Answer:
The correct answer is False.
Explanation:
Foreign direct investment, in socialization is the placement of long-term capital in some part of the world, for the creation of agricultural, industrial and service companies, with the purpose of internationalizing.
There are several reasons for a company to decide to invest in another country. Almost all the arguments that have been offered for the existence of FDI can be grouped under three basic objectives: the attempt to participate in new markets, increase production efficiency through cost reductions and the attempt to exploit certain strategic assets. Next we will explain in more detail each of these three objectives.
Answer:
The detailed answer is given below;
Explanation:
The company has received an offer of $96,000 for equipment. It means that if the equipment is sold in market, it will fetch a revenue of $96,000.
Whereas the company is thinking for expansion option, in such case the cost of equipment for that project will $96,000 because as per definition of opportunity cost, this system if not used in expansion; can readily be sold out in market for $96,000.
Therefore the relevant cost for the project shall be $96,000 because this is the amount that Webster and Moore can loose if not sold in the market.
Your KEY word is private. The companies may be limited liability, but because they are private, that means that they are privately owned. Privately owned companies are not traded on stock exchange. Often a corporation will issue stock in what’s called an Initial Public Offering. This is to raise capital and allows anyone from the public sector have access to ownership of the company through buying shares of stock. If the company were privately held, it would be owned by the employees or a few investors or a combination
Answer:
Explanation:
The adjusting journal entry is shown below:
Interest receivable A/c Dr $200
To Interest revenue A/c $200
(Being the interest earned is recorded)
Since the interest would not be received but it is earned so we debited the interest receivable account and credited the interest revenue account.
The other accounts which are given in the brackets are wrong.
Answer:
Debit Inventory $40,600
Credit Cash account $40,600
Being entries to recognize the cost of inventory
Explanation:
The initial recognition of inventory is to be done including all the cost incurred in bring inventory to the place of use or storage. These includes freight and the cost of the item. When inventory is purchased on account, entries required are Debit Inventory, credit account payable. Where cash is paid, the debit is same but the credit entry is posted to the cash account.
Hence total cost incurred (which is the cost of inventory)
= $40,000 + $600
= $40,600
