Answer:
Assets = Liabilities + Owners' Equity
Explanation:
The reason is that it is the basic accounting equation that forms the basics of the double entry. It is main equation from which all the Gernally Accepted Accounting Principles and International Accounting Standards had originated. This helps us to understand a big picture of an entity either it is by record keeping, financial statement analysis, uncovering frauds, provision of system of check and balance and many more. This is the reason why the basic accounting equation has immense importance in Sarbanes Oxley Act, Companies Act, etc.
Answer:
Directive PMO
Explanation:
A project management office(PMO) refers to creation of groups and departments within an organization so as to define standards and to ensure those standards are met.
In a directive form of project management office, it completely takes over projects and allots resources, and assigns project managers to projects.
In such a form of Project management office, the project managers are supposed to report to such directive offices.
In the given case, since Fran reports to such a PMO form which assumes control of the projects and manages the project, this is a directive form of project management.
The cost of goods sold for the year is $500.
Since FIFO method is to be used, the cost of goods sold for the year should be the cost of its first purchase regardless of when the product is actually bought. Thus, the cost of goods sold for the year is $500 ($500 × 1).
How to calculate Open-to-buy:
Open-to-buy = planned purchases - (orders received + merchandise ordered)
Planned purchases = $2,500
Received orders = $1,200
Ordered merchandise = $700
Open-to-buy = $2,500 - ($1,200 + $700)
Open-to-buy = $2,500 - $1,900
Open-to-buy = $600
Answer:
Market estimate of the one year treasury rate one year from now is 11.76%
Explanation:
The formula for pure expectations theory used in forecasting future interest rate is given below:
One year interest rate=(1+r2)^n+1/(1+r1)^n-1
r2 is the forecast interest rate in two years which is 8.7600%
r1 is the forecast interest rate in year 1 which i 5.8400%
n is one year from now
one year interest rate=(1+8.7600%)^2/(1+5.8400%)^1-1
one year interest rate=(1+0.087600)^2/(1+0.058400)^1-1
=1.087600^2/(1.058400)^1-1
=1.18287376
/1.058400-1
=1.117605593-1
=0.117605593
=11.76%
