Answer:
Yes, earning sensitivity will change in the long run
Explanation:
Earnings Sensitivity Analysis helps in determining the impact of an independent variable over a particular dependent variable based on various assumptions. This comparison on its own, measures changes in the long run.
This technique helps managers in determining the change in net interest income in correspondence to wide range of interest rates.
The repricing gap in the long term window will measure of the difference between the dollar value of assets that will reprice and the dollar value of liabilities that will reprice within a specific time period.
A possible implication is potential to receive a new interest rate.
The assets that could explain the positive reprising gap is Accounts payable and investments.
Two examples of Liabilities are: Short term loans and accounts payable.
Answer:
The correct answer would be option B, Consumer Need.
Explanation:
Business objectives are basically the mission of the organization. Mission of the company is the purpose of the organization and the purpose of the organizations is usually to meet the customers' needs and fulfill their demands and desires through their products or services. The product or the service of the company is the way to meet and satisfy the customer's needs. Making high level products or giving high level services is the mission of the company. So it is true that a business objective is aligned with a customer need to be fulfilled by the business.
Answer: See explanation
Explanation:
The journal entry will be prepared as follows:
May 1:
Dr Account receivable $36000
Cr Sales $36000
(To record sales)
Dr Cost of goods sold $23540
Cr Inventory $23540
(To record cost of goods sold)
August 30:
Dr Cash $10380
Dr Allowance for doubtful accounts $25620
Cr Account receivable $36000
(To record collection and written off)
December 8:
Dr Account receivable $25620
Cr Allowance for doubtful accounts $25620
(To record reinstatement)
Dr Cash $25620
Cr Account receivable $25620
(To record collection)
Answer:
10 units;
50 units.
Explanation:
The revenue function is given by the price function multiplied by the number of units sold (x).
The break even point occurs when Revenue equals costs:
Therefore, the smallest number of units required for the company to break even is 10 units.
Maximum profit will be achieved at that number of units for which the derivate of the profit function is zero:
The number of units that will give maximum profit is 50.
Answer:
Accounting rate of return, also known as the Average rate of return, or ARR is a financial ratio used in capital budgeting. The ratio does not take into account the concept of time value of money. ARR calculates the return, generated from net income of the proposed capital investment. The ARR is a percentage return. Say, if ARR = 7%, then it means that the project is expected to earn seven cents out of each dollar invested (yearly). If the ARR is equal to or greater than the required rate of return, the project is acceptable. If it is less than the desired rate, it should be rejected. When comparing investments, the higher the ARR, the more attractive the investment. More than half of large firms calculate ARR when appraising projects.
Explanation:
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