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Burka [1]
3 years ago
6

An asset is acquired using a noninterest-bearing note payable for $100,000 due in two years. Management records the purchase wit

h a debit to the asset for $100,000 and a credit to notes payable for $100,000. Which of the following statements is correct?A. Management has properly recorded the transaction.B. Management has not considered the present value of the note in recording the asset.C. Management should not record the asset until the note has been paid.D. Management should record the note for more than $100,000 to account for the underlying interest.
Business
1 answer:
TiliK225 [7]3 years ago
6 0

Answer:

The answer is A. Management has properly recorded the transaction.

Explanation:

According to the given data Since the note is non interest bearing, no interest will be paid on the bond.

Therefore, asset will be debited and note payable will be credited by the full amount.

Therefore, the Management has properly recorded the transaction.

The joural entry would be as follows:

                        Debit            Credit

asset              $100,000

note payable                    $100,000

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Froot Loop Inc., a cereal manufacturer, has variable costs of $0.40 per unit of product. In May, the volume of production was 25
mr Goodwill [35]

Answer:

the fixed cost per month is $20,600

Explanation:

The computation of the fixed cost is given below:

Fixed costs = Total Production Costs - Variable costs

= $30600 - $0.40 per unit × 25000 units

= $30600 - $10,000

= $20,600

hence, the fixed cost per month is $20,600

We simply deduct the variable cost from the total production cost so that the fixed cost could come

8 0
3 years ago
A nurse manager has had issues with a marginal employee. staff members have complained several times to the manager regarding th
OleMash [197]
<span>The nurse manager should have a talk with the employee in question to make sure that the employee understand protocols and procedures and if the employee doesn't then the manager needs to consider having the employee to complete another cycle of training.</span>
5 0
3 years ago
John’s home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate
Mumz [18]

Answer:

Market value

Explanation:

The market value of a product is the price at which a buyer is willing to purchase a good irrespective of prevalent price of a commodity. It is that amount a buyer and seller are willing to strike a deal for given normal market conditions.

In this scenario John originally bought his five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000.

Despite the house now being $350,000, $365,000 is the market price at which the buyer and seller are willing to settle.

8 0
3 years ago
Goods with many close substitutes tend to have a. more elastic demands. b. less elastic demands. c. price elasticities of demand
kotykmax [81]

Answer:

The correct answer is a. more elastic demands.

Explanation:

There are some goods whose demand is very price sensitive, small variations in their price cause large variations in the quantity demanded. It is said of them that they have elastic demand. The goods that, on the contrary, are not sensitive to price are those of inelastic or rigid demand. In these large variations in prices can occur without consumers varying the quantities they demand. The intermediate case is called unit elasticity.

The elasticity of demand is measured by calculating the percentage by which the quantity demanded of a good varies when its price varies by one percent. If the result of the operation is greater than one, the demand for that good is elastic; If the result is between zero and one, its demand is inelastic.

The factors that influence the demand for a good to be more or less elastic are:

1) Type of needs that satisfies the good. If the good is of first necessity the demand is inelastic, it is acquired whatever the price; On the other hand, if the good is luxurious, the demand will be elastic since if the price increases a little, many consumers will be able to do without it.

2) Existence of substitute goods. If there are good substitutes, the demand for good will be very elastic. For example, a small increase in the price of olive oil can cause a large number of housewives to decide to use sunflower.

4 0
3 years ago
Which one is odd: sales ,purchase, carriage inward, audit fees.​
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Answer:

carriage inward is answer I think

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3 years ago
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