Answer:
Operating lease
Explanation:
An operating lease is basically a lease contract that allows the lessee to use the assets but it doesn't transfer any ownership rights. It is like renting a house, you can use it as long as pay the rent, but the house isn't yours. Operating leases are not included in the balance sheet, while financial leases are.
In this case, Star Company may use the copy machines but it must return them in three years.
Answer:
Supplies Expense is debited for $40
Cash is credited for $89
Delivery Expense is debited for $49
Explanation:
Petty cash is a small amount of fund which is kept in the business for day to day expenses. Cash is issued from this fund for daily small expense which is not possible to withdraw from the bank by check.
The Journal Entry will be as follow
Dr. Cr.
Supplies $40
Delivery expense $49
Cash ( $100-$11) $89
Cash will be credited against all these expenses.
Answer:
The answer is: Leslie should fund projects A and C
Explanation:
In order to determine if a project should be accepted, the first thing Leslie has to do is determine the projects´ Net Present Value (NPV). If the NPV is 0 or more, then the projects could be funded.
The formula to calculate NPV is:
NPV = ∑{p/( 1+r)t} - C
- p = net cash flows from the period
- r = discount rate (8.5% in this case)
- t = number of periods
- c = capital invested
<u>Project A:</u>
p = $4000;$4000;$4000
r = 8.5%
t = 3
c = $7,500
The NPV for Project A is $2,716.09
<u>Project B:</u>
p = $3000;$4000;$3000
r = 8.5%
t = 3
c = $8,000
The NPV for Project B is $511.52
<u>Project C:</u>
p = $0;$2,500
r = 8.5%
t = 2
c = $2,000
The NPV for Project C is $123.64
Once you calculate the NPVs from projects A,B and C you must determine how to distribute the $15,000 available. All three projects have positive NPVs, so they are profitable. But you can´t fund projects A and B since their combined costs ($7,500 + $8,000 = $15,500) exceeds $15,000. Leslie should invest in project A since its NPV is higher ($2,716.09 ˃ $511.52). She should also fund project C since its NPV is positive ($123.64) and the capital needed is smaller (only $2,000).
Answer:
The statement is correct
Explanation:
Tariffs are taxes imposed on imports, and more rarely, on exports, in order to place a trade restriction on foreign goods, and promote the production, and consumption of domestic goods.
If domestic producers are less efficient than foreign producers, and the tariff makes the foreign goods more expensive, consumers will have to pay more for the domestic goods.
Tariffs only benefit those who are directly involved with the production of the goods being targeted, while consumers and society at large suffer because of the higher prices.
