Zachary has purchased an investment that he expects to produce income of $3,000 at the end of the first year and $4,000 at the end of the second year. If he pays $5,800 for this investment, what is the internal rate of return?
What will be an ideal response?
Answer: $3,000/1.128 + $4,000/1.1282 = $5,800 Answer is approximately 12.8%. A more exact answer found with Excel is 12.8414%
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Which of the following statements is true?
a. Only the effects of internal transactions must be recognized and recorded in the entity's accounting system. b. An internal event is a transaction between an entity and its environment. c. Not all recognizable events are supported by a standard source document. d. Only the effects of external events must be recognized, measured, and recorded in an entity's accounting system.
How should Focus company record expenditures for research and development costs according to US. GAAP?
a. expense as incurred b. capitalize and depreciate c. amortize them over 60 months d. none of the above
Which of the following is a function of headings in a report?
A. headings minimize white space B. headings spell out the significance of the material in a section C. headings act as signposts to guide the reader through the report D. all of these
When is the annual shareholder's meeting held?
A) on the dates fixed in the bylaws B) at the whim of the board of directors C) only if and when there is a crisis D) only at the time of electing a new board of members