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3 years ago

Why do you think people have taken the risk and invested in overseas companies? What are the pros and cons of doing this?

1 answer:

4 0

Why do you think people have taken the risk and invested in overseas companies? What are the pros and cons of doing this? Investing in overseas companies is good because it gives better openings because of the vast amount of countries in the world. It also gives one influence socially in other countries.

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Which of the following errors would cause the adjusted trial balance to be unequal? a.The adjustment for accrued fees of $16,340

STALIN [3.7K]

Answer:

The answer is: B)The adjustment for prepaid insurance was omitted.

Explanation:

The adjusted trial balance is the last step before producing the financial statements of a company. Its format is identical to unadjusted balances, it has three columns: account names, debits and credits. The debit and credit columns are calculated at the bottom and should always be equal. If they aren’t equal, the trial balance was prepared incorrectly.

The only error that would cause the adjusted trial balance to be unequal (debts ≠ credits) is; The adjustment for prepaid insurance was omitted. Prepaid insurance should be debited and cash (or accounts payable) should be credited.

6 0

3 years ago

On August 31, Planar Corp. exchanged 100,000 shares of its $40 par value common stock for all of the net assets of Sistrock Co.

vlada-n [284]

Answer:

$7,200,000

Explanation:

Calculation to determine At what amount should Planar record the acquisition of Sistrock's net assets

Using this formula

Acquisition of Sistrock's net assets =(Shares of common stock issued ×Common stock fair value per share

Let plug in the formula

Acquisition of Sistrock's net assets=100,000*$72

Acquisition of Sistrock's net assets=$7,200,000

Therefore the amount that Planar should record the acquisition of Sistrock's net assets is $7,200,000

3 0

3 years ago

A machine can be purchased for $150,000 and used for five years, yielding the following net incomes. In projecting net incomes,

umka2103 [35]

Answer:

2.69 years

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

To derive cash flows from net income, add depreciation to the net income.

Straight line depreciation = (Cost of asset - Salvage value) / useful life

$150,000 / 5 = $30,000

The depreciation expense each year would be $30,000.

Cash flow in year 1 = $30,000 + $10,000 = $40,000

Cash flow in year 2 = $30,000 + $25,000 = $55,000

Cash flow in year 3 = $30,000 + $50,000 = $80,000

Cash flow in year 4 = $30,000 + $37,500 = $67,500

Cash flow in year 5 = $30,000 + $100,000 = $130,000

In the first year, -150,000 + $40,000 = $-110,000 is recovered

In the second year, $-110,000 + $55,000 = $-55,000 is recovered

In the third year, $-55,000 + $80,000 = $25,000 is recovered.

The cash payback period is 2 years + $-55,000 / $80,000 = 2.69 years

I hope my answer helps you

6 0

3 years ago

Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $

Mariana [72]

Answer:

a. 1,500

Explanation:

The formula to compute the break even point for earning target profit is shown below:

= (Fixed cost + target profit) ÷ (Contribution margin per unit)

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

So, the break even point would be

= ($100,000 + $20,000) ÷ ($100 - $20)

= $120,000 ÷ $80

= 1,500 rooms

5 0

4 years ago

How might a once-valued intermediary find itself threatened with disintermediation?

kicyunya [14]

Answer:

Through disinter-mediation the middle man or the banks, agents etc, are removed from the process of funding, and the organization decides to pay the customers directly. Thus the profits of the once valued intermediaries are killed, and hence they are threatened.

Explanation:

Disinter-mediation is riskier however, and the chances of it taking place is less. Hence, the intermediary are not that threatened. However, if companies decides to go with it, they become the once valued intermediaries, and the companies now don't require to pay them their fee. Thus. the intermediaries are at big loss, and that is why they feel quite threatened from the disinter-mediation.

6 0

4 years ago