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Sav [38]
3 years ago
14

On July 1, Goblette Company sold some machinery to another company. The two companies entered into an installment sales contract

at a predetermined interest rate. The contract required 5 equal annual payments with the first payment due on July 1, the date of sale. What present value concept is appropriate for this situation
Business
2 answers:
malfutka [58]3 years ago
7 0

Answer:

The value of all future payments discounted by the interest rate

Explanation:

Since the purchase of the asset is by installments to be paid in the future. The present value to be recognized is the sum of the future payments discounted at the predetermined interest rate.

The first payment due now will not have to be discounted but future payments will have to be discounted to ascertain the present value of the asset to be recognized in the balance sheet.

Nuetrik [128]3 years ago
5 0

Answer: Present Value of an annuity due of $1 for 5 periods

Explanation: Annuity could be described as a sort of investment which entitles the investor to receive a certain sum of money annually. Secondly, the present value of annuity refers to the current value of the payments to be paid from an annuity or future value payments paid from an annuity. It means "how much money would be needed today to fund a series of future annuity payments".

From the question above, the contract requires 5 equal annual amount, which is the period.

Therefore, the most appropriate present value concept will be:

Present Value of an annuity due of $1 for 5 periods

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nikdorinn [45]

Answer:

  • I think Ben should encourage the Senior Management to call a multidisciplynary meeting and do some research.

Explanation:

<em>I think Ben is right</em>. Even though the statement is technically correct, it may mislead customers.

Customers may interpret the phrase "<em>no sugar added</em>" as if the product did not contain any sugar.

Thus, customers interested in drinking beverages without sugar at all might think  they are "safe" consuming the smoothie beverage, when in reallity each <em>smoothie's bottle contains sugar 35 g of naturally occurring sugars from the fruit.</em>

Customers deserve to be certain on what they are buying, thus the labels must be a sincere help for them, and not ambiguos at all.

This is a "gray zone" and an example of what in ethics is called a dilema.

I think the decision should be shared by a wider team and based on some research.

I think Ben should encourage the Senior Management to call a multidisciplynary meeting, where the subject is widely discussed. Also, I would suggest Ben to do some research, look for precedents about labeling  in the industry, and try to learn the opinion of the FDA about this sensitive matter.

6 0
3 years ago
If an insurer makes a payment for a claim but the insured is dissatisfied with it, the insured must wait _____ days after proof
aniked [119]

Answer:

60 days

Explanation:

60 days must have elapsed before an insured can take a legal action concerning any dissatisfaction with payment for any claim. This is according to the Legal Actions Provision.

Cheers.

8 0
3 years ago
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yanalaym [24]
50% is what i found, not sure though

7 0
3 years ago
Which of the following is a standard control over cash disbursements? a. Checks and supporting documents should be marked "Paid"
Alchen [17]

Answer:

B. Checks should be sequentially numbered and the numerical sequence should be accounted for by the person preparing bank reconciliations

Explanation:

4 0
3 years ago
Which one of the following is not true concerning socializing in the workplace? <br> A. Socializing can keep you from reaching y
postnew [5]
The correct answer is D. Socializing can actually increase productivity. Although socializing outside of work can be productive for the work itself later on, socializing in the workplace can deter you from working and can ultimately be bad for the company. If you're always running around form office to office having fun and not working you're not doing your company a favor.
6 0
3 years ago
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