Answer:
$5,000
Explanation:
Under the accrual accounting method, revenue is recognized and recorded in the books once the recognition criteria is met i.e once the goods or service has been delivered.
Under this system as well expenses are recorded once incurred.
As such, the time of cash payment does not affect the recognition of revenue. When revenue is earned and cash is yet to be paid, the entries required are debit accounts receivable and credit revenue.
On payment of cash, the entries are posted between cash and accounts receivables.
a small piece of ownership in a company - stock
a company’s initial offering of stock - IPO
a portfolio of stocks and bonds - mutual funds
a public stock exchange - NASDAQ
Answer:
A. 3.8 YEARS
B YES
C $325.91
Explanation:
Payback period is the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.
payback period = amount invested / cash flows
$1,900 / $500 = 3.8 years
the project should be accepted because the payback period is less than the maximum acceptable year
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
cash flow in year 0 = $-1900
cash flow each year from year 1 to 5 = $500
I = 4%
NPV = $325.91
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
The correct answer is: in all decision making.
Explanation:
Economic analysis is used in all walks of life, in decision making. It is not only relevant for policymaking or in business or for students. Rather, it is used in day to day life as well.
Almost all the decision we make is based on cost-benefit analysis. It used by households and individuals for utility maximization. It is used by businesses for profit maximization and is used by policy makers for welfare maximization.
