Answer:
C. Capital Loss
Explanation:
When the selling price of an asset like bonds etc exceeds it purchase price then the capital profit will be the difference between sale and purchase price.
But if the purchase price is greater than the sale price the difference is called Capital loss.
Example: if we buy 100 shares for $20 each and after a year sell them for $ 18 then the difference is called the capital loss.
The finance lease is the journal entry can be created by debiting the lease asset account and crediting the lease liability account. The amount of lease asset or lease liability recorded in this journal entry is the fair value of total lease payments.
Because short-term leases are not capitalized, no depreciation expense on the right of use asset or finance cost on the lease liability is recognized. Payments on short-term leases are expensed by the less on a straight-line or other systematic basis.
Debit the appropriate fixed asset account and credit the capital lease liability and account with the amount.
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Answer:
the maximum that shareholders can lose is their original investment in the firm's stock AND the claims of preferred shareholders are honored before those of the common shareholders.
Explanation:
Bankruptcy may be defined as the legal proceedings that involves a person or a business where the person or the business firm is not able to repay the debts that are outstanding. When a firm or a person files a bankruptcy, there is an automatic stay put by the court that blocks the debts.
In case of bankruptcy the different shareholders of the firm losses a maximum of their original investment that they have done in the firm while purchasing the stocks. And also the claims of the preferred shareholders are being honored first than those of common shareholders.
Answer:
b. In an ordinary annuity payments occur at the end of the period
Explanation:
<u>Why the other options are false:</u>
A.- On annuity due, the payment occurs at the beginning of the period.
B.- The perpetuity will not mature. It will yield interest for an indefinite period of time
C.- The present present value of a perpetuity is calculate as follow:
cash inflow/ interest rate = perpetuity
On an ordinary annuity, the payment occur at the end of the period, which is correct.
Suppose the price of barley increases by 16.53%. If breweries buy 3.28% less barley after the price increase, the total revenue for barley producers will increase because the price effect is greater than the quantity effect.
Explanation:
Every company must sooner or later come to the point that an rise in the price is right.
Inflation has two primary causes: demand tug and expense drive.
Both have a general raise in costs in an economy. However, they work otherwise. Conditions of market pull arise as customer demand raises costs.
Consumers are now increasing the demand on the good for some quantity, and suppliers would need to offer a better price in order to deliver the good.