The answer is true, Accounts payable is a single general ledger account that summarizes the total amount owed to all vendors. Accounts payable are amounts which are owed by you to your suppliers for the purchase of trade goods or services, they are sometimes referred to as trade payables or trade creditors. Under normal circumstances, they are normally unsecured, and non-interest bearing.
Answer:
the expected market risk premium is 4.6%
Explanation:
The computation of the expected market risk premium is shown below:
As we know that
Expected rate of return = Risk free rate of return + beta × market risk premium
10.75% = 5% + 1.25 × market risk premium
5.75% = 1.25 × market risk premium
So, the market risk premium is
= 5.75% ÷ 1.25
= 4.6%
hence, the expected market risk premium is 4.6%
we simply applied the above formula
Answer:
Net income= 139,300
ROA= 27.86%
Explanation:
The assets to support the expansion is $500,000
It is estimated the entire database can generate $1,990,000
The profit is 7%
The net income can be calculated as follows
= 1,990,000×7/100
= 1,990,000×0.07
= $139,300
The ROA can be calculated as follows
= 139,300÷500,000
= 27.86%
Answer:
False
Explanation:
Retained earnings are not always kept in cash, there is no practical reason for it. Usually the corporation will use retained earning to finance future investment projects (so they don't need to borrow money) that will allow them to grow or expand, so most retained earnings are investing in something else and not held as cash.
