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enyata [817]
3 years ago
11

Q 2.16: according to the historical cost principle, if an asset costs $50,000 when it was purchased, it would be recorded at its

________ over the time the asset is held.
Business
1 answer:
liq [111]3 years ago
4 0
According to the historical cost principle, if an asset costs $50,000 when it was purchased, and the one who purchased it still owns the asset today, it will have a higher value than $50,000. If the interest rate is assumed to be 5% for 5 years, the asset will be recorded as $63,814.08.
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In a market economy, those who are willing and able to buy what is produced
Naily [24]
<span>In a market economy, those who are willing and able to buy what is produced, receive the most of what is produced and what the government allows them to receive.
They have the money, so they can receive everything that is in their power to receive.
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3 0
3 years ago
Norton Corporation received cash from issuing 10-year $200,000 bonds at face value. Interest of $10,000 is paid annually to the
Jobisdone [24]

Answer:

Issuance of bonds is a cash inflow

Payment of interest is a cash outflow

Explanation:

The issue of the bond at $200,000 face value would be a cash inflow under the financing activities of the cash flow when issued since more cash was received from the bondholders.

However,the payment of bond interest of $10,000 yearly is a cash outflow under the financing activities section of the statement of cash flows,since Norton Corporation would be parting with the amount on yearly basis till the bonds are retired.

5 0
3 years ago
Suppose a stock had an initial price of $117 per share, paid a dividend of $3.10 per share during the year, and had an ending sh
bonufazy [111]

Answer:

The correct answer for option (a) is 28.29% and for option (B) is 2.65%.

Explanation:

According to the scenario, the given data are as follows:

Initial price = $117

Ending price = $147

Dividend = $3.10

(a) We can calculate the Total return percentage by using following formula:

Total return percentage = ( Ending Price - Initial Price + Dividend) ÷ Initial Price

By putting the value, we get

Total return percentage = ( $147 - $117 + $3.10) ÷ ( $117)

= 28.29% (approx).

(b). we can calculate the dividend yield by using following formula:

Dividend Yield = Dividend ÷ Initial Price

By putting the value, we get

Dividend Yield = $3.10 ÷ $117

= 2.65%

8 0
3 years ago
Stephanie’s company uses a job order cost system. Stephanie just made a $15,000 debit to the Work in Process Inventory account f
serious [3.7K]

Answer:

B. Posting a $15,000 increase in Direct Materials to the job cost sheet for job 1074

Explanation:

According to the given situation, Materials account of the specific work will be debited as costs are allocated to Jobs. Assigning those costs to operate would reduce the balance of inventories.

Therefore from the above explanation the correct answer is b as it has been posted $15,000 which is rising the direct material to the job cost sheet for job 1074.

6 0
3 years ago
Roads that function as expressways and divided highways have high speeds and greater risk of _________ crashes.
dimaraw [331]

Answer: High-impact crashes

Explanation:

High impact crashes are automobile crashes, that occurs at very high speeds and has a high likelihood to cause injuries and in some cases death to passengers of vehicles or pedestrians around.

Expressways and divided highways are roadways where vehicle drivers are allowed to drive at high speeds, therefore increasing the chances of high impact crashes occuring.

6 0
3 years ago
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