Why is the time value of money often taken into account in analyzing a capital investment?
What will be an ideal response?
Answers will vary.
Capital investments involve expected cash flows occurring over long periods of time. Therefore, taking the timing of cash flows into account can improve the quality of decision making. After all, a cash flow occurring many years into the future has a lower present value than the same cash flow occurring sooner.
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A. gaming sites. B. newsgroup/forums. C. social network sites. D. online retailers.
Discuss the public key encryption technique
Discuss ways to ensure a survey is reliable and valid
What will be an ideal response?
During August, Boxer Company sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the customer warranty repairs is:
A. Debit Warranty Expense $14,400; credit Estimated Warranty Liability $14,400. B. Debit Warranty Expense $9,400; credit Estimated Warranty Liability $9,400. C. Debit Estimated Warranty Liability $17,800; credit Parts Inventory $17,800. D. Debit Estimated Warranty Liability $9,400; credit Parts Inventory $9,400. E. Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800.