Answer:
Adjustments are made at the end of the accounting period because making them on a daily basis would be inefficient.
Explanation:
Adjusting entries are adjustments made on accounts to recognize revenue or expenses that were not properly recorded before. They are usually done at the end of the month or the end of the accounting period to balance debit and credit records.
While you record daily transactions the same day in which they occur.
Answer:
Option C is correct P(q) = -0.005q^{2} + 2.25q - 100
Explanation:
Profit P(q) = R(q) – C(q)
Profit = Revenue – Cost
So,
P(q) = -0.005q^{2} + 2.5q - 100 – 0.25q
P(q) = -0.005q^{2} + 2.25q - 100
In order to find break even, you should plug 50 and 400 into the formula P(q) = -0.005q^{2} + 2.25q - 100
Answer:
The specialty or expertise of the financial institution
Their Management and Board composition
Their capital adequacy
Their performance
Explanation:
1) Specialty/Expertise:
Different financial institutions have their different area of strength/competence. Some are good in retail, some are good investment banking, some are good in deal making and consolidation etc. Depending on the purpose for which they are to be deployed, the area of their competence would matter most. E.g contracting a bank that is predominantly strong in retail banking to execute an M&A deal would not be ideal.
2) Management & Board composition:
The strength of a financial institution is as good as the quality of the people managing it. The expertise and know how of the management in key areas of business development, strategy, operations etc. will be vital for the growth of the financial institution
3) Capital adequacy
The adequacy of the capital structure of a financial institution is critical as it determines how much business and risk it can take on. By capital adequacy, we simply mean the ratio of its equity to debt. The less leverage its balance sheet is, the more business it can take on. This is critical if the volume of transaction one is about to transact with the financial institution is large.
4) Performance
The performance of a financial institution will show how efficient it is at generating returns and creating value to its shareholders and well as stakeholders. Every investor has an expectation of returns, a financial institution should be able to meet or exceed the market average for such performance yardstick as margin, ROI (return on investment), Return on Asset (ROA) etc
The supply curve for a good will be more elastic if "production inputs are readily available at a relatively low cost".
<u>Option: C</u>
<u>Explanation:</u>
The graphical interpretation is applied to understand the concept of supply curve for any good available in market. This is done by correlating the cost of a good or service and the supplied amount during a given period. In such representation the cost is mentioned vertically on the left axis, while the amount supplied is mentioned horizontally.
The coverage of responsiveness with respect to variations in cost of demand or supply products is understood as elasticity. Here when the small variations in cost leads to the large variations in consumed amount of product, thus curve become more elastic. While if a curve is found less elastic, which showcase that their is large variations in the price to impact a change in consumed amount.
Complete question:
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?
a. 150,000
b. 250,000
c. 0
d. 120,000
e. 170,000
Answer:
150,000
of goodwill should be attributed to the non-controlling interest at the date of acquisition
Solution:
A non-controlling interest (NCI) is a role in which a owner holds less than 50% of remaining and has little control over decisions. A minority ownership is often known as the minority interest. Non-controlling interests are calculated by their net worth and are not eligible for future right to vote.
Now , Calculate the amount
Cost(PP) - 1,600/0.8 = 2,000
FV - 1,850
GW = 1,850 - 2,000
= 150,000
