Answer:
<em>Run a recoverability test and then a fair value test.</em>
Explanation:
Business assets with a loss of value are subject to impairment tests to assess and identify the magnitude of the loss.
<em>Measuring the magnitude of the loss requires two steps:</em>
- Performing a recoverability check is to decide whether an impairment loss occurred by determining whether the future value of the undiscounted cash flows of the asset is less than the asset's book value. If the cash flow is less than the value of the book, the loss will be assessed.
- Measure the cost of damage by measuring the difference between the book value and the asset's market value.
Answer:
falling unemployment and rising inflation.
Explanation:
Stagflation means that both the inflation and unemployment rate are rising. Before the 1970s, classical economists stated that an inverse relationship existed between the inflation rate and the unemployment rate. This means that when the inflation rate was increasing, the unemployment rate should be decreasing. But reality does not follow theoretical rules.
<span> making on time payments on a debt
</span><span> purchasing a large kitchen appliance with cash
</span><span> saving 25% of every paycheck</span>
Answer:
C) $201,760
Explanation:
To compute the amount of cash proceeds, we have to multiply the bonds face value with the issued price percentage.
Since only issue price is given, so we assume it is in percentage form because the number of shares is not given in the question. So, we assume this.
In mathematically,
Cash proceeds = Face value × 0.97
= $208,000 × 0.97
= $201,760
Answer:
1) You should go home and watch TV.
Explanation:
Since you value seeing the play $10, then you should leave the theater and go to your house to watch TV since that has a higher value for you ($12).
We are talking about opportunity costs here. Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another. In this case the opportunity costs are:
- watch the play = $10
- watch TV = $12
- read a book = $8
Since watching TV is more valuable to you, then that is what you should be doing.
