Answer:
Financing decision
Explanation:
Financing decision is concerned with borrowing and allocating funds for investments.
As such, the decision to borrowed 745,000 dollars and use the fund to build a new restaurant for 745,000 dollars is a financing decision.
Capital Budgeting decision-making process involves plans around any long term capital expenditures whose returns (cash inflows and outflow) are expected to be earned in more than a year.
Answer:
8.46%
Explanation:
Calculation for the the taxable equivalent yield for this investment
Using this formula
Taxable equivalent yield
=Tax-exempt yield / (1 − Your tax rate)
Let plug in the formula
Taxable equivalent yield=0.055 / (1 - 0.35)
Taxable equivalent yield=0.055/0.65
Taxable equivalent yield=0.0846*100
Taxable equivalent yield= 8.46%
Therefore the taxable equivalent yield for this investment is 8.46%
Answer:
Option C Credit to Unearned Management Fees for $62,000
Explanation:
The reason is that the unearned managment fees are liabilities and so are credit in nature just like other liabilities. It is also the requirement of accrual accounting system that says the revenue and expenses must only be recorded when they are realized. Which means the revenue share for example which is $1000 must be recorded as revenue when we will deliver our customers services of one month. It doesn't matter if the revenue amount is not received in cash. So delivering your share is compulsory here to recognize sales or services.
Answer:
a. Cash 5,684 Sales discounts 116 , Accounts receivable 5,800
Explanation:
The journal entry is shown below:
Cash A/c Dr $5,684
Sales Discount A/c Dr $116
To Accounts receivable $5,800
(Being cash received recorded)
The computation of the account receivable
= $5,800
And, the discount would be
= Accounts receivable × percentage given
= $5,800 × 2%
= $116
The remaining amount would be credited to the cash account i.e $5,684 ($5,800 - $116)
