For investors, <u>credit rating agencies </u>provide independent, easy-to-use measurements of relative credit risk.
A credit rating agency refers to a company that assigns credit ratings. A <em>credit rating agency</em> also serves as a basis for proper risk and return.
A credit rating agency is important as it helps in rating the ability of a debtor to pay back its credit. Therefore, for investors, credit rating agencies provide independent, easy-to-use measurements of relative credit risk.
In conclusion, credit rating agencies also rate the creditworthiness of issuers of debt instruments.
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Answer:
Explanation:
The applicable accounting standard IAS 2 (Inventory) requires that inventory be carried at the lower of cost or net realizable value.
Initial recognition of inventory is at cost. In other words, where the cost is lower than the net realizable value, inventory is written down to the net realizable value.
As such, when inventory declines in value below original (historical) cost, and this decline is considered other than temporary, the maximum amount that the inventory can be valued at is the net realizable value.
The right option is b. Net realizable value
The reason behind the falling of price and quantity of ketchup sold is that the cost of mustard seeds decreases as mustard is a substitute of ketchup and for the input mustard seeds are produced. So, if the price of mustard seed decreases, the price of ketchup also decreases.
Film production or business is one of the few nationally subsidized media businesses in the United states. Understanding the importance of quality sounds in movies, games and songs is a crucial part of understanding what it means to be a successful and memorable. However, some critics view the introduction of sound as having negative impact on the film business because smaller filmmakers were forced to close and therefore increasing the hold of big studios on the industry.
Answer:
$500,000
Explanation:
in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale
In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000
