Answer:
To ensure assets and liabilities are reported at appropriate amounts.
To ensure the related revenues and expenses are reported in the proper period.
Explanation:
Adjusting entries at the end of the period are basically made, to comply with the requirements of the accrual principal.
Under accrual principal the financial statements represent the true and fair view of the transactions and conditions of the company.
It basically records all the revenues and expenses at the time when they are incurred and not at the time when they are paid in cash, or cash is received.
As and when the transaction incurs, or to the period it relates it shall be disclosed.
Therefore, each balance sheet item is disclosed and reported at the appropriate amount. And the all the revenues and expenses related to the period are provided for.
Answer:
The market value of the stock is $132.73.
Explanation:
D0 = Dividend just paid = $4
D1 = Anticipated next year dividend or Year 1 dividend = $6
D2 = Dividend of in the subsequent year or Year 2 = $7
D3 = Year 3 dividend = D2 * (100% + Dividend growth rate forever) = $7 * (100% + 5%) = $7.35
Sum of present values of D1 and D2 = (D1 / (100% + required rate of return)^1) + (D2 / (100% + required rate of return)^2) = ($6 / (100% + 10%)^1) + ($7 / (100% + 10%)^2) = $11.2396694214876
Stock price in year 2 = D3 / (Required rate of return - Dividend growth rate forever) = $7.35 / (10% - 5%) = $147
Present value of Stock price in year 2 = Stock price in year 2 / (100% + required rate of return)^2 = $147 / (100% + 10%)^2 = $121.487603305785
Market value of the stock = Present value of Stock price in year 2 + Sum of present values of D1 and D2 = $121.487603305785 + $11.2396694214876 = $132.73
Therefore, the market value of the stock is $132.73.
Answer:
The correct answer is 2.5%
Explanation:
The rate of inflation is always factored in when calculating the expected market interest for a year.
From the example, the expected real rate of return/interest rate = 2.0 percent
Factoring in an expected 0.5% inflation rate,
= 2.0 + 0.5 = 2.5%
The expected market interest rate for a one-year U.S. Treasury Security = 2.5%
Answer:
We know the average inventory was 7,650 and the cost of goods sold through out the yer were 76,500.There are about 52 weeks in a year. If the company closes for 2 weeks, then they are in business for 50 weeks a year.
If we divide the cost of goods sold by the number of weeks that the company is open, we get what is the cost of goods sold each week.
76,500/50= 1,530
The company has 1,530 of cost of goods sold each week. And their average inventory is of 7650 so if we divide average inventory by the cost of goods sold each week, we will get how many weeks of supply is held in inventory.
7650/1530=5
The company holds 5 weeks of supply in inventory.
Explanation:
Answer:
Policy owner
Explanation:
A Life Settlement Broker must be a practicing, experience and licensed Life agent who represents the owner and performs a fiduciary duty to the owner to act in accordance with the owner's best interest and instructions.
