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2 years ago

Which of the following statements is correct with respect to economic incentives to release financial information?

Business

1 answer:

makvit [3.9K]2 years ago

8 0

Answer:

Explanation:

If investors do not have adequate information about the company they are investing, they would demand an higher rate of return. This would increase the cost of raising capital. So, financial managers who want to raise capital at a cheap rate would have the incentive to disclose information

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4. Firm E must choose between two alternative transactions. Transaction 1 requires a cash outlay of $9,000; this expense would b

Pie

Answer:

a. Transaction 1

It is not deductible so the Taxable income is $9,000

Transaction 2

It is deductible, taxable income would be;

= 13,500 * ( 1 - Tax)

= 13,500 * ( 1 - 20%)

= $10,800

b. Transaction 1

It is not deductible so the Taxable income is $9,000

Transaction 2

It is deductible, taxable income would be;

= 13,500 * ( 1 - Tax)

= 13,500 * ( 1 - 40%)

= $8,100

8 0

2 years ago

What is the annual cost per mile of operating a car given the following information? Item Value Annual miles driven 11,800 Gas c

GarryVolchara [31]

Answer:

Annual cost per mile of operating a car=$0.409 per mile

Explanation:

Step 1: Calculate the total cost of gas and other associated cost

Total cost of gas=price per gallon×number of gallons consumed

where;

price per gallon=$ 2.79

number of gallons consumed=24

replacing;

Total cost of gas=(24×2.79)=$66.96

Additional costs=Annual depreciation+interest+insurance+license+

repairs/oil+parking

where;

Annual depreciation=$2,500

interest=$650

insurance=$680

license=$65

repairs/oil=$370

parking=$498

replacing;

Additional costs=(2,500+650+680+65+370+498)=$4,763

Total costs=total gas cost+additional cost=(66.96+4,763)=4,829.96

Total annual operating cost=$4,829.96

Annual cost per mile=Total annual operating costs/number of miles driven

Annual cost per mile=4,829.96/11,800

Annual cost per mile=$0.409 per mile

5 0

2 years ago

Vocational education is one path to a career

balu736 [363]

Answer:

It's true I think if I'm wrong do tell me.

5 0

2 years ago

A random sample of 16 students selected from the student body of a large university had an average age of 25 years and a standar

Alla [95]

Not significantly different from 24

3 0

2 years ago

Maso Company recorded journal entries for the issuance of common stock for $200,000, the payment of $65,000 on accounts payable,

cricket20 [7]

Answer:

Increase of $95,000

Explanation:

Stockholder equity: It records the issue of shares, retained earnings, and deduct the dividend amount if declared.

The expenses which are related to the business is directly or indirectly affect the stockholder equity.

So, the net effect is shown below:

Issuance of common stock = $200,000

Less - Payment of salaries expense = $105,000

So, the net effect would be equal to

= $200,000 - $105,000

= $95,000

The accounts payable does not affect stockholder equity. So, it would not be considered.

This $95,000 would increase stockholder equity.

7 0

3 years ago