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notsponge [240]
3 years ago
6

A six-year Finance Lease entered into on December 31 of the current year specified equal annual lease payments due on December 3

1 of each year. The first annual lease payment, paid on December 31 this year, consists of which of the following?
1. Interest expense
2. Lease liability

a. Yes Yes
b. Yes No
c. No Yes
d. No No
Business
1 answer:
Mkey [24]3 years ago
7 0

Answer:

C

Explanation:

Finance lease is an indirect way of providing a finance for an asset through a lease arrangement. The lessor acquires the asset and leases it out to the lessee , however , the lessee recognizes the leased asset as an asset in its book provided certain lease conditions are met.

The two components of finance lease obligation are Interest and the lease payment.

In this scenario , as the payment was made at the onset of the lease arrangement , no interest expense has accrued and none will be recognized. The first lease payment made will reduce the lease liability of the asset as agreed in the arrangement. .

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A vendor raises the cost of materials you planned to order, and the increased cost will put your project over budget. Which shou
artcher [175]

Answer:

A. Review the budget to identify other areas where costs can be cut.

Explanation:

In the case when the vendor increased the material cost that planned and the increased cost would also be placed in your project i.e. over budgeted so the first thing you should do is review the budget by identifying the areas where the cost cutting to be done

Therefore as per the given situation, the option A is correct

And, the rest of the options are incorrect

3 0
3 years ago
1. Discuss the following statement: "Corporations are not really run by their owners."
sergij07 [2.7K]
<span><span>1. </span>Discuss the following statement: "Corporations are not really run by their owners." Corporations are run by everyone who works for the corporation and without everyone working together, it will not run smoothly and bring in revenue.
</span> <span>
2. Why might an investor choose to become a partner in a limited partnership instead of purchasing the stock of an open corporation? If an investor decided to join in a limited partnership instead of purchasing the stock on an open corporation they would have less to do with the business side as they would in an open corporation. When an investor joins in a limited partnership they have less management responsibility and little to no liability besides their initial investment.
</span> <span>
3. Is growth a good thing for all firms? How does management know when a firm is ready to grow? Growth is not a good thing for all firms. Depending on what a company is looking to achieve long term, the financial assets they have now to achieve their growth and other goals are all subject to what the company is able to do with the finances and staffing they have. When a corporation is trying to decide whether or not they should grow, management will examine all aspects of the company to make sure they align with the growth plan.
</span> <span>

4. If you were to start a business, which ownership form would you choose? What factors might affect your choice? If I were to start a business, I would probably choose a limited liability company (LLC) as the ownership form and structure. An LLC is where the members within the company are not held personally liable for the company’s debts or liabilities. Think ownership form works well if you were to join forces an open up a business with a friend or family member. An LLC keeps the tax side of the business easier as allowing the individuals to be self-proprietors. When considering factors that may change this decision they would include: who I am going in business with, what I am in business for, my end goals, current goals and current financial status. </span>
3 0
3 years ago
14 . Private solutions to correct for externalities
Arisa [49]
It is C so uh yeah okay :)
8 0
3 years ago
Find the future value of a five-year $113,000 investment that pays 10.00 percent and that has the following compounding periods:
Sati [7]

Answer: Future Value FV = 169,500

Explanation:

The information given to us are;

Present value PV = 113000

Interest R = 10% = 0.01

number of years T = 5

Future value FV = ?

So using the formula

FV = PV * [1 + (R * T)],

We input our value

FV = 113000 * [ 1 + ( 0.1 * 5) ]

FV = 113000 * [ 1 + 0.5]

FV = 113000 * 1.5

FV = 169500

3 0
3 years ago
Calculate the dollar rates of return on the following assets: A painting whose price rises from $200,000 to $250,000 in a year.
Gennadij [26K]

Answer

A. 25%

B.8%

C. 1.2%

Explanation:

a)

($250,000 − $200,000)/$200,000 = 0.25 or 25%

b)

($275 − $255)/$255 = 0.08 or 8%

Their was No exchange rate movements involved assets & returns all in U.S. dollars

c.

Step 1: £10,000 * $1.50/£ = $15,000 initial $ investment

Step 2: £10,000 * (1.10) = £11,000 at end of year

Step 3: £11,000 * $1.38/£ = $15,180 at end of year

Step 4: ($15,180 - $15,000)/$15,000 =

0.012, or 1.2%

7 0
3 years ago
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