Answer:
A long-term liability should be reported as a current liability in a classified balance sheet if the long-term debt: Is callable by the creditor - Will be refinanced with stock.
Option A is the correct answer.
Explanation:
Generally, a short term liability is required to be paid by the company within a period of 1 year. Nevertheless, if the liability is callable the creditor, the company is not required to pay the liability within a year.
Thus, in this instance, a current liability can be detailed as a long term debt in the balance sheet.
Answer: Supply Management
Explanation:
Supply management is referred to as or known as the task of acquiring, identifying, and also managing suppliers and resources that tends to be essential for operations of the organization. It is also referred to as procurement, i.e. supply management tends to include purchase of commodities such as physical goods, services, information, and several other resources that might enable an organization to continue growing and operating .
Answer:
7%
Explanation:
the firm’s effective interest rate on its borrowing= %paid in form of LIBOR+ % at which bond was issued- % of fixed received.
=5%+ 8%- 6%
=7%
Answer:
The answer is below
Explanation:
a. Fee paid to factory representative for installation - DEBITED to Asset account
b. Freight - DEBITED to Asset account
c. Insurance while in transit - DEBITED to Asset account
d. New parts to replace those damaged in unloading - NOT DEBITED to Asset account
To understand which costs incurred in acquiring the new printing press should be debited to the asset account, it should be noted that "new parts to replace those damaged in unloading" does not lead to improvement in assets, hence, it should be considered as Expense instead of being devoted into the asset account.
Answer:
Required rate of return = 10.75%
Explanation:
<em>The value of a stock using the dividend valuation model, is the present value of the expected future dividends discounted at the required rate of return. The required rate of return is the cost of equity
</em>
The model is represented below:
P = D× (1+g)/ ke- g
Ke- cost of equity, g - growth rate, p - price of the stock
This model can used to work out the cost of equity, as follows:
Ke = D× (1+g)/p + g
Ke = (1.48× 1.05)/27 + 0.05
Ke= 0.107555556
Required return = 0.1075 × 100 = 10.75
Required rate of return = 10.75%
