Answer:
c. the average rate of return method includes the entire amount of income earned over the life of the proposal.
Explanation:
the average rate of return is a capital budgeting method.
Average rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
From the above formula, it can be seen that the entire income earned over the life of the project is used when calculating average rate of return.
the average rate of return method does not consider the timing of the expected cash flows. or use present values unlike the net present value and internal rate of return.
Net income is used instead of expected cash flows when calculating ARR
Answer:
The Journal Entry and their narrations is shown below:-
Explanation:
The Journal entry is shown below:-
a. 1.Accounts Receivable Dr, $3,300
To Sales $3,300
(Being sales is recorded)
Cash Dr, $3,234
Sales Discount Dr, $66
(3,300 × 2%)
To Accounts Receivable $3,300
(Being Payment received is recorded)
2. Accounts Receivable Dr, $3,234
=(3,300 × 0.98)
To Sales $3,234
(Being sales is recorded)
Cash Dr, $3,234
To Accounts Receivable $3,234
(Being payment received is recorded)
b. Cash Dr, $3,300
To Accounts Receivable $3,234
To Sales Discounts Forfeited 66
(Being payment received is recorded)
Answer:
Read the explanation below
Explanation:
Dollar-cost averaging is based on the belief that prices of stock fluctuate around a normal level. Without this notion, it will not be possible to determine what can be seen as high or low now compared to the future.
The benefits of Dollar Cost Averaging attracts investors to employ. These benefits include:
1. It contributes on a regular basis to portfolios of investment.
2. The problem of market timing is eliminated especially for investors do not have time to track the market regularly or who lack the understanding of the market.
3. The cost basis to consumers on stocks whose values decline are is reduced.
4. It is easy to set up and not expensive especially for investors with no huge amount of money to invest. Like the example in the question, it easier for a salary earner to invest $500 monthly than investing $5,000 in a day.
Despite these advantages, dollar-cost averaging has its own disadvantages, and these include:
1. It has been found out in different studies that investor that can time the market correctly and invest a lump sum amount receive a higher return in the long run than what dollar-cost averaging can fetch.
2. The transaction costs paid by the investors significantly increased because of more number of different transactions when brokerage fee is high.
I wish you the best.
Answer:
At face value
Explanation:
Short term notes are always recorded at face value, and that applies to both interest and non-interest bearing short term notes.
Non-interest bearing long term notes must be recorded at their discounted value, i.e. you must discount the long term note' face value by the discount rate used by the company.
The information that would cause a company's stock price to go
down is a company abandons development of a new technology.
<h3>What is a stock?</h3>
A stock is a means used to raise capital by public companies. Stocks give holders the right to become owners of the company. Stockholders receive dividends.
When a company abandons the development of new technology, it is a negative signal that indicates to the public that all is not well. This reduces the confidence of the public in the company. As a result, stock prices begin to fall.
To learn more about stocks, please check: brainly.com/question/9970004
