Answer:
Balance sheet extract:
Intangible assets:
Copyright 1 $0
Copyright 2 $48,000
Explanation:
The points to note in the question are enumerated as follows:
An internally generated intangible asset cannot be capitalized.By capitalization ,I mean its costs is treated as intangible asset to be amortized over its useful life.As a result,the $16,000 incurred on the internally generated intangible asset,specifically,the first copyright should be treated as expense when incurred.
However,the second copyright that was bought from University Press can be treated as asset but cannot be amortized since it has indefinite life,but would be tested for impairment on a yearly basis,with impairment losses charged to profit or loss account.
Answer:
11.07%
Explanation:
The formula to compute WACC is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)
= (0.25 × 8%) × ( 1 - 34%) + (0.75 × 13%)
= 1.32% + 9.75%
= 11.07%
We simply multiply the weighatge with its capital structure so that the correct weightage cost of capital can come.
Answer:
a) Increase asset (Cash): Increase equity (Service Revenue) - GUIDE
b) Decrease equity (Salaries): Decrease asset (Cash)
c) Increase asset (Cash): Increase equity (Capital)
d) Increase asset (Receivable Accounts): Increase equity (Service Revenue)
e) Decrease equity (Utility): Increased liabilities (Others payable accounts)
f) Decrease equity (Capital): Decrease assets (Cash)
Explanation:
Accounting Equation Formula
:
Assets = Liabilities + Equity
According to the formula transactions must be recorded as follows:
<em>DEBIT:</em> Asset increases, Liabilities decreases, and Equity decrease.
<em>CREDIT:</em> Asset decreases, Liabilities increases, and Equity increase.
Answer:
The correct answer is option D.
Explanation:
Production possibility frontier shows the different amounts of two goods that can be produced using fixed resources.
An outward shift in the production possibility frontier imply that production of output is increasing.
Production may increase because of increase in inputs.
Here, the shift in production is happening because of increase in labor force.
Answer: Option B
Explanation: In simple words, global structure refers to the structure in which the operations of an entity are managed on the basis of geographic areas rather on the basis of product.
The companies having global structures operate their business on many different countries and the scale of their operations are usually huge. Therefore, they profit from the economies of scale and enjoy lower production cost than others.
Hence the correct option is B.
