Answer:
undervalued assets an liabilities by 50,000
Explanation:
The financial statement for the fiscal year ended on December 31th, 2012
will have the following mistake:
Liabilities are undervalued by 50,000
Cash wll be undervalued by 50,000
As the note payable is not recorded neither the cash receipts from the loan.
Because this transaction is missing, we are not doing a correct representation of reality. This account will be undervalued.
Answer:
Balance in Prepaid insurance as of December 31 is $18,750
Explanation:
<em> </em>Computation of Prepaid Insurance
Insurance 1 ($34,200 * 6/18) $11,400
Insurance 2 ($14,700 * 12/24) <u>$7,350 </u>
Total Prepaid Insurance <u>$18,750</u>
Answer:
b
Explanation:
There are two types of forecasting method
1. Qualitative forecasting
2. Quantitative forecasting
Qualitative forecasting can be described as when subjective judgement or non quantifiable information in forecasting.
<em>When is qualitative forecasting suitable ?</em>
- It is used when historical data in unavailable.
- this method is suitable when it is predicted that future result would depart from what historical data may suggest
<em>Advantages of Qualitative forecasting </em>
- it is flexible
- It can be used when data available is ambiguous or unclear
<em>Disadvantage of Qualitative forecasting </em>
It is subjective.
Quantitative forecasting can be described as forecasting using historical data
Answer:
= 11.85%
Explanation:
After tax cost of debt = (1 - tax rate) x debt
(1 - 0.21) x 15%
0.79 x 15% = 11.85%
The answer to your question is; B. False
