Consider two bonds, F and G. Both bonds presently are selling at their par value of $1,000. Each pays interest of $90 annually. Bond F will mature in 15 years while bond G will mature in 26 years. If the yields to maturity on the two bonds change from 9% to 10%, Group of answer choices both bonds will increase in value, but bond F will increase more than bond G. both bonds will increase in value, but bond G will increase more than bond F. both bonds will decrease in value, but bond F will decrease more than bond G. both bonds will decrease in value, but bond G will decrease more than bond F.

Answer:

Option D or the Last statement is the correct one.

Explanation:

As we can see, this is a multiple choice question with four options A, B , C , D.

And we are given two Bonds F and G.

Par Value of Both Bonds = $1000

Bond F Maturity = 15 Years

Bond G Maturity = 26 Years

Both Pays Interest = $90 Annually

Yield to Maturity Change from = 9% to 10%

So,

The correction option to this question is option D. The Last Statement.  

Option D = Both bonds will decrease in value, but bond G will decrease more than bond F.

Reasoning:

The reason behind this answer is related to number of years of maturity of the bond. There is a simple rule that, Longer the maturity, the greater the price change when interest rates changes. Similarly, Shorter the maturity, the shorter the price change when interest rates change. So, here in this case, Bond G has greater number of years of maturity which is 26 Years as compared to Bond F.

Identify a chart of accounts, using correct headings from the list of account titles below: Account Titles Chart of Accounts Accounts Payable Liabilities Accounts Receivable Assets Building Assets Cash Assets Equipment Assets Insurance Expense Expenses Prepaid Insurance Assets Rent Expense Expenses Service Fees Revenues Dunlop, Capital Owner's Equity Dunlop, Drawing Owner's Equity Supplies Assets Wage Expense Expenses Wages Payable

Joint products Alpha and Beta emerge from common processing that costs $200,000 and yields 9,000 units of Product Alpha and 5,600 units of Product Beta. Product Alpha can be sold for $150 per unit. Product Beta can be sold for $90 per unit. What amount of the joint costs will be assigned to Product Beta if joint costs are allocated on the basis of number of units produced

Synder Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for May when Synder produced 4,500 units: Standard: DLH per unit 2.50 Variable overhead per DLH $1.75 Fixed overhead per DLH $3.10 Budgeted variable overhead $21,875 Budgeted fixed overhead $38,750 Actual: Direct labor hours 10,000 Variable overhead $26,250 Fixed overhead $38,000 Refer to Synder Company. Using the two-variance approach, what is the noncontrollable variance

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process transferred 800,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 185,000 units that are 50% complete with respect to conversion. Beginning work in process inventory had $384,150 of direct materials and $133,875 of conversion cost. The direct material cost added in November is $2,570,850, and the conversion cost added is $2,543,625. Beginning work in process consisted of 67,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 67,000 were from beginning work in process and 733,000 units were started and completed during the period. Required: For the first process: 1. Determine the equivalent units of production with respect to direct materials and conversion.

Graph with x axis labeled Quantity Demanded and numbered in hundreds, 100 to 500. Y axis is Price, with prices 0 to 6. A line r © Public Domain Based on the graph, how is quantity demanded related to price? (5 points) a Quantity demanded decreases as price decreases. b Quantity demanded decreases as price increases. c Quantity demanded increases as price increases. d Quantity demanded is equal to the product's price.

Ajax is reviewing its previous 100% acquisition of Baxter to determine if there is goodwill impairment. At December 31, 2020 Ajax has recorded Goodwill of $330,000 on its books relating to this acquisition. At December 31, 2020, Baxter had a book value of net assets of $400,000 (excluding goodwill) and an estimated fair value for the company of $600,000. What is the amount (if any) of the goodwill write-off required to be booked by Ajax at December 31, 2020 under the FASB rules effective in 2020.

In January, Prahbu purchased a new machine for use in an existing production line of his manufacturing business for $85,000. Assume that the machine is a unit of property and is not a material or supply. Prahbu pays $2,950 to install the machine, and after the machine is installed, he pays $1,600 to perform a critical test on the machine to ensure that it will operate in accordance with quality standards. On November 1, the critical test is complete, and Prahbu places the machine in service on the production line. On December 3, Prahbu pays another $3,900 to perform periodic quality control testing after the machine is placed in service. How much will Prahbu be required to capitalize as the cost of the machine

A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of 10%, $100 par, cumulative preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends follow. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Preferred Common Year Dividends Total Per Share Total Per Share1 $10,000 2 25,000 3 60,000

lumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:

Budgeted costs of operating the plant for 2000 to 3000 hours:

Fixed operating costs per year $480,000
Variable operating costs $800 per hour
Budgeted long-run usage per year:

Flashlight Division 1500 hours
Night Light Division 600 hours
Practical capacity 3000 hours

Assume that practical capacity is used to calculate the allocation rates.

Actual usage for the year by the Flashlight Division was 1500 hours and by the Night Light Division was 800 hours. If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Flashlight Division? Assume actual usage is used to allocate operating costs.

a. $1,850,000
b. $1,200,000
c. $2,050,000
d. $1,537,500

Island Corporation owes Mutual Bank a 10% note payable for $100,000 plus $8,000 accrued interest. On October 1, 2018, Island and Mutual Bank execute an agreement whereby Island will pay Mutual $128,000 on the due date of the note on October 1, 2020. If the present value interest factor for two years at 10% is .82645, what will be the new note receivable balance for Mutual Bank

Vaughn Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $219,000; and fixed costs $71,600. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume.

Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 41,000 shares of common stock for cash. Paul also had 6,500 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 5%, and is convertible into 3 shares of common for each share of preferred. Paul also had 430, 7%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $280,000 with a 40% tax rate. Common shareholders received $1.30 per share dividends after preferred dividends were paid in 2021. Required: Compute basic and diluted earnings per share for 2021.

During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be:

Kareem bought a rental house in March 2014 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building. Early in 2016, he had a tennis court bt1ilt in the backyard at a cost of $7,500. Kareem has deducted $30,900 for depreciation on the house and $1,300 for depreciation on the cot1rt. In January 2019, he sells the house and tennis court for $330,000 cash.

a. What is Kareem's realized gain or loss?
b. What is the adjusted basis of the rental house and land at the time of the sale?
c. What is the adjusted basis of the tennis court at the time of the sale?
d. If the buyer takes the property subject to the $80,000 mortgage, rather than assuming it, what is Kareem's realized gain or loss?

Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below:Total Company Division L Division QSales $ 541,000 $ 173,000 $ 368,000Variable expenses 323,720 117,640 206,080Contribution margin 217,280 55,360 161,920Traceable fixed expenses 111,910 38,710 73,200Segment margin 105,370 $ 16,650 $ 88,720Common fixed expenses 64,160Net operating income $ 41,210The break-even in sales dollars for Division Q is closest to:

Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data: Center Budgeted Revenue Actual Revenue Budgeted Direct Costs Actual Direct Costs Downtown $ 320,000 $ 340,200 $ 300,000 $ 300,000 Irvine 560,000 534,600 510,000 440,000 H. Beach 720,000 745,200 690,000 740,000 Totals $ 1,600,000 $ 1,620,000 $ 1,500,000 $ 1,480,000 WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $60,000. Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to the Irvine center

Which diagram arranges the types of business organizations from the most
owners to the fewest owners?

"Your first morning in your new office, you reflect on what type of manager and leader you hope to be. Which of the following best reflects what you believe about employees and how they can best be led? Select an option from the choices below and click Submit. Employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical. Employees’ behavior can be shaped and motivated, not only by rewarding good behavior but also by penalizing bad behavior. Employees need to be discouraged from bad behavior. They work harder when they know that failure has consequences."

Park Co. holds a 80% interest in San Marino Co. During 2019, San Marino sold inventory costing $1,155,000 to Park for $1,650,000. A total of $600,000 of this inventory was not sold to outsiders until 2020. During 2020, San Marino sold inventory costing $1,080,000 to Park for $1,800,000. A total of $750,000 of this inventory was not sold to outsiders until 2021. In 2020, Park reported a net income of $2,250,000 while San Marino reported $1,350,000. What is the noncontrolling interest in the 2020 income of the subsidiary

Heavenly Pastries, Inc. Heavenly Pastries, Inc. was founded in 1998 by Gary Houser in Boston, Massachusetts. Over the years, Heavenly Pastries grew from a small neighborhood shop to a national brand. In 2015 Heavenly Pastries went public. At the time of the public offering, there were 100 stores across the country, employing almost 1,000 employees. Over the next three years, Heavenly Pastries doubled the number of stores and employees. Corporate headquarters, still located in Boston, realized that the accounting information system needed to be upgraded. In May, 2019, the Information Technology Division (IT) was charged with upgrading the payroll software.
The Division consists of two departments, Development and Operations. The Development Department is responsible for the coding and testing of the payroll software; the Operations Department is responsible for the operation and maintenance of the new payroll software. Steven Miller is the IT Division manager. Since he supervises both departments, Steve has global access to all aspects of the payroll software, including employee additions, pay rate changes, and employee benefits changes. Steven Miller has been with Heavenly Pastries for just over one year.
Gary Houser Heavenly Pastries- Information Technology Division
He has been struggling with a gambling addiction for the past five years and has run up considerable debts. Subsequent to turning control of the new payroll software over to the Payroll Department, and before the first payroll was run using the new system. Sarah Cutter, the payroll supervisor, is responsible for updating the new payroll system, inputting employee data (names, Social Security numbers, tax and benefit information) and pay rates. Discuss means more than one or two sentences.
1. The fraud triangle lists three conditions that are usually present when fraud occurs. Discuss the three conditions and if they are present. For each condition, provide examples from the case.
2. List the red flags present that suggest the possibility of frauds and what type of frauds do these red flags suggest?
3. How would the fraud impact the financial statements?
4. Discuss the procedures you would use to detect this fraud.
5. Lastly, discuss the procedures that should be implemented to prevent this fraud.

You are running a hypothetical e-business in this course. Suppose your company only have one employee and three customers who do not access your website frequently. Your company also does not need to process a lot of information; in this case, to save your money, which types of computers does your company need to fulfill such a computing need?

he following information relates to Halloran Co.'s accounts receivable for 2021: Accounts receivable balance, 1/1/2021 $ 840,000 Credit sales for 2021 3,300,000 Accounts receivable written off during 2021 70,000 Collections from customers during 2021 3,100,000 Allowance for uncollectible accounts balance, 12/31/2021 210,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2021

Money serves three functions in the economy: medium of exchange, unit of account, and store of value.
For each of the following statements about inflation, indicate which function of money inflation is hindering.
Statement Store of value Unit of account Medium of exchange
Inflation erodes money's purchasing power.
Inflation causes menu costs.
In some countries with hyperinflation, prices are posted in terms of U.S. dollars rather than the local currency, even though the local currency is still used to purchase the good.

A company purchased equipment valued at $190,000. It traded in old equipment for a $108,000 trade-in allowance and the company paid $82,000 cash with the trade-in. The old equipment cost $170,000 and had accumulated depreciation of $68,000. This transaction has commercial substance. What is the recorded value of the new equipment

Ely Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $60,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $9,000 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $18,000 and $30,000, respectively. Data on standard service hours and number of employees are as follows:

Data on standard service hours and number of employees are as follows:
Maint. Person. Dept. Dept.
Dept. Dept. X Y
Standard service hours used 100 50 300 150
Number of employees 5 10 45 45
Direct labor hours 50 50 250 250

Predetermined overhead rates for Departments X and Y, respectively, are based on direct labor hours.

What is the overhead rate for Department Y assuming the direct method is used?

a. $120.00
b. $218.00
c. $109.00
d. $250.00

Jupiter Satellite Corporation earned $29 million for the fiscal year ending yesterday. The firm also paid out 30 percent of its earnings as dividends yesterday. The firm will continue to pay out 30 percent of its earnings as annual, end-of-year dividends. The remaining 70 percent of earnings is retained by the company for use in projects. The company has 2.6 million shares of common stock outstanding. The current stock price is $105. The historical return on equity (ROE) of 11 percent is expected to continue in the future. What is the required rate of return on the stock

explain the rational accounting system in a business organization​

On March 9, Phillips gave Jackson Company a 60-day, 12% promissory note for $5,200. Phillips dishonors the note on May 8. Record the entry that Jackson would make when the note is dishonored, assuming that no interest has been accrued. Assume Jackson expects collection will occur. (Use 360 days for calculation. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round intermediate calculations to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 1,525.)

Prob(Total time in process > t) = EXP(-t/T) T = (1/(Rp - Ri)) = (1 / Rs) R = min(Ri, Rp) u=R/Rp Dominic runs an appliance repair shop and sells replacement parts for appliances to walk in customers. Customer take an average of 5 minutes. It is a single phase system with 1 server. The coefficient of arrivals and the coefficient of processing times is 1.0. If Dominic's utilization were 80%, how many would be standing in line waiting to be served?

At the beginning of the current season on April 1, the ledger of Sandhill Pro Shop showed Cash $2,950; Inventory $3,500; and Common Stock $3,450. The following transactions were completed during April 2022.
Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $2,500, terms 2/10, n/60.
7 Paid freight on Arnie purchase $80.
9 Received credit from Arnie Co. for merchandise returned $700.
10 Sold merchandise on account to members $1,340, terms n/30. The
merchandise sold had a cost of $920.
12 Purchased golf shoes, sweaters, and other accessories on account from
Woods Sportswear $1,050, terms 2/10, n/30. 14 Paid Arnie Co. in full.
17 Received credit from Woods Sportswear for merchandise returned $50.
20 Made sales on account to members $910, terms n/30. The cost of the
merchandise sold was $550.
21 Paid Woods Sportswear in full.
27 Granted an allowance to members for clothing that did not fit properly $70.
30 Received payments on account from members $1,400.
Journalize the April transactions using a perpetual inventory system.