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3 years ago

Cash-basis vs. accrual-basis accounting?

1 answer:

4 0

The cash method accounts for revenue only when the money is received and for expenses only when the money is paid out. On the other hand, the accrual method accounts for revenue when it is earned and expenses goods and services when they are incurred. ... Accrual accounting is the most common method used by businesses.

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On November 1, 2018, Arch Services issued $ 305 comma 000 of eightminusyear bonds with a stated rate of 11% at par. Interest p

Jobisdone [24]

Answer:

$5,603

Explanation:

The calculation of Interest Expense is shown below:-

Interest made accrued on Dec 31, 2018 = Services issued × Stated rate × Remaining months ÷ Number of Months in a year

= $305,000 × 11% × 2 ÷ 12

= $305,000 × 11% × 0.167

= $5,603

Therefore for computing the Interest Expense we simply applied the above formula.

7 0

3 years ago

A. by how much will gdp change if firms increase their investment by $11 billion and the mpc is 0.9?

Sliva [168]

Answer:

The answer is "$110 billion".

Explanation:

Firms increase their investment by $11 billion

mpc = 0.9

gdp = ?

To find the gdp, first we have to find expenditure multiplier;

we will find that by using the formula;

expenditure multiplier = 1/(1-0.9) = 1/0.1 = 10

Now gdp = 10 x $11 billion

= $110 billion

Thus the gdp is $110 billion.

6 0

3 years ago

beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-bond rate is 5.25%. The

gregori [183]

Answer:

RA=11.6%

Explanation:

RA=Rf+(Rm-Rf)Ba

RA=?

Rf=5.25%

Rm=12.5%

Ba=.88

RA=5.25%+(12.5%-5.25%).88

6 0

3 years ago

Alpha Wood Interiors announced that it is going out of business. As of today, no more regular dividends will be paid. The firm w

xz_007 [3.2K]

Answer:

$44.52

Explanation:

The value of the stock today can be determined by finding the present value of the liquidating dividends

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 17

Cash flow in year 1 = 32

I = 6%

PV = $44.52

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

4 0

2 years ago

The size of the multiplier which is applied to a change in AD is dependent upon the ________..

torisob [31]

Answer:

Explanation:

The multiplier is calculated by two marginal decisions by firms and individuals. A firm can decide whether to save the revenue or to consume it, therefore there is marginal propensity to consume and marginal propensity to save as options for both firms and individuals. Therefore, the size of the multiplier which is applied to a change in AD is dependent upon size of the marginal propensity to consume and marginal propensity to save.

8 0

3 years ago