A general rule in bond valuation is that a decline in interest rates causes bond prices to a. rise b. fall c. remain the
Q: Define the terms assets and liabilities and give examples of each
A: Assets means anything which is owned by business and used in business. Liabilities means which the…
Q: When the account property, plant and equipment are presented in a statement as 20% of the total…
A: Balance sheet is the statement of financial position of the business, which shows all assets,…
Q: ABC Corp sold goods with a list price of P100,000 on terms of 10%, 3/10, 1/15 n/30. Based on…
A: Under the gross method, the accounts receivables are recognized as listed price less trade discount.…
Q: Fine Co. has the following sales forecasts for the third quarter of 2021: P85,000 (July), P88,000…
A: Cash budget is one of the budget of the business, which shows beginning and ending cash balance,…
Q: List the five account categories, specify their natural balance and which financial statement they…
A: Accounts are classified into various categories based on their characteristics.
Q: Which of the following is a basic element of effective budgetary control?a. cost behavior patternsb.…
A: Budgeting is a process that involves estimation of total costs and revenues of a firm over a…
Q: anuary 1, 2019, ET Mags Inc. signed a 6-year non-cancelable lease for an alloy wheel molding…
A: Explanation of Concept In the present case we shall records the lease liability in the books of…
Q: 9. *Faith Company expects to have 5% increase in sales every year. In 2019, the projected sales of…
A: Introduction:- Projected sales is the estimate of revenue your business will generate in the…
Q: a. Determine a present value factor for an annuity of $1 which can be used in determining the…
A: Solution:- a)Determine a present value factor for an annuity of $1 which can be used in determining…
Q: Sisa Corporation has the following data: Selling price per unit Variable cost per unit.…
A: Current credit standard: A Selling price per unit 70 B Variable cost per unit 45 C Variable…
Q: Alpha Ltd makes a range of products all of which follow a similar production process and have the…
A:
Q: Why is it necessary to evaluate the attributes of audit evidence? Explain
A: The answer for the question on evaluation of the attributes of audit evidence is discussed hereunder…
Q: The payment schedule of purchases made on account is as follows: 75% during the month of purchase,…
A: Payment for credit purchases in December = 10% of October + 15% of November + 75% of December
Q: it is not correct!! please make sure you follow all of the steps and answer it correctly. Thank you!
A: The revenue and spending variance is calculated as difference between actual data and flexible…
Q: B00,000.00 5,000,000,00 900,000.0 300,000.00 1,500,000.00 350,000.OC
A: Taxable income is the income which is calculated by adding income from all sources and exempted…
Q: Selling price per unit Variable expenses per unit Fixed expense per month $ 185.00 $ 94.00 $437,240
A: Formula used : Unit sales to attain a target profit = ( Fixed cost + Target profit ) / Unit…
Q: Kiro Corporation acquired a real estate located in Manila City at the beginning of 2020 for a total…
A: Initial Cost of Assets: - Initial cost of assets is the purchase price of the assets including other…
Q: Ben Merchandise presented the following accounts for 2019 and 2018: P1,238,550.00 (current assets…
A: Non-current assets in common-size statement of financial position=Total assets-Current assetsTotal…
Q: Name three different methods of tracking and costing out inventory.
A: Introduction: The term inventory refers to both raw materials used in manufacturing and completed…
Q: transaction asset liability capital we paid supplier $1900 by cheque
A: Paid to suppliers decreases the value of assets and and also the value of liabilities.
Q: 728,964
A: The cash flow statement refers to the financial statement which provides the accurate amount of all…
Q: a Total fed costs and total variable costs will change b. Total fxed costs and total variable costs…
A: Cost Driver - is the factor of cost due to change in cost driver cost of the activities also get…
Q: The total fixed cost and Operating Income are incorrect. Total fixed costs 27450…
A: Solution: Total fixed costs = Fixed manufacturing costs + Fixed selling and administrative expenses
Q: On January I, Bramble Corp. issued 10 year, S6,000,000,9% bonds for $6,842,830. The market rate of…
A: Introduction: A loan that amortizes is one with monthly payments that go toward the principle.…
Q: al payments of $21,980, based on an interest rate of 9% are to be made every December 31, beginning…
A: Given Annual future value payments = $ 21980 r= 9% n= 6yrs Present value of note = FV* Present…
Q: Gobozana Limited has a receivable from its parent Ntuli Limited. Can this receivable be separately…
A: Accounts Receivables: The amount of money that is owed to a company by its customers for products or…
Q: project requires an initial investment of P300,000 on equipment. The project will generate sales…
A: Salvage value of equipment 0 as it will be sold at book value that is 300000, so no depreciation…
Q: On Aug 31, 20X1, ABC Corp received a P2,000,000 12% 4-year note from a customer. Note is collectible…
A: Principal payment on September 1, 20X2 = P2,000,000 / 4 = P500,000
Q: VAN DER LINDE CORPORATION have been operating since 2011 and have not issued any new shares since…
A:
Q: 1.) According to the Organization for Economic Co-operation and Development, corporate governance…
A: Governance is important part of the business.because there need to be coordination between the team…
Q: The operating expenses is deducted from Gross profit but the company should figure out which are the…
A: Operating expenses are the costs incurred in connection with the daily running of business.
Q: Sales revenue for Hy Marx Tutoring was $620,000. The following data are from the accounting records…
A: Introduction: The term "revenue" refers to the quantity of money earned. It is the entire amount of…
Q: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall…
A: Number of days' sales in receivables is the number of days required to get collection from accounts…
Q: The income before taxes of LVY Company in 2015 is equal to P350,900.00. Income tax rate is 30% of…
A: calculation of income tax rate and income tax payable are as follows
Q: okies at a cost of $1.08 per dozen the cookies remain unsold and v
A: Markup means the percentage margin either on cost or sales price.
Q: Until its involvement as Enron’s auditor, Arthur Andersen was recognized as one of the most…
A: Financial statement fraud refers to the willful misrepresentation of financial statements by one or…
Q: In Step 1, operating income. I understand where the 84,000 comes from but where does the 6,000 come…
A: Solution: Return on investment is computed as = Net operating income / Average operating assets…
Q: sued by Dulcinea, Inc. for $1,000,000. Mojito’s attorneys believe that it is probable that the…
A: A contingent liability is a potential responsibility that may develop in the future, such as pending…
Q: 4. What if November production was 56,000 units, costs were stable, and sales were 57,000 units?…
A: Under variable costing system, fixed manufacturing overhead is considered as period cost and same is…
Q: a. Sold merchandise for cash (cost of merchandise $28, 797). b. Received merchandise returned by…
A: Introduction: Journals: Each and every business transactions are to be recorded in Journals. All the…
Q: Prepare adjusting entry for October 31. Show computation. A bank loan amounting to P100,000 was…
A: Adjusting entry is that type of journal entry, which is passed at the end of the period in order to…
Q: During 2021, ABC Co. purchased intangible assets and debited them all to "Intangible assets".…
A: (a)
Q: Perform vertical analysis forlvanhoeClothiers. (Round percentages to 1 decimal place, e.g. 12.1%.)…
A: The horizontal analysis is performed to compare the financial results of two different years. The…
Q: Alexia Jones is a worker at a local 24-hour pharmacy. Alexia works the night shift and is the only…
A: Fraud seems to be a deliberate deception intended to achieve an illegal advantage for the offender…
Q: June 1 Balance 302 unitse $17 June 10 Sold 200 units@ $40 11 Purchased 795 units $20 15 Sold 496…
A: Introduction: FIFO: FIFO stands for First in First out. Which means First received inventory to be…
Q: What are the four major evidence decisions that must be made for every audit?
A: In general term, audit is type of process to check reliability. It is done to check whether the…
Q: Gulay ni Marites Vegetables Shop Income Statement For the year ended Dec 31, 2022 Net Sales…
A: The entire vertical analysis is correct. And it is done as follows: For COGS: 540,600739,200=73.13%…
Q: On Jan, 1, 20X1 ABC Corp sold equipment with a cost of P20,000,000 and accumulated depreciation of…
A: Receivables is the amount of money to be received from customers on some future date.
Q: issue of shares for cash
A: Solution: Cash receipt journal is used to record all type of cash receipts by a buisness.
Q: Net income, currents assets and current liabilities for 2020 are expected to vary with sales. The…
A: As the current assets vary with sales then the expected current assets are based on the change in…
A general rule in bond valuation is that a decline in interest rates causes
Step by step
Solved in 2 steps
- When a bond sells at a discount, the carrying value ________ after each amortization entry. A. increases B. decreases C. stays the same D. cannot be determinedWhich of the follwing statement is correct. As the credit risk of a bond increases: A. The YTM falls and price of the bond falls B. The YTM increases and price of the bond falls C. The YTM falls and price of the bond rises D. The YTM increases and price of the bond risesWhich of the follwing statement is correct. As the credit risk of a bond increases: The YTM falls and price of the bond falls The YTM increases and price of the bond falls The YTM falls and price of the bond rises The YTM increases and price of the bond rises unanswered
- For a bond issue that sells for less than its face value, the market rate of interest is a. Higher than the rate stated on the bond. b. Dependent on the rate stated on the bond. c. Equal to the rate stated on the bond. d. Less than the rate stated on the bond.Which of the following statements is false? A. Other things being equal, an increase in a bond’s maturity will increase its interest rate risk. B. Other things being equal, an increase in the coupon rate of a bond will decrease its interest rate risk. C. Other things being equal, an increase in a bond’s YTM will decrease its interest rate risk. D. Effective duration is calculated as Macaulay duration divided by one plus the bond’s yield to maturity.Which of the following statements is not correct? a) The export value of the bond; the value the investor pays when buying bonds b) Nominal value of the bond; is the value written on the bond c) Another reason for the difference in bond market prices is the dividend paid to bonds. d) Periodic interest amounts on bonds are calculated at nominal value. e) Market value of a bond is equal to the present value of the interest to be paid by the bond and the principal amount to be paid at the end of maturity. ------------------ What is the market value of İdil Gıda's bond with a nominal value of 15000 USD, maturity of 3 years and 30% annual interest payment, assuming that the desired yield rate is 36%? a) 12500b) 13494c) 9000d) 5456e) 7594 ============ What is the market value of Beril Gıda A.Ş.'s bond with a nominal value of USD 12,000, maturity of 5 years and an annual interest payment of 25%, when the desired rate of return is 25%? a) 18000b) 15000c) 12000d) 16000e)…
- A premium occurs when the issue price of a bond is above its face amount. True or False True FalseThe market rate of interest for a bond issue that sells for more than its face value is a. Equal to the rate stated on the bond. b. Higher than the rate stated on the bond. c. Not dependent on the rate of the bond. d. Lower than the rate stated on the bond.Under what situation might a bond discount arise when issuing bonds? Select one: a. The coupon rate is less than the effective or yield rate. b. The effective or yield rate is less than the coupon rate. c. The coupon rate is less than the cash rate of interest. d. The effective or yield rate is less than the market rate of interest.
- All else equal, which bond price is more affected by a change in interest rates, a short-term bond or a longer-term bond? Why?The method used to value a default-free zero coupon bonds (such as T-bills) requires that the interest is deducted from the face value of the bonds in advance. a.rediscounting b.market price c.forward price d.discount interestWhich of the following is TRUE about a bond's face (par) value? Select one: a. the face value of a bond is the same as the bond's price b. the par value of a bond is the interest payment c. the face value of a bond changes when yields change d. the value of a bond will always be equal to par at maturity.
