Answer: Grapevine
Explanation:
Dissemination of information or conversations in an informal way in an organization.
Answer:
Correct option is C
<u>Overall operating income will decrease by $25,000.</u>
Explanation:
Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3
Sum of sales ratio = 2+3 = 5
Common fixed cost:
Product 1 = 2/5×46,000 = $18,400
Product 2 = 3/5×46,000 = $27,600
Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000
Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)
Answer:
A. True
Explanation:
Hedging transactions can be described as derivative that are purchased in order to reduce investment risk of investments by using options, futures or forward contracts as insurance.
A futures market refers to a central financial exchange where standardized futures contracts are bought and sole as defined by the exchange.
Generally, positive net present value (NPV) is yielded by hedging. But the NPV will be zero or even slightly negative as when the market becomes active about the future.
Based on this explanation, the correct option is <u>A. True</u>. That is, hedging transactions in an active future market have zero.
Answer:
Debit Credit
Bank/Cash $200,000
Bonds payable $200,000
Explanation:
The journal entry which shall be recorded by Meister Company in its accounts in respect of bonds issued by it, on January 1, 20X1, is mentioned below:
Debit Credit
Bank/Cash $200,000
Bonds payable $200,000
