Answer:
Part 2 Which of the following transactions does not involve an accrual?
- Recording the pre-payment of two years' worth of insurance. THIS IS AN ASSET EXCHANGE TRANSACTION SINCE IT CREATES AN ASSET ACCOUNT, PREPAID INSURANCE, THAT DECREASES AS TIME PASSES
Part 3 The recognition of an expense may be accompanied by which of the following?
- An increase in liabilities. EXPENSES ARE NOT ALWAYS PAID IMMEDIATELY, FOR EXAMPLE UTILITIES, THEY FORM A SHORT TERM LIABILITY UNTIL PAID.
Part 4 The adjusting entry to recognize work completed on unearned revenue involves which of the following?
- A decrease in liabilities and an increase in equity. UNEARNED REVENUE IS A LIABILITY ACCOUNT, AND AS THE WORK IS COMPLETED, REVENUE SHOULD INCREASE, THEREFORE EQUITY WILL INCREASE.
Part 5 Which of the following would cause net income on the accrual basis to be different from (either higher or lower than) "cash provided by operating activities" on the statement of cash flows?
- Paid advertising expense. IF THE COMPANY PAID ADVERTISING EXPENSES ON ACCOUNT.
Explanation:
Answer:
There are two ways in which Return on Assets can be calculated depending on whether we consider Total assets at year-end or average total assets.
1
or
2
Substituting the values in equation 1 we get,


Substituting values in equation 2 we get,




The answer is b.
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Answer:
The expected number of nondefective lightbulbs is 980 out of a random sample of 1,000 bulbs.
Explanation:
Hi, if the company is right, this is the operation that we need to do.

So, we are expecting 980 working bulbs out of a sample of 1,000
Best of luck
Answer:
If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .
Explanation:
Price today = Present Value of Dividends
Present Value of Dividends :
Year Dividend Discounting Factor(9.7%)
0 3.0000
1 8.00 0.9115770282588880
2 13.00 0.8309726784493050
3 18.00 0.7574956047851460
4 23.00 0.6905155923292130
year Present Value(Dividend* Discounting factor)
0
1 7.2926162260711000
2 10.8026448198410000
3 13.6349208861326000
4 15.8818586235719000
Present Value of Dividends 47.612040555616600
Therefore, If you require a return of 9.7 percent on the company’s stock, you will pay $47.61 for a share today .