Answer:
A) The GAAP statement is based on cost function rather than cost behavior.
Explanation:
Income statements that follow GAAP rules categorizes expenses based on their business function: product, selling or administrative.
While cost behavior categorizes costs based on how they influence a company's activities: variable, fixed and mixed. When a manager wants to measure the impact of any decision he/she makes, they need to use this type of categorization. For example, if fixed costs increase, what is the new break even point? If variable costs decrease, how is the marginal cost affected?
Answer:
The correct answer is the option D: strongly correlated with the degree to which the industry's driving forces make it harder or easier for the new entrants to be successful.
Explanation:
To begin with, the entry of new competitors to the industry is regulated upon many factors that tend to make the procedure more or less difficult. Moreover, the entrance of the new companies will generate a change in the industry depend if the barriers are high or low and therefore that in certain industries the driving forces will complicate as much as they can the entrance due to the fact that there are few competitors already in the industry or because there are possession of special supplies and that is strongly correlated to the strength or wearkness of the potential entry of rivals at the industry.
Answer:
MARIGOLD CORP
INTEREST TO BE CAPITALIZED IN THE YEAR 2020
January 2, 2020 $606,000 *10% = $60,600
September 1, 2020 $1,802,400*10%* 4/12 = <u> $60,080</u>
<u> 120,680</u>
Explanation:
Interest to be capitalized for the year 2020 must be interest that is incurred on amount expended on the construction from amount specifically borrowed for the construction
Answer:
The expected return of the portfolio is 12.8%
Explanation:
A portfolio is invested 22% on stock G, 50% on stock J and 28% on stock K.
The expected return on stock G is 7%, on stock J is 13% and on stock K is 17%.
Weighted return on stock G
= 0.22*7%
=1.54%
Weighted return on stock J
=0.50*13%
=6.5%
Weighted return on stock K
=0.28*17%
=4.76%
The expected return on the portfolio
=Weighted return on stock G+Weighted return on stock J+Weighted return on stock K
=(1.54+6.5+4.76)%
=12.8%
Answer:
Part (1) November 1
The amount paid is the rental advances and must be recorded as advances which falls under the current asset category:
Dr Rental Advances $90,000
Cr Bank account $90,000
Part (2) December 31
On this date, some of the rental advances paid would be realized as expenses from the period November 1, 20X1 to December 31, 20X2.
This time duration constitutes to 2 months and the rental advance made on November were for five months. Out of these 5 months, 2 months share must be recognized as expense which is
The relevant entry would be:
Dr Rental Expenses $36,000
Cr Rental Advances $36,000
