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3 years ago

Unearned Rent Revenue is

Business

1 answer:

Alex Ar [27]3 years ago

5 0

Answer:

The correct answer is option B.

Explanation:

The unearned rent revenue will be reported as a current liability. The reason behind this is that unearned revenue is prepaid revenue or advance payments for goods or services that the firm has to provide in the future.

Unearned revenue is a liability because the goods or services are yet to be provided and there is a chance that the order might get canceled, or seller might not be able to provide to them.

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Kevin analyzes the quarterly earnings statements of some fifty obscure small-cap stocks. He then buys according to the earnings

mamaluj [8]

Answer:

Semi-strong form efficiency.

Explanation:

Semi-strong form efficiency contends that security prices have factored in publicly-available market and that price changes to new equilibrium levels are reflections of that information. It is considered the most practical of all Efficient Market Hypothesis(EMH) hypotheses but is unable to explain the context for material nonpublic information (MNPI). It concludes that neither fundamental nor technical analysis can be used to achieve superior gains and suggests that only MNPI would benefit investors seeking to earn above average returns on investments.

6 0

3 years ago

Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupo

kodGreya [7K]

Answer:

5.4%

Explanation:

Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $900.90, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation

Face value of bond = coupon amount / interest rate

1000 = 80 / 8%

Therefore 900.9 = 80 / revised interest rate

multiply both sides by the 'revised interest rate

revised interest rate x 900.9 = 80

Hence, revised interest rate = 80 / 900.9 = 9%

Secondly if the company’s tax rate is 40%, the component cost of debt for use in the WACC calculation = kd (1 - t)

where:

kd = Cost of debt

t = tax rate

Therefore cost of debt for use in the WACC calculation = 9% (1-0.4) = 5.4%

4 0

3 years ago

The aggregate demand curve

laiz [17]

Answer:

<u>B. shows planned purchase rates of goods and services at various price levels.</u>

Explanation:

The aggregate demand is the total demand for final goods and services in the economy over a given period of time. And is often distinguished as the effective demand curve. That is the demand for the GDP of the nation.

As it specifies all the goods and the services that are to be purchased at all the possible levels. Hence this demand curve shows us the real output given on the horizontal axis. Thus the curve shows the quantity of the output that is demanded and the aggregate of the all price level.

5 0

3 years ago

According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if eac

zzz [600]

Answer:

the low opportunity cost producer.

Explanation:

A person or nation has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries or people.

For example, let's assume country x produces either 10 Apples or 5 oranges in 1 hour while country y produces either 20 Apples or 2 oranges in one hour. The opportunity cost for country x of producing apples and oranges are 0.5 and 2 respectively. While for country y, the oopportunity cost of producing apples and oranges are 0.1 and 10 respectively.

Country y has an opportunity cost and comparative advantage in the production of Apples while country x has a comparative advantage in production of oranges.

I hope my answer helps you

5 0

3 years ago

Vasco Company purchased equipment on January 1, 2001 at a purchase price of $50,000. Vasco paid $2,500 in shipping costs on the

Lynna [10]

Answer:

The amount of depreciation expense is $3,871.86.

Explanation:

Sum-of-the-years digits method is determined by: (Remaining useful life/Sum of the years' digits) x Depreciable cost.

Depreciable cost = Cost - Salvage value

Depreciable cost = $50,000 + $2,500 - $5,000 = $47,500

Insurance premium is usually for a period of 1 year. This will be treated as prepayment instead of being added to the cost of the equipment. Shipping cost is added based on the recommendation of IAS 16 Property, Plant and Equipment.

Depreciation expense = 6/21 x $47,500 = $13,571.43 for Year 2001

Depreciation expense = 5/21 x $47,500 = $11,309.52 for Year 2002

As at December 2002, the accumulated depreciation will be $13,571.43 + $11,309.52 = $24,880.95; so, net book value is $52,500 - $24,880.95 = $27,619.05.

Change in estimate: 8/55 x $27,619.05 - $1,000 = $3,871.86.

55 = 10+9+8+7+6+5+4+3+2+1

7 0

3 years ago