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3 years ago

According to gaap which method should be used to record the acquisition of a fixed asset

1 answer:

4 0

According to gaap, the method that can be utilized in recording the acquisition of a fixed asset is Cost method.

In GAAP , the one method that is notable and accurate in recording a fixed asset is the cost method.

The cost method can be regarded as method utilized in recording the acquisition cost of the fixed asset as well as the costs of bringing the fixed asset to the condition that is needed for it to be used as well as the required location.

Therefore, cost method helps in recording acquisition of a fixed asset .

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Money is neutral in:___________

babunello [35]

Answer:

Explanation:

Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.

Nominal variables include price, wages and exchange rate

real variables include employment and real GDP

Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.

Money is neutral only in the long run

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2 years ago

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 p

ycow [4]

Answer:

6.52%

Explanation:

For computing the nominal yield to call, first we have to find out the present value by applying the present value formula which is shown in the attachment below:

Future value = $1,000

Rate of interest = 6.50% ÷ 2 = 3.25%

NPER = 15 years × 2 = 30 years

PMT = $1,000 × 8.25% ÷ 2 = $41.25

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $1,166.09

Now to determine the yield to call we use the RATE formula that is shown in the attachment below:

Present value = $1,166.09

Future value or Face value = $1,120

PMT = $1,000 × 8.25% ÷ 2 = $41.25

NPER = 6 years × 2 = 12 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the bond nominal yield to call is

= 3.26% × 2 years

= 6.52%

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3 years ago

You invested $5,000 in the Cog corporation and $5,000 in the Gear corporation. Both of these corporations have $100 million in t

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Answer:

(d) Gear is more efficient than Cog.

Explanation:

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3 years ago

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Which type of private security personnel provides the given service?

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Answer:

Private security guards provide security for people and facilities. They typically deal with issues related to trespassing, burglary, theft, or threats to their clients.

Explanation:

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3 years ago

Long-term investments include:_____.A. Investments in marketable bonds that are intended to be converted into cash in the short-

Law Incorporation [45]

Answer:

B. Investments that are not readily convertible to cash or not intended to be converted to cash in the short term

Explanation:

Long term investments are assets that a firm intends to hold onto for a period exceeding one year. They include projects, and investment vehicles are expected to generate revenue for several financial periods. Long term investments are characterized by a higher degree of risk in pursuit of greater rewards.

Examples of long term investments include bonds, stocks, plants and machinery, and real estate. Long term investments such as real estate and machinery are not easily disposed. Some are never disposed.

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3 years ago