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Harman [31]
3 years ago
15

Assume a contract for the sale of goods specifies that the seller will receive cash 20 months after delivery of a product. The s

eller is likely to do which of the following with respect to the time value of money over the life of the contract?
A. Recognize interest expense.
B. Recognize additional cost of goods sold.
C. Ignore the time value of money.
D. Recognize interest revenue.
Business
1 answer:
UkoKoshka [18]3 years ago
8 0

Answer:

D. Recognize interest revenue.

Explanation:

A dollar received today is worth more than a dollar received tomorrow. The seller will recognize revenue at the Present Value of the amount that he expects to get in 20 months time. That is recognize interest revenue

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You are trying to choose between two stocks, Widget and Gadget. Widget has a current stock price of $30 and earnings per share o
gizmo_the_mogwai [7]

Answer:

Gadget will have higher earning.

Explanation:

Price Earning Ratio is the ratio of Market price to the earning per share. PE Ratio measure the effect of earning over the market price of the company.

Widget

Stock Price = $30

Earning per share = $2

PE ratio = $30 / $2 = 15 times

Gadget

Stock Price = $30

Earning per share = $2

PE ratio = $20 / $1 = 20 times

Gadget will have higher earning.

7 0
2 years ago
Two economists created fake resumes with either common african-american names such as lakisha and jamal or common white names su
morpeh [17]
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6 0
3 years ago
Identify the two independent clauses in the following compound-complex sentence.
krek1111 [17]

The two independent clauses in the following compound-complex sentence are.

  • The production manager supported the changes.
  • He expected the process to work smoothly.

<u>Explanation:</u>

Compound sentence and complex sentence together makes a compound- complex sentence. A Clause is a sentence which has one subject or one verb.

The independent clause is a sentence which does not need a supportive sentence to explain it's situation and it makes a statement or asks a question.

And dependent clause is a sentence which begins with when, because, if etc. Therefore, the independent caluses will be the above given two sentences as they are statements and do not need a supportive statement.

5 0
3 years ago
Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Per
Flauer [41]

Answer : R11 & U44

Explanation:

Considering the aforementioned data on the small set of products that comprise the specialty repair parts division. After performing ABC analysis on the data. I would suggest R11 and U44 for the firm keep the least control.

3 0
2 years ago
1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipmen
Gnoma [55]

Answer:

1 Depreciation expeense (Debit) $4,200

Accumulated depreciation (Credit) $4,200

2.Bad Debt expense (Dr.) $6,900

Accounts Receivables (Cr.) $6,900

3. Accrued Interest Expense (Dr.) $1,200

Notes Payable (Cr.) $1,200

4. Accrued Income Tax (Dr.) $14,200

Cash (Cr.) $14,200

5. Cash (Dr.) $4,200

Redemption of Gift Cards (Cr.) $4,200

Explanation:

Depreciation expense is considered as a tax shield. The larger the depreciation expense, the lower will be the taxable income. The adjusting entries are required before trial balance is created. There are few transaction that occur after the initial recording of the transactions. These transaction needs to be adjusted before the financial statements preparation.

8 0
3 years ago
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