1) A corporation may choose to use debt financing because a) it has an income tax advantage. b) it typically has a higher cost of capital than equity. c) it carries voting rights. d) it reduces financial leverage.
Q: Given the building layout for Store A, Store B, Störe C, and Store D, what portion of the shared $60...
A: Answer) Calculation pf Security Costs Allocated to Store C Security Costs allocated to Store C = (Ar...
Q: unes Corporation uses the weighted-average method in its process costing system. This month, the beg...
A:
Q: What is the amount of Long-term assets assuming the accounts above reflect normal activity? O $330,0...
A: Long Term Assets = Equipment + Patents + Land
Q: Blossom Leasing Company agrees to lease equipment to Blue Corporation on January 1, 2020. The follow...
A: Date Particular Debit Credit Jan 1,2020 Leased Equipment a/c To lease liability a/c (being le...
Q: s it true of false that stock sold for amounts in excess of par value results in a gain reported on ...
A: A company issues its common stock at par value or at an amount more than the par value. The amount i...
Q: When Danny withdrew from John, Daniel, Harry, and Danny LLP, he was paid P80,000, although his capit...
A:
Q: Unit cost Total Cost Units Beginning Inventory 100 $18.00 $1,800.00 Purchase 700 $20.00 $14,000.00 8...
A: Solution Cost of good sold is a cost which is incurred for the salw of a product.
Q: Intra-period tax allocation is the allocation of the total income tax expense to the various revenue...
A: Intra-period tax allocation means the allocation of income tax expense. Income tax expense is the am...
Q: Which TWO of the following would be regarded as cost objects? a) A branch of a high street chemist...
A: Solution Cost object is any item for which costs are being separately measured.
Q: Citricacid plc budgets during its first year of operations to produce and sell 38,160 litres of prod...
A: Absorption costing is the costing system where the total cost ( variable and fixed) is allocated to ...
Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000, It is e...
A: Given, Cost of asset = $170,000 Useful life = 5 years Salvage value = 30,000 Under straight line m...
Q: PSc 2-3 Calculate Weekly Regular Earnings Calculate the weekly regular earnings for each of the f...
A: Normal regular working hours = 4.0 hours , therefore upto 40 hours the wages are paid at regular rat...
Q: ecuriPrint Ltd produces pre-printed cheques for customers to use in automated account payable depart...
A: The profit is calculated as difference between sales revenue and total costs incurred for production...
Q: A company incurred $200,000 of manufacturing cost during the month, with a beginning finished goods ...
A: Formula: Cost of goods sold = Beginning finished goods + Manufacturing costs during the month - Endi...
Q: The costs most relevant to be used in decision making are: a. sunk costs O b. current costs O c. est...
A: Cost: It implies to the expense that is incurred on the manufacturing of a product or rendering serv...
Q: Laura Hall is the sole owner of Wildhorse Vista Park has compiled the following financial informatio...
A: In this question, we have to make a balance sheet Assets are resources that are controlled which re...
Q: A corporation has a taxable income of $2,282,175. At this income level, the federal income rate is ...
A: Tax- Individuals, businesses, estates, and trusts pay federal and state income taxes on a chargeable...
Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of ...
A: Formula: Interest expense = Loan Amount x Interest rate x Time period
Q: Jefferson Inc. has the following information for the month of September. The company applies OH cost...
A: In this question, we will calculate the total manufacturing overhead is under applied or over applie...
Q: Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low...
A: Variable cost per Machine Hours= (Highest activity cost - Lowest activity cost) / (Highest Machine H...
Q: Explain the status and purpose of the Conceptual Framework.
A: Solution The purpose of conceptual framework for financial reporting is to assist the IASB in the de...
Q: For each of the following statements, say whether they are True or False, and give a brief ezplanati...
A: Solution:- For each statements, given say whether they are true or False
Q: reet ch
A: A cost object can be a department , product , service or anything for which cost can be assigned . ...
Q: Exercise in Calculating Activity Ratios United Instruments, Inc. Selected Financial Statement Statis...
A: By analyzing financial records such as the financial statement, ratio analysis is a quantitative tec...
Q: Given that the closing work-in-progress of a process is 400 units, which is 100% complete with rega...
A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...
Q: Given that the closing work-in-progress of a process is 400 units, which is 100% complete with regar...
A: For calculating equivalent units, we will need to use below formula. Equivalent unit for material = ...
Q: S.A.Q 1.5 ACTIVITY 4: Freight Kim Taehyung paid for P3,000 freight for the goods he purchased from H...
A: FOB shipping point FOB shipping point means that the ownership is transferred to the buyer when the ...
Q: On January 1 of the current year, Yellow Company purchased 40% of the outstanding ordinary shares of...
A: Reported income: The investor's portion of the joint venture's earnings and losses is included in th...
Q: On January 1, 2024, Lanny, Inc. purchased a copyright for $410,000 cash. The copyright is expected t...
A: Formula: Depreciation expense = ( Asset cost - Salvage value ) / Useful life
Q: An analysis of the transactions of Canary Cola Inc. yields the following information: service revenu...
A: Formula: Net Income = Service Revenue – Expenses Net Income = Service Revenue – (Supplies Expense + ...
Q: Using DuPont Analysis to Compare Corporate Performance
A: 1. Dupont Analysis is an extended analysis of return on equity. It contains formula of net profit ma...
Q: 1. Answer the following questions related to the source document on the next page. A. What business ...
A: The original document containing the specifics of a commercial transaction is referred to as a sourc...
Q: monthly cost of operatives’ wages i
A: Cost of wages = Monthly Output*Cost per unit = 5040*8 ...
Q: Recommend three controls of an accounting system
A: An accounting system is a set of interconnected accounting procedures and controls. The goal of an a...
Q: e following cost and activity observations for Leno Enterprises' utilities, use the high-low method ...
A: The high-low method compares the cost and the activity level of the highest activity level and low...
Q: Josey Company entered into a contract to acquire a new machine for its factory. The machine, which h...
A: Initial cost of Machine: In calculating the initial cost of an asset, all of the elements that may b...
Q: A company had excess funds at the beginning of 2021. The investment committee decided to purchase ma...
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: Which of the following is not a benefit of budgeting It is a basis for performance evaluation.
A: A budget is a forecast of the financial position and the results of the company for the period of on...
Q: Wages paid to a labourer who is engaged in production activities should be classified as: a) direct...
A: Cost refers to the amount incurred in return for goods or services.
Q: Why is there a need for a change in the structure of the International Accounting Standards Committe...
A: IAS Committee (IASC) was set up in 1973 for bringing harmonization to the accounting process around ...
Q: LSE-5 (Operating Lease) On January 1, 2017, Pym Co. leases an armored suit it constructed at a cost ...
A: In this question, we will, 1. Calculate the annual payments Pym requires for the lease. 2. Classify ...
Q: Dow Deep Mining Co acquired mineral rights for $56,000,000. The mineral deposit is estimated at 70,0...
A: Formula: Depletion Rate per ton = Cost of Mining Rights/ Estimated mineral deposit in tons
Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000 and a $3...
A: Depreciation represents the reduction in the value of an asset over a useful life of the asset. Unde...
Q: ness document is it?
A: voucher is a backup documents which shows business transactions.
Q: . Slip Heel Ltd manufactures two types of shoes in its factory. A typical monthly budget is as foll...
A: In this question, we have to compute the monthly cost of operative wages in the factory.
Q: Bramble Company purchased equipment for $15600 on December 1. It is estimated that annual depreciati...
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: On June 30, 2015, the balance sheet of Western Marketing, a partnership, is summarized as follows: S...
A: A partnership is a legally binding contract between two or more persons to run and manage a business...
Q: Please help me
A:
Q: An analysis of the transactions of Cavernous Homes Inc. yields the following totals at December 31, ...
A: Cavernous Homes Inc. Balance Sheet December'31, 2019 Assets Current Assets Cash $ ...
Q: first two years, the company drove the company truck $7.000 and 62.000 miles, respectively, te deliv...
A: Solution: Under activity based depreciation expenses depreciable amount is deteriorated according to...
1) A corporation may choose to use debt financing because
a) it has an income tax advantage.
b) it typically has a higher cost of capital than equity.
c) it carries voting rights.
d) it reduces financial leverage.
2. The effective rate of interest on bonds
a) is the interest rate specified on the bond certificate.
b) is the market rate of interest when the bonds are actually sold.
c) is the market rate of interest on the date of public announcement.
d) none of these choices.
Step by step
Solved in 3 steps
- (c) Jim Thome has prepared the following list of statements about bonds. 1. Bonds are a form of interest-bearing notes payable. 2. When seeking long-term financing, an advantage of issuing bonds over issuing common stock is that stockholder control is not affected. 3. When seeking long-term financing, an advantage of issuing common stock over issuing bonds is that tax savings result. 4. Secured bonds have specific assets of the issuer pledged as collateral for the bonds.(b) Jim Thome has prepared the following list of statements about bonds. 1. Bonds are a form of interest-bearing notes payable. 2. When seeking long-term financing, an advantage of issuing bonds over issuing common stock is that stockholder control is not affected. 3. When seeking long-term financing, an advantage of issuing common stock over issuing bonds is that tax savings result. 4. Secured bonds have specific assets of the issuer pledged as collateral for the bonds. 5. Secured bonds are also known as debenture bonds. 6. Bonds that mature in installments are called term bonds. 7. A conversion feature may be added to bonds to make them more attractive to bond buyers. 8. The rate used to determine the amount of cash interest the borrower pays is called the stated rate. 9. Bond prices are usually quoted as a percentage of the face value of the bond. 10. The present value of a bond is the value at which it should sell in the marketplace. Instructions Identify each statement as true or…Identify the following as either an advantage or a disadvantage of bond financing for a company. a. Bonds do not affect owner control. b. A company earns a lower return with borrowed funds than it pays in interest. c. A company earns a higher return with borrowed funds than it pays in interest. d. Bonds require payment of periodic interest. e. Interest on bonds is tax deductible. f. Bonds require payment of par value at maturity.
- Which of the following statements concerning bonds is FALSE? A. Bonds can be issued either at par, premium, or discount. B. Bonds interest is tax deductible. C. Bondholders have voting rights. D. Bonds are usually considered to be a long term liability.If bonds payable are not callable, the issuing corporation a.can exchange them for common stock b.can repurchase them in the open market c.is more likely to repurchase them if the interest rates increase d.must get special permission from the SEC to repurchase themWhich of the following are differences between a bond and a common stock? (Select all that apply.) A. A corporation has to pay all bondholders before paying stockholders. B. A bond is a claim on the earnings and assets of a corporation, whereas a common stock promises to make periodic payments for a specified period of time. C. A corporation has to pay all stockholders before paying bondholders. D. A bond is a debt instrument that entitles the owner to receive periodic amounts of money until its maturity date, whereas a common stock represents a share of ownership of the institution that has issued the stock.
- Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company. Interest on bonds is tax deductible.Which of the following is a disadvantage to a corporation issuing bonds? Group of answer choices A)The required interest payment must be met each period. B)The liquid nature of the bonds makes them attractive to investors who may not want to hold them to maturity. c)The large principal payment due at maturity. d)Both the first and third answers above are both disadvantages. e)The first, second and third answers above are all disadvantages.True or False 1. The holder of the bond indenture is receiving interest income on a regular basis. 2. Loan from a bank is interest-bearing. 3. When a corporation raises capital through equity financing, it results to an increase in its equity. 4.
- Most bonds: Select the correct response: give bondholders a voice in the affairs of the corporation are interest-bearing obligations of governments or corporations are floating-rate securities are money market securitiesTo what extent does the company’s bond issuance policies support or hinder their strategies? For example, if the company is attempting to fund operating expenses, refinance old debt, or change its capital structure, are they issuing sufficient bonds to achieve these goals? Be sure to substantiate claims.2. Bond A and Bond B have identical characteristics except that Bond A has a higher interest rate. Which bond has a higher credit risk? 3. Bond A and Bond B are identical except Bond B has a longer term. Therefore, we expect Bond _____ to pay a higher rate of interest. 4.Bonds issued by state and local governments are called _____ bonds. Bonds issued by financially shaky corporations are called _____ bonds. Of these two, which type of bond usually pays a relatively higher interest rate?
