What is the effect of the consulting services expense

Assignment Help Financial Management
Reference no: EM131511178

Deerfield Hospital incurs consulting services expense of $500,000 on December 30, 2015. The supplier's invoice states that the $500,000 is due by January 10, 2015 and Deerfield Hospital will pay the invoice on January 9, 2016. Deerfield follows the accrual basis of accounting and its accounting year ends on December 31st each year. What is the effect of the consulting services expense on the December 2015 balance sheet of Deerfield Hospital? a. No effect on the balance sheet at all b. Assets decrease c. Liabilities increase d. Expenses decrease

Reference no: EM131511178

Questions Cloud

Discuss what stood out to you about personality assessment : Personality Theory Blog - Discuss what stood out to you about personality assessment practices
Describe the concept of dialectical behavior therapy : Describe the concept of dialectical behavior therapy, being sure to include the six main points of this type of treatment
Prepare a research proposal for one of pavlov research : Prepare a research proposal for one of Pavlov's research experiments involving children, adjusting it for current principles of ethical guidelines
How government involvement may enhance program effectiveness : An analysis of how government involvement may enhance or hinder the program's effectiveness and Description of the program (who, what, where)
What is the effect of the consulting services expense : What is the effect of the consulting services expense on the December 2015 balance sheet of Deerfield Hospital?
Retirement plan-future value of multiple annuities : Assume that you contribute $180 per month to a retirement plan for 15 years. What is the value of your retirement plan after the 40 years?
Choose two publically traded etfs that a young : Choose two publically traded ETFs that a young
How the class can support antonio change : List one idea showing how the class can support Antonio's change. Explain how you would help your students support their former tormentor
How much money should he place today in a saving account : How much money should he place today in a saving account that earns 5.16 percent per year (compounded daily) to accumulate money for his down payment?

Reviews

Write a Review

Financial Management Questions & Answers

  Future value of single payment

If you deposit $20,000 in a bank account that pays 6.6% interest annually, how much would be in your account after 5 years?

  Assume taxes are automatically deducted from each paycheck

Vincent Lecavlier, a Montreal native, played for the Tampa Bay Lightning. He had a ten year contract worth $100 million ($10 million per year). He dreamed of playing for the Montreal Canadians and 4 years into his contract with Tampa Bay, he was trad..

  Companys cost of common equity if all of its equity

Javits & Sons' common stock currently trades at $22.00 a share. It is expected to pay an annual dividend of $1.25 a share at the end of the year (D1 = $1.25), and the constant growth rate is 4% a year. What is the company's cost of common equity if a..

  Profitability index to evaluate mutually exclusive project

We can use NPV to evaluate two mutually exclusive repeated projects. To make an investment decision based on IRR, we do not need to know the appropriate discount rate. We can use profitability index to evaluate mutually exclusive project. The operati..

  Calculate the amount of the favorable price variance

Using the information in the table below, calculate the amount of the favorable price variance.

  Endorsement deal with a prominent sponsor

Mr. Smith signs a five-year endorsement deal with a prominent sponsor. Under this deal Hyun-Woo will receive $5,000 each year for the first three years and $6,500 each year for the final two years. What is the present value of the total deal if the p..

  Firms ratios are good or poor compared to industry averages

For each of the following ratios indicate whether the firm’s ratios are good or poor as compared to industry averages.

  Determine whether interest rate parity is holding

Consider a spot exchange rate of $1.40/£ and a 3-month forward exchange rate of $1.43/£. Assume a 3-month interest rate of 7.6% p.a. in the U.S. and 4.8% p.a. in the U.K. Assume that you can borrow as much as $1,000,000. Determine whether interest ra..

  Asset management ratios

Asset Management Ratios Corn Products, Corp. ended the year 2008 with an average collection period of 35 days.

  Using more debt financing and less equity financing

There are some elements of a firm’s capital structure that can be adjusted. However, there are some elements that cannot be changed. Why can’t we change the cost of capital of the firm by using more debt financing and less equity financing?

  Calculate the share price for bills bakery

Bill’s Bakery expects earnings per share of $3.22 next year. Current book value is $5.2 per share. The appropriate discount rate for Bill’s Bakery is 14 percent. Calculate the share price for Bill’s Bakery if earnings grow at 4 percent forever.

  Piece of equiipment has depreciate

A piece of equiipment has depreciate to $3,000, but it sells for $1,000 at an auction. Which of the following consequences is MOST accurate?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd