You buy a bond for $1,000 today that promises interest of $50 in one year plus the return of your principal. However, the probability that the company will default and not pay you either interest nor repay your principal is 1 percent. The expected return on the bond is ____ percent.
A. 3.95
B. 4.00
C. 4.95
D. 5.00
Answer: A
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Answer the following statements true (T) or false (F)
1. The production cost report for Department 2 shows that $452,000 was assigned to the 59,000 units transferred to Finished Goods Inventory. This cost assigned to Finished Goods Inventory is recorded with a debit to Work-in-Process—Department 2. Process costing is used. 2. The production cost report for Department 2 shows that $454,000 was assigned to the 50,000 units transferred to Finished Goods Inventory. Cost of goods manufactured equals $454,000. Process costing is used. 3. The production cost report for Department 2 shows that $457,000 was assigned to the 51,000 units transferred to Finished Goods Inventory. Cost of goods sold equals $457,000. Process costing is used. Explanation: Cost of goods manufactured equals $457,000. 4. A company uses process costing and a perpetual inventory system. When finished products are sold, Cost of Goods Sold is debited and Finished Goods Inventory is credited. 5. In a process costing system, costs can be controlled with the aid of a production cost report.
In a standard job-order costing system, factory overhead is applied using predetermined rates times actual input
Indicate whether the statement is true or false
The excess of the cash flowing in from revenues over the cash flowing out for expenses is termed net discounted cash flow
Indicate whether the statement is true or false
Star Resorts Corporation wants to terminate its franchise arrangement with Tony. Their contract does not provide for notice of termination or set a time for winding up the business. This means that to wind up, Tony
A. has a reasonable time, with notice. B. has whatever time A determines, with or without notice. C. is entitled to notice, but nothing more. D. must close immediately.