Answer:
The correct answer is option D.
Explanation:
Long-run elasticities of demand differ from short-run elasticity. In the short period is more inelastic. This is because people take time to adjust their consumption habits. So if the time period people have to adjust to the price change is long, then the demand will be elastic.
Durable goods can be used for a relatively long time. So they will have a less elastic demand.
Answer:
8.30%
Explanation:
The weighted average cost of capital of the company is computed using the WACC formula below:
WACC=(We*Ke)+(Wp*Kp)+(Wd*kd)
We=weight of common equity=50%
Ke=cost of retained earnings which is a proxy for the cost of equity=11.50%
Wp=weight of preferred stock=20%
Kp=cost of preferred stock=6.00%
Wd=weight of debt=30%
Kd=after-tax cost of debt=4.50%
WACC=(50%*11.50%)+(20%*6.00%)+(30%*4.50%)
WACC=8.30%
Complete question:
Assume the following general flow of documents in an accounting system. Reply to the following question:
"Source Documents --> Journals --> Ledgers"
The auditors are concerned about source documents that reflect valid transactions that have not been recorded in the journals. Which procedure would be most effective?
(1) Trace from source documents to journals.
(2) Vouch from journals to source documents.
Either (1) or (2).
Answer:
(1) Trace from source documents to journals.
Explanation:
Tracing is the method of tracking the transaction back to the source document in accounting records. Transaction failures are monitored and auditors are often used to ensure whether transactions have been properly reported.
Tracing relates to the compilation and the follow-up to the record of an financial transaction (the source document).
Tracing checks to see that the transactions that happened in the financial reports are registered. Therefore it would be most effective to translate "Trace documents from source into journals."
Answer:
Option 2
I. State the facts of the company’s financial situation
II. Explain
A. The reasons why the company needs to take drastic action
B. The benefits of the company’s strategy
III. Inform the employees they will receive a 15 percent pay cut
IV. Close with a forward-looking statement.
Explanation: Based on the above question,the most appropriate option will be option 2.
When presenting a situation to a public or a person it is very important to give a brief about the situation where the audience will be expected to understand, once the audience Understands the prevailing situation,it makes their response and acceptance easy and more likely.
OPTION TWO IS THE MOST APPROPRIATE IN THIS SITUATION AND WILL YIELD THE MOST POSITIVE RESULTS.
Answer:
$2,000
Explanation:
Depreciation: The depreciation is a non-cash expense that shows a decrements in the value of the fixed assets due to tear and wear, obsolesce, usage, time period, etc. It is shown on the debit side of the income statement.
The computation of the depreciation expense under the straight line method is shown below:
= (Original cost of milling machine - salvage value) ÷ (expected useful life)
= ($15,000 - $2,000) ÷ (7 years)
= ($14,000) ÷ (7 years)
= $2,000
In this method, the depreciation is same for all the remaining useful life
