Answer:
The answer is the ability to earn above average returns indefinitely
Explanation:
To earn above the average returns are form of returns in excess of what an investor expects to earn from other investments with similar amount of risk. This gives an ability to manufactures to produce at the lowest cost, which is an advantage to organizations.
Answer:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company.
b.Equity Multiplier or P/E ratio=Market value per share/Earning per share.
Explanation:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company. The Debt Equity ratio can be calculated using the Market value of debt or equity. It can also be calculated using the book values of debt or equity which are included in the balance sheet of the company.
b. Equity multiplier is also known as price /earning ratio. A price/earnings ratio or P/E ratio is the ratio of the market value of a share to the annual earnings per share. For every company whose shares are traded on a stock market, there is a P/E ratio. For private companies (companies whose
shares are not traded on a stock market) a suitable P/E ratio can be selected and used to derive a valuation for the shares.
Equity Multiplier or P/E ratio=Market value per share/Earning per share.
<span>World trade refers to the total value of all the exports and imports of the world's nations.</span>
Answer:
Deferred Tax Liability = $11,400 Credit
Explanation:
given data
pretax financial income = $228,000
Indigo’s tax depreciation = $38,000
tax rate = 30 %
solution
we know here that Income Tax Expense is
Income Tax Expense = $228,000 × 30%
Income Tax Expense = $68400 Dr
so as that
Deferred Tax Liability will be here
Deferred Tax Liability = $38000 × 30%
Deferred Tax Liability = $38000 × 0.30
Deferred Tax Liability = $11,400 Credit
Answer:
See below.
Explanation:
Journal entries to record the transaction are as follows,
Debit Computer account with $3,432
Debit Accumulated depreciation account with $18,720
Credit Truck account with $20,800
Credit Cash Account with $520
Credit profit on sale of asset with $832
This the journal entry that balances the books by targeting appropriate accounts.
Note that accumulated depreciation account has a credit balance as it is an asset reducing account.
Hope that helps.
