To make a large purchase (most) ask the following questions, worthwhile?, investment opportunities?, lasting of purchase?, and necessity or want.
<h2>Yes because Debbie lived with Sandra as a member of her household for all of 2019</h2>
Explanation:
Important information to take into consideration to answer the question:
Sandra has taken health insurance during the year 2019
Sandra has covered both himself and Debbie
Considering the above information, Sandra can claim from insurance because Debbie lived with Sandra in 2019 ie. the year same as the year in which the policy has been taken. Debbie's gross salary is not a barrier for the given situation.
Option B stands false because gross income is considered as a barrier.
Answer: Options (A), (C) and (D) are correct
Explanation:
Yield to maturity ,is referred to as or known as theoretical IRR or internal rate of return that is earned by a person or investor who tends to buy that bond at the respective market price, also assuming the bond is enclosed till maturity, and further knowing that coupon and other principal payments are to be made on the schedule. YTM is referred to as or known as discount rate on which sum of future cash flow tends to be equal to current price of bond.
Answer:
E. Sunk Costs that have been expensed for tax purposes
Explanation:
A relevant casf flow is a future cashflow that arises as direct consequence of a decison. A cost or revenue is cosidered to be relevant cash flow to a decision if it satisfies all of the following three (3) conditions:
- Future: A decision is a choice step of action to be taken in the future. Therefore no cost or revenue should be recognised until the action is taken. Costs that have been incurred in the past prior to the decision should not be considered and are therefore not relevant. They are called sunk cost. Sunk costs are not relevant costs.
- Cash-based: items of expenditures that do not result in the movement of cash should not be considered. e,g depreciation, amortization, provisions, e.t.c
- Must arise as a direct consequence of a decision. Also, only costs and benefits associated to decision should be included and consider as relevant. i.e incremental costs and benefits
Opportunity cost: the is the value of the next best benefit sacrificed in favour of a decision. Where taking a decision would lead to a loss of benefits The lost benefits are therefore costs to be charged to the decision.
Cannibalization Effects. This occurs where the introduction of a new product by a firm causes a loss of sales and profits from the the existing product line. The loss of sales is an opportunity cost to be charged to the new product.
The United states department of transportation
