Answer:
(a) Total amount paid -$3000 will be recognized immediately as an expense.
(b) Only two month advertising expenses will be recognized as expense i.e $600 while the balance will be recorded as prepayment under current asset.
Explanation:
Monthly advertising expenses = 3,000/10
= $300
(a) Under Cash basis, the total amount paid in advance (i.e $3000) will be recognized as being expenses immediately.
(b) Under accrual basis, only two month advertising expenses already consumed will be recognized as an expense immediately while the remaining 8 months balance yet to be utilized ( $2400) will be accounted for as prepayment under current asset in the statement of financial position (i.e it will be deferred)
Answer:
Answer for the question :
""The Athletic Department of Leland University is considering whether to hold an extensive campaign next year to raise funds for a new athletic field. The response to the campaigın depends heavily upon the success of the football team this fall. In the past, the football team has had winning seasons 60 percent of the time. If the football team has a winning season (W) this fall, then many of the alumnae and alumni will contribute and the cam- paign will raise $3 milion. If the team has a losing season (L), few will contribute and the campaign will lose $2 million. If no campaign is undertaken, no costs are incurred. On September 1, just before the football season begins, the Athletic Department needs to make its decision about whether to hold the campaign next year.
(a) Develop a decision analysis formulation of this problem by identifying the alternative actions, the states of nature, and the payoff table.
(b) According to Bayes’ decision rule, should the campaign be undertaken?
(c) What is EVPI? "
is explained in the attachment.
Explanation:
Answer: cost
Explanation: In a market economy, the price of the product or service offered are determined by the market forces of demand and supply. Govt. intervention in regulating the market forces is minimal in such markets.
Thus, if the entrepreneurs produce goods at a low cost they will price it low leading to high demand for their product. Thus, they will be compensated well if they cost their product lower than others.
Answer:
D) Liquidity
Explanation:
A closely held corporation has a limited number of stockholders, that is why their shares are not frequently traded. An advantage of purchasing shares from a publicly traded corporation is that they are traded on a daily basis, and if the investor needs to sell his/her shares, it can be done fairly quickly (they are a fairly liquid investment). On the other hand, since the shares of a closely held corporation are not frequently traded, even though they might be listed on a stock exchange, it may take much longer to sell them which makes them an illiquid investment.
Answer:
The Portfolio beta is 1.1045
Explanation:
The computation of the portfolio beta is given below:
<u>Stock Beta Investment (Weight) Weighted Beta
</u>
Stock Q 0.8 0.3 0.2400
Stock R 1.18 0.25 0.2950
Stock S 1.19 0.25 0.2975
Stock T 1.36 0.2 0.2720
Portfolio beta 1.1045
