Answer:
1. False
2. A. financing decision
Explanation:
The capital budgeting refers to the investment in long term assets like machinery, new process, plants, machine replacement that can increase productivity and create a better return in the near future. There are various processes to determine it. It can be by net present value, internal rate of return, etc
The financial decision belongs to a certain decision that illustrates the allocation of financing and funding. It also helps in paying the investment and keeping expenses that can increase the wealth of the shareholder.
It is made up of decisions related to capital budgeting, working capital management. The working capital displays the current assets and current liabilities According to the case, as the small investment project is paid through a $1 million that results in an increase in a short term bank loan
Answer:
a. Overhead cost per blender = $28.27
Explanation:
Overhead rate = $149,315 / 3,945
Overhead rate = $37.85
Overhead cost per blender = (Blender Direct labor hours * Overhead rate) / Units of blunder Produced and sold
Overhead cost per blender = (1,195 * $37.85) / 1,600
Overhead cost per blender = $45,230.75 / 1,600
Overhead cost per blender = $28.27
Answer:
Stockholders Equity
Preferred Stock 375,000
Common Stock 562,500
Additional Paid-in Capital 81,900
Retained Earnings <u> 306,000 </u>
Total Equity 1,325,400
Explanation:
We look into the list only for the equity accounts:
Which are the preferred stock, the common stock
and the additional paid-in caital.
We will also include the retained earnings account
All this accounts increase the equity, so we ujust need to add them together.
Answer:
D. A conglomerate
Explanation:
A Conglomerate is a big corporation that is composed of a various combinations of business entities seemingly unrelated but under one corporate group. It is a big organization that has numerous products and services which vary extensively from one another. It is a big parent company comprising of many subsidiaries producing different products and offering different services. In this case, Red Empire is a conglomerate, the parent company having subsidiaries in petroleum, capital markets, chemicals, steel, beverages, hospitality, airlines, education, automobiles, and consumer electronics industries all with their various brand names.
Answer:
D) Tenants in common
Explanation:
To be tenants in common you must be part of a tenancy in common agreement. A tenancy in common agreement is a situation in which 2 or more people hold interest in a property and each owner has the right to leave their share of the property to a beneficiary upon their death.
This doesn’t mean you own separate parts, but that you have separate interest in the whole property.
Tenants in common can have different ownership interests, e.g. Smith may own 60% of a property and Michael may own 40%.
