The two primary sources of capital for a firm are debt and equity.
What is debt and equity?
Debt is a source of capital. A form of debt are bonds. A bond is a debt instrument used by businesses to raise capital needed for business operations. Bondholders earn interest on the amount invested and at the maturity of the bond, they are paid back the amount invested.
Capital can also be raised by issuing shares. Shares give ownership rights to its holders.
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If the company paid $20,100 of its advertising expense during the current year, what amount is owed for advertising at the end of the year
Answer:
Advertising expense 6,600. Rent expense 11,600. What is the amount of total assets to be reported on the balance sheet at the end of the year? $106,800.
Explanation:
Six years ago, Hendershot Stables paid $84,000 in cash for equipment. Last year, the company spent $7,600 on equipment upgrades. The company no longer uses this equipment and has received a cash offer of $39,600 from a buyer. The current book value of the equipment, including all updates, is $32,200. If the company decides to keep the equipment and use it for a new project, what value, if any, should the company assign to the equipment
The value that should be assigned by the company to the equipment is $39,600.
What is opportunity cost?Opportunity cost can be described as the potential benefits that is missed out on by a company when it chooses one option over another.
As the company is thinking of using the equipment for a new project, this implies that the opportunity cost of the equipment for the project will be $39,600 offered by a buyer.
Therefore, the value that should be assigned by the company to the equipment is $39,600.
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The degree to which local regulations favor local workers and suppliers is an example of the environmental factor termed ________.
The degree to which local regulations favor local workers and suppliers is an example of legal/political security.
What is political security?political security is the protection of human rights and well-being of all people.
It is kind of protection received by local workers and suppliers and this gives freedom to the citizens.
Therefore, political security gives room for the citizens to exercise their right, and protect the right of all workers and individuals in the country.
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At the end of World War II many European countries were rebuilding and so were eager to buy capital goods and had rising incomes. We would expect that the rebuilding increased aggregate demand in
We would expect that the rebuilding at the end of World War II in many European countries increased aggregate demand for capital goods in a. Both the US and Europe.
What is aggregate demand?Aggregate demand refers to the total demand for goods and services within an economy.
Because of the Marshall Plan initiated by the United States for rebuilding Europe after the Second World War, aggregate demand increased in both the United States and Europe.
Answer Options:a. Both the US and Europe
b. The US, but not Europe
c. Europe, but not the US
d. Neither the US nor Europe
Thus, the rebuilding at the end of World War II in many European countries increased aggregate demand for capital goods in a. Both the US and Europe.
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