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3 years ago

Describe the difference between debt capital and equity capital.

Business

1 answer:

shusha [124]3 years ago

6 0

Answer:

Explanation:

Companies borrow debt capital in the form of short- and long-term loans and repay them with interest. Equity capital, which does not require repayment, is raised by issuing common and preferred stock, and through retained earnings. Most business owners prefer debt capital because it doesn't dilute ownership

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Example of opportunity cost atlist 3 example

gregori [183]

Answer:

Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it.

At the ice cream parlor, you have to choose between rocky road and strawberry. When you choose the rocky road, the opportunity cost is the enjoyment of the strawberry.

A player attends baseball training to be a better player instead of taking a vacation. The opportunity cost was the vacation.

I hope i helped! xoxo

5 0

3 years ago

Joel is writing an email to a paper company to check the status of an order. Which sentence shows that Joel is following the pro

Stels [109]

Would you mind giving us the status(of the delivery,that is)of glossy paper,which we ordered

8 0

3 years ago

An accumulated deficit means a company has ______. Multiple choice question. a contra-asset account due to losses accumulated mo

wariber [46]

Based on accounting principles, an accumulated deficit means a company has "accumulated more net losses than net income."

This is because the accumulated deficit is generally considered to be a "negative retained earnings balance."

In other words, accumulated deficit is the total summation of the losses and dividends paid by a company that supersedes the profits gained by the company.

Hence, in this case, it is concluded that the correct answer is option B. "accumulated more net losses than net income."

Learn more here: brainly.com/question/16551961

8 0

3 years ago

Onslow Co. purchased a used machine for $144,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the

statuscvo [17]

Answer:

Dr Fixed asset $156,000

Cr Cash $156,000

Being entries to record the cost of the machine

Explanation:

The cost to wire electricity and secure the machine in place are part of the cost to make the machine available for use as such, these will be capitalized with the cost of purchase of the asset.

Capitalized cost of asset

= $144,000 + $10,000 + $2,000

= $156,000

8 0

3 years ago

Kunkel Company makes two products and uses a conventional costing system. A single plantwide predetermined overhead rate is comp

Ilia_Sergeevich [38]

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Total number of direct labor hours= (1,000*2) + (2,000*7)= 16,000

Predetermined manufacturing overhead rate= 1,200,000 / 16,000

Predetermined manufacturing overhead rate= $75 per direct labor hour

Now, we allocate overhead to each unit and calculate the unitary cost:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Mercon:

Allocated MOH= 75*2= $150

Unitary cost= 150 + 8 + 10= $168

Wurcon:

Allocated MOH= 75*7= $525

Unitary cost= 525 + 6 + 11= $542

Finally, using activity-based costing:

Mercon Wurcon Total

Engineering design time (in hours) 1,000 1,000 2,000

Direct labor-hours 2,000 14,000 16,000

Engineering= 600,000 / 2,000= $300 per design hour

Direct labor= 600,000 / 16,000= $37.5 per direct labor hour

Mercon:

Allocated MOH= 37.5*2 + 300*1= $375

Unitary cost= 375 + 8 + 10= $393

Wurcon:

Allocated MOH= 37.5*7 + 300*0.5= $412.5

Unitary cost= 412.5 + 6 + 11= $429.5

3 0

3 years ago