Answer:
Because this is an inter-entity balance then the amount that should be eliminated of this debt is the letter D. all the $400,000.
Explanation:
Inter entity balance facilitates the management of allocations and transfers between entities. They provide a better control over transactions spanning multiple entities, other benefit is that the accuracy of the financial data improves and finally and this is why the anser is option D. is that it keeps each entity in balance
<h3>
<u>Answer -</u></h3>
If one has been running a successful art and framing shop for three years and has decided to allow others to use his/her business name materials and methods in operating their own business for a fee. It may be called as a franchise agreement.
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<u>Explanation -</u></h3>
A franchise agreement allows the business owner to use the licensor's brand and method of doing business. The franchisor is the original or existing business owner who allows the other one to use his/her business name materials and methods in operating their own business.
A certain amount of fees is to be paid by the franchisee that may be called in the layman’s language as the licensee, who is supposed to pay the fee to the licensor (franchisor) are exchanged for the rights to use the franchisor's name is for a specific number of years.
Answer:
A. True
Explanation:
Examples of situations that individually or in combination would normally lead to a lease being classified as a finance lease are:
(a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term;
(b) the lessee has the option to purchase the underlying asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception date, that the option will be exercised;
(c) the lease term is for the major part of the economic life of the underlying asset even if title is not transferred;
(d) at the inception date, the present value of the lease payments amounts to at least substantially all of the fair value of the underlying asset; and
(e) the underlying asset is of such a specialised nature that only the lessee can use it without major modifications.
Since at the time of lease the net present value of the payments is 88% of the actual market price and the useful life of the asset was 70% at the end of the lease term and also the title of asset shall not be transferred to lessee at the end of lease term, therefore the lease shall not be classify as finance lease and it shall be classified as operating lease so the answer is A. True
Answer:
$1080
Explanation:
Calculation to determine the expected cash flows
Since the bonds have a principal amount of the amount of $1000 first step is to calculate the Cash flow CO1
CO1=$1000(.08)/2
CO1=$80/2
CO1= $40
Second step is to calculate the Frequency of PMT
Frequency of PMT= 10 years x 2 (semi-anually)
Frequency of PMT= 20
Now let determine the Cash Flow CO10
Cash Flow CO10=1000+80
Cash Flow CO10=$1080
Therefore the expected cash flows is $1080
Answer:
a) Demonstrating bad timing.
Explanation:
If the firm releases a new technology with the hope of getting a lot of sales, only to have a competitor implement a similar, but more advanced or complete technology shortly after, it is because the firm is not aware enough of the timing of technological advancements.
A firm without bad timing should not have been surpassed in the technology department by a competitor so fast.
This kind of problem has hapenned in real life. for example, when Blackberry launched the 8000 - 9000 series of phones in 2006, only to have Apple launch the much more innovative and groundbreaking Iphone in 2007.
