If you are replacing an old vehicle with a newer model, the cost of the old vehicle is considered a sunk cost.
This is because the money spent on the old vehicle cannot be recovered and is not relevant to the decision-making process for acquiring the new vehicle.
Sunk costs are not relevant to the decision-making process for acquiring the new vehicle because the money spent on the old vehicle has already been spent and cannot be recovered.
When making a decision about acquiring a new vehicle, the relevant costs are the costs associated with the new vehicle, such as the purchase price, maintenance costs, and operating costs.
In other words, the decision to acquire a new vehicle should be based on the costs and benefits of the new vehicle, and not on the costs and benefits of the old vehicle. Focusing on the sunk cost of the old vehicle can lead to a biased decision-making process and may result in a poor decision.
It is important to note that sunk costs can still have an impact on decision-making in certain situations. For example, if the old vehicle has a resale value or trade-in value, this value should be taken into account when making a decision to acquire a new vehicle.
However, in general, the cost of the old vehicle is considered a sunk cost and is not relevant to the decision-making process for acquiring a new vehicle.
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b. solvency
c. investment
d. tariff
A contract is a written agreement
ANSWER: There are many ways how entrepreneurs benefit the economy. Few of them are
1) Create Jobs: Entrepreneurs create jobs in the community. When someone opens a new business or expands his new business, he will need human resource to help him to do his works.
2) Wealth Creation: Entrepreneurs pool in their own money and attract investment from lenders, banks and other investors. This mobilizes public wealth.
3) Exports: Entrepreneurs after growing in their businesses will want to export their products as a part of extending their market. This will help gain foreign currency in the country.
b.YTM assumes the bond is called at the earliest possible date.
c.YTM is a compounded rate of return.
d.YTM assumes all interest payments are reinvested at the YTM rate.
Answer: Options (A), (C) and (D) are correct
Explanation:
Yield to maturity ,is referred to as or known as theoretical IRR or internal rate of return that is earned by a person or investor who tends to buy that bond at the respective market price, also assuming the bond is enclosed till maturity, and further knowing that coupon and other principal payments are to be made on the schedule. YTM is referred to as or known as discount rate on which sum of future cash flow tends to be equal to current price of bond.
Answer:
c. matching principle
Explanation:
In accounting, one of the underlying principles is the matching concept which requires that a company reports the expenses in the statement of profit or loss along with the related revenue earned in the same period.
It seeks to ensure that expenses are matched to the revenue generated from the activities that resulted in the company incurring such expense.
Hence the matching principle requires that the costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized.