $50
r is the rate of return of 0.10 percent=0.001
N is the duration of the bond investment of 10 years
FV=50*(1+0.001
)^10
FV=$50.50
However for the face of the bond to double i.e to $100, the rate of return can be computed thus:
r=(FV/PV)^(1/N)-1
where FV=$100 (double of $50)
FV=$50.50(current value in 2027)
N=10
r=($100/$50.50)^(1/10)-1
r=0.070707543
r=7.07%
Answer:
The correct answer is C. 7.22 percent
Explanation:
To find the arithmetic risk premium for the 5 year period, the formula is
Average risk premium for the period = Sum of risk premium for each year / number of years = ∑ra(i) - rf(i) / n
ra = asset or investment return / 100
rf = risk free return / 100
Where i represents each year.
Sum of risk premium for each year = (0.187 - 0.052) + (0.058 - 0.034) + (0.079 - 0.028) + (0.108 - 0.034) + (0.116 - 0.039) = 0.361
Average risk premium = 0.361 / 5 = 0.0722 = 7.22 / 100 = 7.22 percent
