Answer: expand
Explanation:
Here's the complete question:
Clemens Inc. is considering a $100 million investment in a new line of soft drinks. However, $100 million is a huge investment for Clemens; if things turn bad, it could wipe out the company. A few senior managers have suggested a smaller investment of $20 million to see if the market is as strong as they hope it is. If demand is strong and the opportunity is still available, Clemens will increase its investment at a later date. This example describes a real option to:
a. abandon
b. expand
An expansion option is an option that gives the company that bought a real option, the right to take part in certain actions, and to also expand its operations in the future even with little or no cost. In real estate, this option gives opportunities to the tenants to increase the space of the premises where they live.
This is the idea portrayed in the question when few senior managers suggested a smaller investment of $20 million should be made at first and when the demand is strong and the opportunity is still available, Clemens will increase its investment at a later date.
Why Does Marketing Matter?
Answer:
Marketing matters because it educates, builds awareness and establishes initial connections.
Explanation:
Stock market prices plunged tremendously in 1929, contributing to the Great Depression as the AD curve shifted greatly to the left. The ordinary AS/AD model predicts that a falling short-run aggregate supply would bring deflation and move the economy back to potential output. Which of the following describes the impact of dynamic feedback effects on this return to potential output?
a. expectations that stock prices would rise back again would cause the AD curve to shift left.
b. expectations that stock prices would fall further could shift the AD curve further to the left.
c. expectations that stock prices will fall further would cause the AD curve to shift to the right.
d. falling stock prices would make people feel poorer which would cause the AD curve to shift to the right.
Answer:
b. expectations that stock prices would fall further could shift the AD curve further to the left.
Explanation:
The AS/ AD model stated the aggregate supply and aggregate demand model which stated level of prices and its output by maintaining the relation between the supply and demand
As in the given situation, it is mentioned that the aggregate supply of short run decline and that brings deflation and it moves the economy back to the output i.e potential. It impacts the expectation of stock prices would result in declines and further it shifted the AD curve to the left side
Hence, the correct option is B.
An investor buys a 10-year, 7% coupon bond for $1,050, holds it for 1 year, and then sells it for $1,040. What was the investor's rate of return?
Answer:
The answer is 5.71%
Explanation:
Solution
Given that
Coupon rate = 7%
Bond = $1050
Sale of the bond = $1040
n = 10 years, n = 1 year
Now we find the investor's rate of return
Thus
Coupon payment = 7%* 1000
=70
1050 = 70/(1+r) + $1,040/(1+r)
r= 5.71%
Therefore the rate of return of the investor is 5.71%
or
Rate of return = (P1-P0+ Interest ) /P0
= (1040 -1050 + 70 )/1050
= .0571 or 5.71%
When the end-of-period spreadsheet is complete, the adjustment columns should have:_________. a) total debits greater than total credits if a net income was earned b) total debits greater than total credits if a net loss was incurred c) total debits are equal to total credits d) total credits greater than total debits if a net income was earned
Answer:
C. Total debits are equal to total credits
Explanation:
When the end-of-period spreadsheet is complete, the adjustment columns should have:
Total debits equal to total credits.
When this happens, the trial balance is considered to be balanced.
If revenues are greater than expenses, then income statement will give a credit balance. If expenses are bigger than revenues, your income statement will show a debit balance.
addresses unknown parameters in the real world that parallel descriptive measures of very large population? A. The sample mean / B. Statistic Inference C. The central Limit Theorem
Answer:
The answer is "Option B".
Explanation:
Inferential statistics was its process through which data collection is used to conclude the property or even an implicit wave function. Its analysis infers these same features of inhabitants. Its purpose is to use statistical strategies to determine important assumptions regarding sample size, and other choices were wrong which can be defined as follows:
In option A, it defines the average of the given values, that's why it is wrong.In option C, It is used to0 describes a number of samples that's why it is wrong.Explain how the Federal Reserve Board can increase or decrease the money supply using each of the following tools: reserve requirements, open-market activities, and discount rates
Answer:
Reserve requirements – Reserve requirement increases to decrease the money supply or vice versa.
Open-market activities – the Fed sell the securities to reduce money supply or purchase it to increase the money supply.
Discount rates – Decrease the discount rate to increase the money supply or vice versa.
Explanation:
The Federal Reserve increases or decreases the money supply by using various tools. So in the case of the reserve requirement, the bank increases the percentage of reserve requirement if the Fed wants to decrease the money supply and to increase the money supply it reduces the reserve requirements. In the case of open market operations, the Fed sells securities and bonds in the market in order to reduce the supply of money or to decrease the supply of money it buys the securities from the market.
In the case of a discount rate, the Fed reduces the discount rate to increase the money supply because reducing the discount rate will induce the banks to give more loans. But to decrease the money supply, the Fed increases the discount rate because an increase in the discount rate reduces the ability of banks to give loans.
Initially, Eleanor earns a salary of $200 per year and Darnell earns a salary of $100 per year. Eleanor lends Darnell $50 for one year at an annual interest rate of 16% with the expectation that the rate of inflation will be 5% during the one-year life of the loan. At the end of the year, Darnell makes good on the loan by paying Eleanor $58. Consider how the loan repayment affects Eleanor and Darnell under the following scenarios. Scenario 1: Suppose all prices and salaries rise by 5% (as expected) over the course of the year. In the following table, find Eleanor's and Darnell's new salaries after the 5% increase, and then calculate the $58 payment as a percentage of their new salaries. (Hint: Remember that Eleanor's salary is her income from work and that it does not include the loan payment from Darnell.) Value of Eleanor's new salary after one year The $58 payment as a percentage of Eleanor's new salary Value of Darnell's new salary after one year The $58 payment as a percentage of Darnell's new salary Scenario 2: Consider an unanticipated increase in the rate of inflation. The rise in prices and salaries turns out to be 14% over the course of the year rather than 5%. In the following table, find Eleanor's and Darnell's new salaries after the 14% increase, and then calculate the $58 payment as a percentage of their new salaries. Value of Eleanor's new salary after one year The $58 payment as a percentage of Eleanor's new salary Value of Darnell's new salary after one year The $58 payment as a percentage of Darnell's new salary An unanticipated increase in the rate of inflation benefits______ and harms_____ .
Answer:
Scenario 1: Suppose all prices and salaries rise by 5% (as expected) over the course of the year. In the following table, find Eleanor's and Darnell's new salaries after the 5% increase, and then calculate the $58 payment as a percentage of their new salaries.
Eleanor's new salary = $200 x 1.05 = $210
Darnell's new salary = $100 x 1.05 = $105
the $58 payment represents:
$58 / $210 = 27.62% of Eleanor's new salary
$58 / $105 = 55.24% of Darnell's new salary
Scenario 2: Consider an unanticipated increase in the rate of inflation. The rise in prices and salaries turns out to be 14% over the course of the year rather than 5%. In the following table, find Eleanor's and Darnell's new salaries after the 14% increase, and then calculate the $58 payment as a percentage of their new salaries.
Eleanor's new salary = $200 x 1.14 = $228
Darnell's new salary = $100 x 1.14 = $114
the $58 payment represents:
$58 / $228 = 25.44% of Eleanor's new salary
$58 / $114 = 50.88% of Darnell's new salary
An unanticipated increase in the rate of inflation benefits Darnell and harms Eleanor.
We argued that when the economic growth in the US is greater than the (economic) growth rates of our trading partners, the trade deficit in the US should get larger, all else constant.
a. True
b. False
Answer:
The correct answer is the option B: False.
Explanation:
To begin with, given the fact that the economic growth of the United States is greater than the economic growth rates of its trading partners then the trade deficit in the US should get smaller, all else constant due to the fact that the economy is growing at a level that is higher than does of the partners and therefore that when that happens the country will be in a better position and the production of it will increase as expected and that will impact positively in the deficit by reducing it to small amounts.
An estimate of the money and paperwork spent complying with environmental regulations could be compared to the advantages of cleaning up pollution. This method of determining the value of the environment is known as __________.
Answer:
Contingent valuation.
Explanation:
An estimate of the money and paperwork spent complying with environmental regulations could be compared to the advantages of cleaning up pollution. This method of determining the value of the environment is known as contingent valuation.
Contingent valuation can be defined as a survey based method which is typically used to determine the economic value of a non-market resource such as the impact of pollution and preservation of the environment.
This ultimately implies that, contingent valuation is used for the valuation of resources and goods that are not being traded in marketplaces. Therefore, it is mostly related to the environmental and natural resources found around us on planet Earth.
Generally, this environmental and natural resources usually do not have a market price but various individuals derive utility or satisfaction from them.
Hence, the contingent valuation method is aimed at seeking people's opinions by asking questions on how much money they're willing to pay or receive for the preservation of an environmental resource.
For instance, many people derive pleasure from visiting tourist attractions sites such as zoo, recreational facilities, parks etc and would be willing to pay for this natural resources.
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, frizzles, and mookies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies increases by 5%, the quantity of frizzles sold decreases by 4% and the quantity of mookies sold increases by 5%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following table by computing the cross-price elasticity between guppy gummies and frizzles, and then between guppy gummies and mookies. In the second column, determine if guppy gummies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with guppy gummies. Relative to Guppy Gummies Recommend Marketing with Guppy Gummies Cross-Price Elasticity of Demand Complement or Substitute Frizzles Mookies
Answer:
Cross Price Elasticity of Demand is a measure of the complimentary or substitutional nature of two goods. It enables one to know if goods go together or are replacements for each other.
When the Cross Price Elasticity is Positive then both of the goods are Substitutes.
This is because when the price of one increased, some people abandoned it and went to the other one which then increased the demand of the latter.
If the Cross Price Elasticity is negative then both the goods are compliments because when the price of one increased, people decided to stop buying it and because the other good is a compliment (goes together) people didn't buy the latter either thereby reducing its demand.
The formula for Cross Price Elasticity is,
= % Change in Quantity Demanded of Good A / % Change in price of Good B
Guppy Gummies and Frizzles.
= -4%/ 5%
= - 0.8%
Cross Price Elasticity is Negative so they are Compliments.
It IS RECOMMENDED to market Frizzles with Guppy Gummies.
Guppy gummies and Mookies
= 5% / 5%
= 1
Cross Price Elasticity is positive so these are Substitutes.
It is therefore NOT recommended to market Mookies with Guppy Gummies.
Examine the equal opportunity laws of another country, not the United States. Are the laws in other countries as much a concern for HRM specialists as they are in the United States?
Answer:
The equal opportunity laws of another country, not the United States is discussed below in details.
Explanation:
An equal opportunity system is a certificate that declares what measures a company takes to eliminate and stop discrimination in the workplace.
The United Kingdom employment equality law is an organization of law that legislates against prejudice-based activities in the workplace.
The prime legislation is the Equality Act 2010, which condemns discrimination in passage to education, government services, private services, and goods, or assumptions in addition to employment.
Trade Mart has recently had lackluster sales. The rate of inventory turnover has? dropped, and the merchandise is gathering dust. At the same time, competition has forced AquariumAquarium's suppliers to lower the prices that Aquarium will pay when it replaces its inventory. It is now December 31, 2016, and the current replacement cost Aquarium's ending inventory is $75,000 below what Aquarium actually paid for the goods, which was $200,000.
Before any adjustments at the end of the? period, the Cost of Goods Sold account has a balance of $$820,000.
Requirements:
a. What accounting action should Aquarium take in this situation?
b. Give any journal entry required.
c. At what amount should Aquarium report Inventory on the balance? sheet?
d. At what amount should the company report Cost of Goods Sold on the income? statement?
e. Discuss the accounting principle or concept that is most relevant to this situation.
Answer:
a. What accounting action should Aquarium take in this situation?
the balance of inventory account should decrease to match the replacement cost.
b. Give any journal entry required.
Dr Cost of goods sold 75,000
Cr Inventory 75,000
c. At what amount should Aquarium report Inventory on the balance? sheet?
Inventory = $200,000 - $75,000 = $125,000
d. At what amount should the company report Cost of Goods Sold on the income statement?
Cost of goods sold = $820,000 + $75,000 = $895,000
e. Discuss the accounting principle or concept that is most relevant to this situation.
US GAAP states that companies must use the lower of cost or market rule, which means that inventory must be recognized at the lowest cost either original purchase cost or market value.
During a Value-Added Flow Analysis, the team studied a process step where they checked the customer's credit. What is the best label for this step?
Answer:
Non-Value-Adding but required.
Explanation:
A Value-Added flow analysis is a graphical visualization tool that is used for identifying non-essential activities or steps within a process. It basically, allows individuals or team to analyze, identify and separate value-adding activities from non-value-adding activities or steps in an organization. This simply means that, it avails an organization or business the ability to separate activities that add value for the user from the activities that are non-value-adding.
The value-adding activities are the steps that adds value to an organization's product or project while the non-value-adding activities are those steps which do not add any value to the organization's product.
In this scenario, during a value-added flow analysis, the team studied a process step where they checked the customer's credit. The best label for this step is Non-value-adding but required.
The process of checking a customer's credit is a necessary task or a required step but in the real sense of lean, it is considered as a non-value-adding activity. This is simply because, it is required to check the customer's credit in order to update the balance sheet and to know the amount that is granted to these customers.
However, it does not add any value to the organization.
During the month, merchandise is sold for $80,500 cash and for $119,000 on account. The cost of merchandise sold is $101,500. What is the amount of revenue? a.$199,500 b.$80,500 c.$119,000 d.$101,500
Answer:
Value of revenue = $98,000
Explanation:
Here, we are interested in calculating the revenue.
Firstly, we add the sales on cash with the sales on account.
Mathematically that would be;
80,500 + 119,000 = $199,500
The value of the revenue = Amount in sales - cost of merchandise = 199,500-101,500 = $98,000
Sheboygan Co. purchased a new vehicle at a cost of $42,000 on July 1. The vehicle is estimated to have a useful life of 6 years and a salvage value of $3,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the vehicle during the first year ended December 31?
Answer:
The depreciation at the end of first year = $3250
Explanation:
The cost of a new vehicle on July 1st = $42000
The estimated useful life of vehicle = 6 years
The salvage value of vehicle = $3000
It is given that the company uses the straight-line method for depreciation so we have to calculate the depreciation by subtracting the salvage value from its cost and dividing by years.
Depreciation = ($42000 – $3000) / 6 = $6500
So annual depreciation is $6500.
Therefore depreciation at the end of the first yThe depreciation at the end of first year = $3250ear that is for 6 months = $3250
The asset, liabilities, and equities of Drought Design Studio have the following balances at December 31, 2018. The retained earnings was $35,000 at the beginning of the year. At year end, common stock was $17,000 and dividends were $61,000.
Notes Payable $14,000
Rent Expense 23,000
Cash 3,200
Office Supplies 5,100
Salaries Expense 65,000
Property Tax Expense 2,200
Office Furniture $48,400
Utilities Expense 7,200
Accounts Payable 3,600
Service Revenue 154,600
Accounts Receivable 9,300
Miscellaneous Expense 3,800
Required:
Prepare the income statement for Drought Design Studio for the year ending December 31, 2018.
Answer:
Drought Design Studio
Income statement for the year ending December 31, 2018.
Revenue
Service Revenue $154,600
Expenses
Rent Expense $23,000
Salary Expense $65,000
Property Tax Expense $2,200
Utilities Expenses $7,200
Miscellaneous Expenses $3,800
Less: Total Expenses $101,200
Net Income $53,400
On June 1, Carla Vista Co. Ltd. borrows $108,000 from Acme Bank on a 6-month, $108,000, 4% note. The note matures on December 1.
1. Prepare the entry on June 1.
2. Prepare the adjusting entry on June 30.
3. Prepare the entry at maturity (December 10)
4. What was the total fancing (interest expence)?
Answer:
a) Journal entry
Date Account and explanation Debit Credit
June 1 Cash $108,000
Notes payable $108,000
b) Adjusting entry
Date Account and explanation Debit Credit
June 30 Interest expense $360
(108,000*4%*1/12)
Interest payable $360
c) Journal entry
Date Account and explanation Debit Credit
Dec 10 Notes payable $108,000
Interest payable (360*6) $2,160
Cash $110,160
d) Total (interest expenses)
Interest payable = $360 * 6
= $2160
Often in business the greater the risk, the __________.
Answer:
greater the potential reward
Explanation:
A progressive tax is one which
Answer:
A progressive tax is one which charges more tax for those with higher income.
The amount of tax paid depends on the general income of the person.
You will pay $7,000 now to purchase a perpetuity which will pay you and your heirs $340 at the end of each year, forever. What is the rate of return on this perpetuity?
Answer:
4.86%
Explanation:
Interest rate of a perpetuity = amount / present value
$340 / $7,000 = 0.048571 = 4.86%
I hope my answer helps you
Answer:
4.86%
Explanation:
Interest rate of a perpetuity = amount / present value
$340 / $7,000 = 0.048571 = 4.86%
The potential sources of noise and bias in accounting data are: Group of answer choices Rigidity in accounting rules Random forecast errors Systematic reporting choices made by corporate manager to achieve specific objectives All of the above None of the above
Answer: All of the above
Explanation:
Accounting data can have bias or data that should not necessarily be included due to a couple of factors.
Accounting rules are too rigid because when they are applied, the Accountants will ibe unable to remove the noise and entries made by Management without removing a substantial part of Accounting records. There is need for more flexible rules so that Accountants can restrict how easily Management can introduce bias.
Accounting works a lot of forecasted information and it is impossible to make completely accurate forecasts as events can simply happen out of nowhere and disrupt operations. Also there is Human error in the forecasts so this can lead to noise and bias.
Finally, Accounting bias and noise can be linked to pressure from Corporate management to report data in a certain way for a myriad of reasons such as to improve management benefits if they are performance related, to avoid taxes, and to avoid Government regulations amongst others.
Gold standard required countries to A. keep the supply of foreign exchange less than their domestic money supply. B. restrict the demand for foreign goods. C. keep the supply of their domestic money constant. D. keep the supply of their domestic money fixed in proportion to their gold holdings.
Answer:
D.) Keep the supply of there domestic money fixed in proportion to their gold holdings.
Explanation:
The Gold Standard was a monetary system under which countries fixed the value of their money in terms of a specified amount of gold. With the gold standard, countries agreed to convert the paper money into a fixed amount of gold.
Hope this helps you out! : )
A corporation issued 5,600 shares of $10 par value common stock in exchange for some land with a market value of $82,000. The entry to record this exchange is:
Answer:
The entry for the exchange is therefore;
Dr Land $82,000
Cr common stock $56,000
Cr Paid in capital in excess of par value common stock $26,000
Explanation:
The land was gotten at a price of $82,000(its fair value)
Common stock issue = 5,600 shares x $10 par value common stock
= $56,000
Paid in capital in excess of par value common stock = $82,000 - $56,000
=$26,000
The entry for the exchange is therefore;
Dr Land $82,000
Cr common stock $56,000
Cr Paid in capital in excess of par value common stock $26,000
The specific identification method (select all that apply): matches each unit of inventory with its actual cost is not an acceptable method of accounting would be beneficial to a company that makes inexpensive products with high sales volume would be beneficial to a company that makes fine jewelry
Answer:
The specific identification methoda) matches each unit of inventory with its actual cost
d) would be beneficial to a company that makes fine jewelry
Explanation:
The specific identification inventory valuation method is one of the inventory valuation method allowed by U.S. GAAP. The other allowed methods are weighted average; and first in, first out (FIFO). The specific identification method identifies every item kept in inventory and its price and tracks it from purchase to resale. Some types of businesses that use the specific identification method are jewelry companies and stores, car dealerships, art galleries, and furniture stores, who can easily identify each item and track the cost and price respectively.
The specific identification method of costing inventories is used when finding out the cost of the ending inventory.
Correct option is A and D.
The specific identification method is "matches each unit of inventory with its actual cost and would be beneficial to a company that makes fine jewelry."
One of the inventory methods permitted by US GAAP is the particular identification inventory valuation method. Weighted average and first in, first out are two alternative strategies that can be used. Every item in inventory, as well as its price, is identified and tracked using this system, from purchase through resale.
Jewelry companies and stores, auto dealerships, art galleries, and furniture stores are just a few examples of enterprises that use the particular identification method to quickly identify each item and track the cost and pricing.
To know more about specific identification method, refer to the link:
https://brainly.com/question/25056275
Scranton, Inc. reports net income of $260,000 for the year ended December 31. It also reports $100,700 depreciation expense and a $6,500 gain on the sale of equipment. Its comparative balance sheet reveals a $41,500 decrease in accounts receivable, a $18,750 increase in accounts payable, and a $14,500 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.
Answer:
$399,950
Explanation:
The computation of cash provided (used) in operating activities using the indirect method is shown below:-
Cash flow from operating activities
Net income reported $260,000
Add: depreciation expenses $100,700
Less: gain on sale of equipment -$6,500
Add: decrease in accounts receivables $41,500
Add: increase in accounts payable $18,750
Less: decrease in wages payable -$14,500
Cash flow from operating activities $399,950
We simply added the cash inflows and deduct the cash outflows to reach out the operating activities
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 74,000 shares authorized, issued, and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 226,000 Retained earnings 880,000 Total stockholders’ equity $ 1,846,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 5,200 shares of its own common stock at $27 per share on October 11. Sold 1,050 treasury shares on November 1 for $33 cash per share. Sold all remaining treasury shares on November 25 for $22 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.
Answer:
1, Journal entries
Date Account and explanation Debi$ Credit$
Treasury stock (5200*27) 140,400
Cash 140,400
(To record purchase treasury stock)
Cash (1,050*33) 34,650
Paid in capital from sale of treasury stock 6,300
Treasury stock (1,050*27) 28,350
(To record sale of treasury stock)
Cash (4,150*22) 91,300
Paid in capital from sale of 6,300
treasury stock
Retained earnings 14,450
Treasury stock (4,150*27) 112,050
(To record sale of treasury stock)
2. Revised equity section
Contributed capital
Common Stock 740,000
Paid in capital in excess of 226,000
par value-Common Stock
Total paid in capital 966,000
Retained earnings 880,000
Total 1,846,000
Less: Treasury stock (140,400)
Total Stockholder's equity $1,705,600
On January 1, 2013, an investor purchases 25,000 common shares of an investee at $9 (cash) per share. The shares represent 20% ownership in the investee. The investee shares are not considered "marketable" because they do not trade on an active exchange. On January 1, 2013, the book value of the investee's assets and liabilities equals $600,000 and $150,000, respectively. On that date, the appraised fair values of the investee's identifiable net assets approximated the recorded book values. During the year ended December 31, 2013, the investee company reported net income equal to $22,500 and dividends equal to $12,000.
Noncontrolling investment accounting (price equals book value)
Assume the investor does not exert significant influence over the investee. Determine the balance in the "Investment in Investee" account at December 31, 2013.
Explanation:
Bring ur as over here and ill use my dic
If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he need to fund his prizes
Answer:
The answer is $3,214,285.71
Explanation:
Price of each award is $45,000
And there are 5
Therefore, we have 5 x $45,000
=$225,000.
So, $225,000 is the future value.
Rate of return(r) in 7% and it is being assumed that it is forever.
So, so how much will be needed to fund his prizes(present value)?:
PV = FV/r
= $225,000/0.07
=$3,214,285.71
What special asset does Heartland Telecom's acquisition of Surety Wireless identify? The acquisition identifies the asset goodwill . How should Heartland Telecom account for this asset after acquiring Surety Wireless? Explain in detail. Heartland Telecom should measure the ▼ of this asset each year. If this asset has increased in value, Heartland should ▼ . If the value of the asset has decreased, Heartland should
Answer: 1. Goodwill
2. a. Record no entry in the books
b. Record a loss in the books
Explanation:
1. The Special asset created by Heartland Telecom's acquisition of Surety Wireless is Goodwill.
Goodwill is the difference between what the company was worth and what it was purchased for if the purchase price was higher than the worth (market value).
2. a. Goodwill should be accounted for by recoding it in the Long term Assets under Intangible Assets in the balance sheet. It should not be amotrized. If Goodwill increases, there should be no recording this gain on the books.
b. If the value of the asset has decreased, Heartland should record a loss in the books to represent the loss on this account.
Challenges that has made some of them go into liquidation with takeovers all over the country. Examine the processes for the acquisition of licence by Banks and other financial institutions in Ghana establishing the role of the regulator in this industry. In your opinion, do we still need a regulator if the banks are collapsing anyway?
Answer:
The given statement is true, that can be defined as follows:
Explanation:
They continue always to have a supervisor unless the financial are all, which collapses to regulation is criticized in constructing practices and regulations for the divestiture lock, so if the international banks repatriate throughout a nation, which results in monetary uncertainty in the world, they take the required measures to cope with both the problems faced by the moon inside the economic system.
The financial and monetary system of a nation is controlled and corrective actions are taken to resolve moon-facing financial problems through the liquidation of banks. Its national economy is collapsing with just a regulator, but any money problems emerge in a difficult area unit to control.