Answer:
C. Her employer has a centralized structure.
Explanation:
Centralized structure means basically everything has to go through Monica's approval, even day-to-day operations.
Answer:
The amount to record as the cost of this long-term investment in bonds is $771,500
Explanation:
The computation of long term investment in bonds is shown below:
= (Face value × cost of bond) + brokerage cost
= ($750,000 ×1.01) + $14,000
= $757,500 + $14,000
= $771,500
The accrued interest should not be included in the computation of long term investment because it is not a received cost, it is earned but actually it is not received. Hence, this accrued interest would not be considered in the computation part.
Thus, The amount to record as the cost of this long-term investment in bonds is $771,500
Answer:
O C. Buying and selling treasury securities
Explanation:
Through the Federal Reserve, the government employs monetary policy to influence the direction and speed of economic growth. Open market operations are part of the monetary policies. It entails the government buying or selling securities from commercial banks.
Monetary policies regulate the amount of money supply in the economy. When the government wants to increase the amount of money in the economy, it buys government securities from banks. The Fed deposits large sums of money to banks in exchange for the securities. The Banks lends the money to firms and households, therefore increasing money in the economy. The selling of securities by the Fed decreases the amount of money in the country.
Answer:
$ 32,370
Explanation:
First and foremost,find attached amortization schedule showing the opening balance of the bonds in each year,the interest expense which is the opening balance multiplied by market interest rate of 8.5% as well as the interest coupon which is face value of $360,000 multiplied by stated interest of 10.50% i.e $360,000*10.5%=$37,800
The interest expense in year 3 = opening balance in year 3*8.5%=$380,823*8.5% =$32,370
Answer:
The correct answer is letter "A": Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.
Explanation:
Accelerated depreciation is a form of accounting and taxation used in the first years of an asset to allow greater deductions. On the other hand, the deductions are distributed evenly throughout the life of the asset using the Straight-line Depreciation method. Accelerated depreciation facilitates higher expenses to be incurred during the first years of an asset while in use, and lower expenses years later, as long as the asset depreciates.
In that sense, when it comes to the total projected cash flow of a company on a project, neither the accelerated depreciation or the straight-line method would affect it but both of them have impact on the timing of the cash flows since accelerated depreciation demands higher expenses since the beginning of the possession of the assets while the straight-line method keeps the expenses steady. Both, also affect the net present value (NPV) of the company since with the accelerated depreciation the cash flow will be less and with the straight-line method it should be constant.