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2 years ago

True or False?

Business

1 answer:

exis [7]2 years ago

7 0

Answer:

a. Financing for public corporations must flow through financial markets.

FALSE, it can flow through financial markets or financial intermediaries.

b. Financing for private corporations must flow through financial intermediaries.

FALSE, it can flow through financial markets or financial intermediaries.

c. Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.

FALSE, they are traded in many different markets around the world.

d. Derivative markets are a major source of finance for many corporations.

FALSE, the major source of financing for corporations are stock markets.

e. The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.

FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.

f. The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.

FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.

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The manufacturer of the gift boxes that Sylvia sells has offered her an incentive. What is this called?

yan [13]

The manufacturer of the gift boxes that Sylvia sells has offered her an incentive. What is this called? Push money. Push money is an incentive that is paid by a manufacturer to distributor so that they will sell their products. When the distributor sells the products for the manufacturer both end up making money overtime. It benefits the manufacturer to give an incentive for the distributor to sell their items because of the profit it ends up generating for the manufacturer.

4 0

3 years ago

During 2016, Ayayai Corporation spent $144,000 in research and development costs. As a result, a new product called the New Age

tatyana61 [14]

Answer:

Please see below the journal entries of Ayayai Corporation for the year ending 2016 and 2017 respectively.

Explanation:

Ayayai Corporation

Journal Entries

For the Year ending 2016

Debit: Research & Development Expense $144,000

Credit: Cash $144,000

To record research and development expense.

Debit: Patent $17,400

Credit: Cash $17,400

To record legal cost relating to Patent.

Debit: Amortization Expense $435

Credit: Patent $435

To record amortization expense for the pro rated year.

Ayayai Corporation

Journal Entries

For the Year ending 2017

Debit: Amortization Expense $1,740

Credit: Patent $1,740

To record amortization expense for year.

AMORTIZATION EXPENSE CALCULATION:

Legal Cost = $17,400

Useful Life = 10 Years

Amortization Expense = Legal Cost / Useful Life

Amortization Expense = $17,400 / 10

Amortization Expense = $1,740 per year

But since in 2016 the patent was obtained on October 1, so Ayayai Corporation will have to pro rate the Amortization Expense in 2016 as below:

Amortization Expense = Annual Amortization Expense x No. of months / Total no. of months

Since patent was obtained in October so the No. of months is '3'

Amortization Expense = $1,740 x 3 / 12

Amortization Expense = $435

5 0

3 years ago

Read 2 more answers

Santa Claus is trying to forecast demand for coal this Christmas. For the past 300 years, the numberof naughty children (who wil

Darina [25.2K]

Answer:

The correct answer is B. Trend analysis.

Explanation:

The trend analysis is the method of analysis that consists in observing the behavior of the different items of the Balance Sheet and the Income Statement, to detect some significant changes that may have their origin in administrative errors.

This method allows us to know the direction and speed of the changes that have occurred in the financial situation of the company over time, so it is considered as a method of horizontal analysis.

It helps us to detect failures; but it is only an exploratory method, so it is always necessary to investigate further to find the causes of the failures. It is necessary to determine the changes suffered in the balances of the financial statement items that we are interested in analyzing. The trend analysis allows us to know the financial development of a company.

3 0

3 years ago

Supporters of rent control say that it _____ the price of renting an apartment. raises lowers does not change

denis23 [38]

Answer:

The answer is lowers.

Explanation:

Supporters of rent control say that it LOWERS the price of renting an apartment.

Rent control is an administration program that puts a limit on the sum that a landowner can charge for renting a home or for renewing lease

Rent control laws are typically established by regions and the subtleties differ broadly. All are planned to continue living costs reasonable for lower-salary occupants.

Rent control laws mostly limit the amount a landlord can increase rents on existing tenants. Therefore Rent control is controversial. In fact, 37 states have laws that forbid local governments from enacting such measures.

6 0

3 years ago

Many former employees at AlphaEnergy, an energy trading and supply company, had a large

Virty [35]

Answer:

Letter A is correct. Unsystematic risk.

Explanation:

Unlike systematic risk, which is an inherent market risk, unsystematic risk is inherent in a specific sector or company.

The case in point concerns the investment of former AlphaEnergy employees, which is a unsystematic risk, as the investment risk in single-company shares includes regulatory changes, management changes, loss of market due to competition and withdrawal of the product from the market.

To reduce this type of risk, investors should seek diversification in their stock portfolio.

7 0

3 years ago