Answer:
debit Rent Expense, $1,500; credit Prepaid Rent, $1,500.
Explanation:
Answer:
The correct answer is letter "D": The use of a higher estimated life and a higher residual value will lower the annual amount of depreciation expense recognized on the income statement.
Explanation:
Depreciation distributes the cost and cost over the useful life of the assets of tangible and real assets. A business could depreciate an asset over a period of up to thirty years, depending on the type of asset it is. There are many depreciation methods but, among the most common we can find the <em>Straight-line method, the Double Declining Balance method</em>, and <em>the Units of Production method</em>. As long as the estimated life of the asset and its residual value is high, the amount filed for the depreciation will be lower.
Flow to Equity (FTE) is the approach to capital budgeting that discounts the after-tax cash flow from a project going to the equity holders of a levered firm.
An alternative capital budgeting strategy is the flow to equity (FTE) or free cash flow approach. The FTE approach merely requires that equity capital be discounted at the cost of the cash flows from the project to the equity holders of the leveraged firm. The amount of cash that a company's equity shareholders have access to after all costs, reinvestment, and debt repayment is taken into account is known as flow to equity. Free Cash Flow to Equity (FCFE) is calculated as Net Income - (Capital Expenditures - Depreciation) - (Change in Non-cash Working Capital) - (Change in Non-cash Equity) + (New Debt Issued - Debt Repayments) This is the cash flow that can be used to repurchase stock or pay dividends.
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Answer:
True
Explanation:
An activity based costing (ABC) system assigns resources to the different production activities, and then unit costs are determined by the proportion of the production activities that every unit requires.
This is a much more complex costing method than just assigning overhead costs based on direct labor hours or machine hours.
The economic interdependence among nations is often measured by their openness.
What is economic interdependence?
The term "economic interdependence" refers to a measurement of the value of economic exchanges between two nations or between a nation and the rest of the globe, sometimes scaled to total national production or some other indicator of total financial assets. Globalization is one of the effects of economic interconnectedness. Each country's economy is at this point reliant on the supply of goods from other countries. For instance, China is currently a major supplier of goods to the United States.
Therefore,
The economic interdependence among nations is often measured by their openness.
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