Answer: C
Explanation: The present value of a stock is the sum of all future cash flows discounted using a rate.
The future cash flows, in this case, is the proceeds from selling the stock ($100) and the dividend ($10).
We can calculate the current price of the stock using the formula:
($100 + $10) / (1 + 6%) = 103.77
Answer:
The correct answer is letter "B": Entity.
Explanation:
The Accounting Entity principle or Economic Entity principle states that a commonly co-owned group of businesses can entitle to be a single entity with the purpose to generate a consolidated financial statement. A business entity could be considered to be a sole proprietorship, partnership, or corporation.
Answer:
Cash disbursements for insurance would be $ 168,700.
Explanation:
In accrual based accounting expenses are recorded when they are incurred. The payment against item purchased does not make it qualified to be recorded as expense. Any advance payment made is recognize as asset untill performance obligation has been completed. So in order to determine amount of payment we will use following accounting equation.
Payments = Prepaid current period + expenses - opening prepaid balance
Payments = 197,000 + 62,000 - 90,300 = $ 168,700
Answer:
Ending inventory cost= $5,556.92
Explanation:
Giving the following information:
Mar. 1 Beginning inventory 900 $ 7.26
Mar. 10 Purchase 520 7.76
Mar. 16 Purchase 452 8.36
Mar. 23 Purchase 510 9.06
Units sold= 1,760
<u>Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the costs of the last units incorporated into inventory:</u>
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Units in ending invnetory= 2,382 - 1760= 622
Ending inventory cost= 510*9.06 + 112*8.36
Ending inventory cost= $5,556.92
