Answer:
I belive its c.
Explanation:
It says interest EARNED on INVESTMENTS which would be a good thing not an expense.
If you invest in something you can get the money back
Answer and Explanation:
The preparation of the balance sheet is presented below:
Assets
cash $11,000
account receivable $15,000
equipment $10,000
buidlings $65,000
land $31,000
Total assets $132,000
Liabilities and stockholder equity
Account payable $11000
common stock $80,000
retained earnings $41,000
Total Liabilities and stockholder equity $132,000
Answer:
1- Change the advertising image of the brand. Every year trends change and therefore adjustments must be made so that the products adapt to the modern.
2- Market study to know if the products are advancing according to the project according to the participation of the square.
3- In the market study, the prices must also be reviewed, which must be consistent with the competition
4- Discounts could be offered on the products, to attract new customers.
The competitive advantages of performing these actions is that the products and in the consumer's mind will always be updated.
Answer:
Option C). This is a capital lease because it meets at least one of the four capital lease criteria.
Explanation:
In the following situations, the lease transactions are called Finance Lease.
i) The lessee will get the ownership of leased asset at the end of the lease term.
ii) The lessee has an option to buy the leased asset at the end of lease term at price, which is lower than its expected fair value at the date on which option will be excercised.
iii) The lease term covers the major part of the life of asset.
iv) At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset.
In the given question, Present value of minimum lease rental amounting to $ 78 million covers substantially 94 % portion of the initial fair value of leased asset. Accordingly, last condition / last situation mentioned above to treat lease as finance lease is satisfied in the given question. In other words, out of four capital lease criteria mentioned above, fourth criteria / fourth condition (At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset) is satisfied in this given question.
Present value of minimum lease rental as a percentage of initial fair value of leased asset :-
= (78 Million / 83 Million ) * 100
= 0.94 * 100
= 94 % (approx).
Lease in given question is capital lease because it meets at least one of the four capital lease criteria.
