Answer:
d. 12.72%
Explanation:
To calculate the expected return on the market, we will use the Capital asset pricing model (CAPM) equation.
The CAPM allows to relate the risk-free rate of return (RFROR), the market risk premium, the beta of an asset and the expected return of this asset.
Expected return = risk-free ROR + (Beta*Market risk premium)
In this case we know all the parameters but the Market risk premium (MRP), so we have:
We also know that the beta of the market, by definition, is equal to one. So now that we know the market risl premium we can calculate the expected return on the market:
The expected return on the market is 12.72%.
The heading of the business letter should contain a return address which is consists of about two or three lines followed by the date. Before putting a date, you can even put a telephone number, fax number, and email address in the business letter. Business letters are formal letters from a company and to external parties and clients.
Answer:
B) Debit work in process inventory $172,000
Credit Factory Wages Payable $172,000
Explanation:
Option A is not correct answer as the question is to record the production activities for direct labor usage instead of recording production and payment of wages. In option A, Wages payable is debited and cash is credited e.g. payment of wages is recorded and first step of recording production is missed.
Option B is the right answer as it appropriately records production activity for the month of June by debiting work in process inventory and crediting factory wages payable.
Option C is not correct answer as it is directly debiting cost of goods sold, which is debited at the time of sale of goods and goods are transferred from finished inventory to cost of goods sold.
Option D is not correct answer as it is directly crediting cash instead of recording payable. At the end of the month, production activities are recorded and payment entry is recorded at the time of payment depending on the Company policy to pay.
Answer:
General ledger
Explanation:
A general ledger in accounting is a book pf account that is meant to record the business' transaction entries towards the preparation of the income statement and the statement of financial position.
It records activities like sales order processing , accounts receivable , inventory and purchasing , accounts payable and payroll
We have two types of general ledger which are private ledger that records transaction on salaries , wages and capitals , and nominal ledger that records transaction on expense , income , depreciation etc.
