None of those answers are suitable to me.
Government bonds are generally regarded as low-risk and they typically have modest (low) interest rates for return on investment, and these are advantages really. So we can discount answer A, C, and D.
I guess you could say that bonds can be hard to find (Answer B) but this not really true. There is always a bond market to trade bonds on. It requires setting up a trading account or speaking to a broker so this can be more difficult than putting money in a bank account, but to be honest I don't think any of those answers are appropriate for the question.
Answer:
c. Not accrued Disclosed.
Explanation:
The management has estimated the loss contingency of lawsuit as reasonably possible. The Contingent liability is reasonably possible then it will be disclosed in the Notes to Financial Statements and not accrued in Balance sheet. If the contingent liability is probable then the accrual needs to be made in the Balance Sheet.
Stocks pay interest to investors through the year. Bonds only pay interest at fixed time during the year.
Answer:
See the answers below
Explanation:
Depreciation: when a valuable assets loses value over time
the decision she took was to reduce salvage value, increase depreciation expenses and decrease profit tax
. Is Choi’s rule an ethical violation, or is it a legitimate decision in computing depreciation?
Choi's choice of rule is unethical but there are companies in recent tines who employ the same method. It is not keeping with best practices. However, she can employ the recent accounting methods. disclosed if there are changes made.
3. How will Choi’s depreciation rule affect the profit margin of her business?
Her profit margin will increase almost by double
Answer:
$74,250
Explanation:
The computation of interest pay at the end of the first year is given below:-
Interest pay at the end of the first year = Borrowed Euro × Euro at the time of loan × Interest rate per year
= 1,000,000 euro × $1.35/euro × 5.50%
= $74,250
Therefore for computing the interest pay at the end of the first year we simply multiplied the borrowed euro, euro at the time of loan and interest rate per year.