What are Gerald's purchases expected to be in February?
A) $2,500
B) $5,000
C) $7,500
D) $10,000
E) $15,000
C
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Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true?
a. The capital, or finance, lease method treats leases equivalent to installment purchases or sales, where the lessee borrows funds from the lessor to purchase the asset and the lessor recognizes profit at the time of sale. b. The lessee records the leased asset and the lease liability on the balance sheet at the present value of the contractual cash flows at the time of signing the lease. c. The lessee amortizes the leased asset, similar to recognizing depreciation on buildings and equipment. d. The lessee recognizes interest expense on the lease liability, similar to recognizing interest expense on long-term notes or bonds. e. The lessor records the signing of a capital lease differently than if the lessor sold the leased asset for an installment note receivable.
When a corporation is formed, if the sole shareholder receives stock in exchange for property subject to a liability, the shareholder will recognize a gain.
Answer the following statement true (T) or false (F)
Which of the following equations represents the present value (PV) of a discounted future amount (FA) at a discount rate (i) for multiple periods (n)?
a. b. c. d.
The assumption of exponentially distributed service times indicates that
a. 37% of the service times are less than the mean service time. b. 50% of the service times are less than the mean service time. c. 63% of the service times are less than the mean service time. d. service time increase at an exponential rate as the waiting line grows.