Answer:
13.10%
Explanation:
Required return = Risk-free rate + (Beta * Market risk premium) ...... (1)
Where;
Required return = ?
Risk-free rate = 4%, or 0.04
Beta = 1.3
Market risk premium = 7%, or 0.07
Substitute the values into equation (1), we have:
Required return = 0.04 + (1.3 * 0.07) = 0.1310, or 13.10%
Therefore, the required return on Hughes Corporation stock is 13.10%.
Answer:
NEUTRALITY, COMPLETENESS AND FREE FROM ERRORS.
Explanation: IASB( International accounting standards board) is board regulating the preparation of accounting Reports or statements. It released its first framework called CONCEPTUAL FRAMEWORK in the year 1989.
The qualities of a faithful conceptual framework by IASB is to guarantee NEUTRALITY, COMPLETENESS AND ENSURE THAT THE STATEMENT IS FREE FROM ERRORS.
This framework will help to prevent disputes and manage standards in preparation of account statements.
Answer:
$399,000
Explanation:
We need to understand that deductible is a portion of a loss that is covered in the policy but must be paid by the insurance purchaser, these terms stated in the insurance contract.
Here, the actual value of the business personal property at the time of this report was $400,000. (Only the actual value is covered)
Deductible is = $1,000
Acme's insurer will pay an amount of $399,000 ($400,000 - $1,000) for the described loss.
Answer:
Debit Allowance for Doubtful Accounts for $8,500;
Credit Accounts Receivable for $8,500.
Explanation:
The journal entry to record the write-off for Mckinney will look as follows:
McKinney & Co.
Journal Entry
<u>Account title and explanation Dr ($) Cr ($) </u>
Allowance for Doubtful Accounts 8,500
Accounts Receivable 8,500
<u><em>(To record uncollectable amount due from Mangold Corporation.) </em></u>
Note that since the management of McKinney decided that $8,500 due from Mangold Corporation will not be collectible, this implies that the Accounts Receivable will reduce by that amount. Therefore, the entries to make to show the reduction in the amount of account receivale by $8,500 is to Debit Allowance for Doubtful Accounts for $8,500 and Credit Accounts Receivable for $8,500.