Answer: False
Explanation:
The real interest rate is the nominal interest rate adjusted for inflation.
If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.
For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:
= 8 - 4 = 4%
If inflation is instead 2%, real rate would be:
= 8 - 2 = 6%
Real rate would be higher than anticipated.
Answer:
B. Customer Equity
Explanation:
In its focus on bottom-line financial value, the customer equity approach offers limited guidance for go-to-market strategies and does not fully account for competitive moves. Customer equity can be defined as the total value of all the customers of any firm. It means any firm will have more customer equity if has large number of customers who make frequent purchases as well. Customer loyalty is directly proportional to the customer equity, more is the customer loyalty, the more will be the customer equity of any brand. Although it is very much important for any business but it does not tell about the go-to market strategies and competitive moves that what business you should be in and what business you could be in.
Answer:
1.Contract is express
2.Contract executory
Please explanation below.
Explanation:
1)Contract is Expressed
Expressed contract consist of agreement in which terms are stated by parties either orally or in written .
2) The contract is executory
Since contract is performed only by Santonio and since Ramona will make payment on 1 june ,on 31 may it is still to be performed by ramona so the contract is executory (only part performance is made) .An executory contract is a contract that has not yet been fully performed or fully executed. It is a contract in which both sides still have important performance remaining.
Answer:
The amount of goodwill that is recorded by Large is $5 million
Explanation:
Goodwill is the excess of price consideration paid to acquire controlling stake in a company over the fair value of the company's net assets.
Net assets in the sense implies the fair value of total assets less fair value of liabilities.
Fair value of total assets is $9 million
Fair value of liabilities is $3 million
As a result net assets upon acquisition is $6 million($9 million less $3 million)
Since the consideration paid in acquiring Small's voting stake is $11 million, goodwill is $5 million($11 million less $6 million).
The $ 5 million is the excess of purchase consideration over the fair value of Small's net assets as at the date of acquisition
Answer:
Cost of Goods Sold Dr.
To Supplies Expense
Explanation:
The journal entry for cost of goods sold should've been:
Cost of goods sold A/C Dr.
To Purchases A/C
(Being cost of goods sold expense recorded)
The wrong entry passed has been:
Supplies expenses A/C Dr.
To Purchases A/C
The rectifying (correcting) journal entry should be:
Cost of Goods Sold A/c Dr.
To Supplies Expenses A/C
(Being rectification entry for cost of goods sold recorded)
Cost of goods sold is an expense and expenses should be debited.
At the same time, purchase being a nominal account, crediting it would reduce the purchases balance.
Supplies expense was wrongly debited so it has been credited to cancel out the effect.
