Answer:
True
Explanation:
When machine is purchased, then the assets increase by the carrying or purchase value of the machine purchased. Here, it is of $1 million.
Further, when it is purchased as against any credit, it creates a liability with the same amount.
Since here also the liability amount = $1 million, it will be recorded with the same.
As there is no involvement of Equity or Retained earnings this do not lay any impact on carrying value of owners equity.
Thus, it is True.
Answer:
Short-selling long-term bonds and taking long position on short-term assets
Explanation:
When the yield curve ascends, the long-term bond's price will go down. Hence, do short-sell the long-term bonds. On the other hand, short-term asset's price will be depreciated because Fed tightens credit and raise short-term rate, which is the chance to purchase and make profits from capital gains.
Answer:
we will save 500,000 dollars worth of inventory.
Explanation:
If sales are 4,000,000 then the expected inventory will be 1,000,000
Giving an inventory turnover of:
4,000,000 / 1,000,000 = 4
IF we double the inventory turnover then:
4,000,000/inventory = 8
So the inventory will be of: 4,000,000/8 = 500,000
the difference is for 500,000
Answer:
we can look at this problem from 2 different point of views:
if you have francs and wish to buy pounds: then you take 12 francs and purchase 1 ounce of gold, and then you sell it for 6 pounds. This way you will only spend 2 francs per each pound instead of 2.2.
if you have pounds and want to make a gain: you take 6 pounds and purchase 13.2 francs and you then buy 1.1 ounces of gold. Then you sell the 1.1 ounces of gold in exchange for 6.6 pounds.
Any of the scenarios does not include any transaction prices nor shipping costs, it is only theoretical.
Answer:
The answer is $2.64 per unit and $13.2%
Explanation:
Solution
Given that:
The formula for calculating inspection activity of inspection before improvement is stated below:
Inspection Activity before Improvement = Total Activity Cost/Total Units of Production
Using the values provided in the question, we have,
Inspection Activity before Improvement = 105,600/40,000 = 2.64 per unit
Now,
he formula for calculating inspection activity after improvement is given below:
Inspection Activity after Improvement = (Total Activity Cost*Inspection Activity Percentage)/Total Units of Production
Using the values provided in the question, we get,
The Inspection Activity after Improvement = (105,600*5000)/40,000 = $13,200 per unit or $13.2 per unit
