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3 years ago

Explain the significance of capital structure.

2 answers:

7 0

Capital structure maximizes the company's market price of share by increasing earnings per share of the ordinary shareholders. It also increases dividend receipt of the shareholders. Investment Opportunity: Capital structure increases the ability of the company to find new wealth- creating investment opportunities.

mojhsa [17]3 years ago

4 0

Capital structure increases the ability of the company to find new wealth- creating investment opportunities.

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The gdp deflator is used to calculate the inflation rate. True or False

Aleksandr [31]

Answer:

True

Explanation:

The nominal GDP is divided by the real GDP to calculate GDP deflator which is used to calculate the CPI and Inflation rate. So it is true that the GDP delfator is used to calculate inflation rate.

6 0

3 years ago

Fred Sweet runs dancing classes for middle-aged and elderly people. Some of Fred's customers lack physical coordination, and inj

Anuta_ua [19.1K]

Answer: the correct answer is D. That Fred used a fine-print exculpatory clause, which means that the customer lacked knowledge of the clause's existence.

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4 years ago

On November 10 of the current year, Flores Mills provides services to a customer for $8,000 with credit terms 2/10, n/30. The cu

dezoksy [38]

Answer:

D. Cash 8,000

Accounts Receivable 8,000

Explanation:

The commercial terms of the transactions are as follow:

2/10 within the first 10 days of the invoice The payment will be grnated with 2% discount

n/30 during the next 30 days of invoice date, the payment to cancel will be the nominal

The payment is after the discount period, it will be at nominal which is 8,000

5 0

4 years ago

$80,000 in raw materials were purchased on account. $78,000 in raw materials were used in production. Of this amount, $68,000 wa

Thepotemich [5.8K]

Answer:

Explanation:

The journal entries are shown below:

1. Raw material A/c Dr $78,000

To Accounts payable A/c $78,000

(Being raw material purchased)

2. Work in progress A/c Dr $68,000

Manufacturing overhead A/c Dr $10,000

To Raw material A/c $78,000

(Being raw material allocated)

3. Labor wages A/c Dr $126,500

To Cash A/c $126,500

(Being labor wages are paid in cash)

4. Work in progress A/c Dr $104,200

Manufacturing overhead A/c Dr $22,300

To Labor wages payable A/c $126,500

(Being labor wages are allocated)

5. Depreciation A/c $194,000

To Factory Equipment $194,000

(Being depreciation is charged on factory equipment)

6 0

3 years ago

Assume that an investment in bonds classified as trading securities is sold. Which of the following would be included in the two

worty [1.4K]

Answer:

An update of the fair value adjustment account,

Removal of the related investment account balances

The total amount of gain or loss that has occurred since the securities were purchased

Explanation:

The activities that occurred between the purchase and during the sales of bonds classified as trading securities will determine the entries to be recorded.

First, since it was an investment, it means, it had an entry already in the books. Its sales therefore, will mean the books needs to be updated and this will be done through the Fair value adjustment account.

Secondly in updating the fair value, there is the need to remove the related investment account balance. This is because the investment has been sold so it should not be reflected any more.

Thirdly, since the investment was bought at a point, carried for a while and then eventually sold, some gain or loss would have been generated between its acquisition and its sales, therefore the entry for total amount of gain or loss that occurred since the purchase should be made.

Part 4

The items such as the

4 0

3 years ago