The selection of an appropriate inventory cost flow assumption for an individual company is made by management. The last option is the correct answer.
The following are some of the primary functions of management, which is a sort of organization that manages many types of business activities in order to achieve its objectives:
regulating the systemOrganizing the overall taskOrganizingAs stated in the question, when a company chooses the inventory cost flow in the system, it is known as management since it manages all of the inventory business for the many sorts of items and services.
Management is the right response, thus.
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the world income appreciation fund has current assets with a market value of $2.5 billion and has 75 million shares outstanding. if the fund has a current market price quotation of $36.03, calculate the front-end load.
The World Income Appreciation Fund has 535 million shares outstanding, current assets with a market value of $7.1 billion, and a current market price quotation.
What is example of income?
For many people, an illustration of income would be their wage from a job. Any money that a person or business receives in exchange for labour, the creation of goods and services, or the investment of capital can be considered income. Revenues - Expenses = Net Income is the fundamental equation for an income statement. This straightforward equation reveals whether the business is profitable. The business is profitable if sales outweigh costs.
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John invested $575 in stocks. If he lost d dollars when he sold the stocks, which expression represents the amount of money he received for his stocks?
a) 575 + d
b) d - 575
c) 575 - d
d) d575
Option (c), John made a $575 stock investment. The expression 575 - d represents the amount of money he received for his stocks if he lost d dollars when he sold them.
Algebraic expressions: what are they?Any grouping of terms that has been subjected the mathematical operations like addition, subtraction, multiplication, division, etc. is known as an algebraic expression (or variable expression). Let's use the equation 5x + 7 as an example. As a result, 5x + 7 is an example of an algebraic expression.
When continuous or fractional constants (numbers), variables (alphabets), and algebraic operators (such as addition, subtraction, division, and multiplication) are combined, the result is an algebraic expression. The symbols used to represent these expressions are words, integers, and coefficients.
let:
y: the sum of money he was paid for his shares
d: money losted
The phrase that describes the issue the best is:
y = 575-d
Where:
y <575
The amount of money I received in exchange for his stocks can be expressed as follows:
y = 575-d
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a manufacturer has determined that the total cost of operating a factory is where is the number of units produced. at what level of production will the average cost per unit be minimized? (the average cost per unit is
The outputs from the inputs are modelled using cost functions. At a manufacturing level of 100 units, the average cost per unit will be at its lowest.
Is it correct to say inputs?
Despite the fact that the verb "input" is derived from "put," which is rarely used in the past tense "putted," both inputted and input are valid past tenses of the verb. Both "input" and "inputs" are valid plurals for the word "input," which can refer to both anything inputted into a computer and someone's counsel, for example. Some senses of input, like the place on an electric equipment where information or energy enters, are always pluralized with a S.
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which legislation provides civilian employees of the federal government with medical care, survivors' benefits, and compensation for lost wages? a. office of workers' compensation programs b. black lung benefits reform act c. federal employees' compensation act d. longshore and harbor workers' compensation act
Federal Employees' Compensation Act. provides civilian employees of the federal government with medical care, survivors' benefits, and compensation for lost wages.
What is What is the employee compensation Act?
The Federal Employees' Compensation Act (FECA) covers federal civilian employees who suffer from illnesses or injuries at work by providing adequate financial and medical compensation as well as assistance in getting back to work.
Benefits in money include reimbursement for lost wages and compensation for permanent damage.
What does FECA mean in its entirety?
The Federal Employees' Compensation Act (FECA) Claims Administration handles new benefit claims, handles open cases, pays medical bills and compensation benefits to injured workers and survivors, and assists injured workers in returning to work once they are physically fit to do so.
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Answer:
Federal Employees' Compensation Act. provides civilian employees of the federal government with medical care, survivors' benefits, and compensation for lost wages.
Explanation:
excluding burial vault and cemetery costs, what was the average cost of an adult funeral in the u.s. in 2016?
Excluding burial vault and cemetery costs, what was the average cost of an adult funeral in the U.S. in 2016 is $2,220.
By typical cost, what do you mean?In economics, average cost or unit cost is determined by dividing the total cost (TC) by the quantity of a good produced (the output Q): How businesses decide to price their commodities is strongly influenced by average cost.
What are company costs typically?Average cost is calculated by dividing the total cost of production by the volume of output produced. This figure is also referred to as the unit cost or average total cost. Simply put, it calculates how much a company must spend on each unit or item of output generated.
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4) Given continuous compounding, the growth of $5,000 invested for one year at 12% interest equates to
$5000 compounded continuously at a rate of 12% for 1 year will yield a final amount of $5637.48
What is continuous compounding?If compound interest is computed and reinvested into the balance of an account across an essentially unlimited number of periods, continuous compounding is the mathematical maximum that compound interest may reach. The idea of perpetually compounded interest is crucial in finance even if it is not practical. Given that most interest is compounded on a monthly, quarterly, or semiannual basis, this is an extreme example of compounding.
When calculating interest, continuous compounding makes the premise that it will compound over an infinitely long period of time. Although the idea of continual compounding is crucial, there is no way in which interest could be computed and paid for an unlimited number of periods in the actual world. Because of this, interest is frequently compounded using a predetermined term, such as monthly, quarterly, or yearly.
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Which two of the four Cs of credit have to do with earning potential and avaliable cash?A). Capital B). Credit history C). Capacity D). Collateral
The two of the four Cs of credit have to do with earning potential and available cash will be Credit history.
Earning potential would be the anticipated increase in total return that an investor might anticipate from maintaining an investment (capital gains plus dividends and cash flows). Ratio analysis was a tool used by fundamental analysts to estimate a company's earning potential both for investors.
Although expected earnings were the anticipated values of real earnings, earning capacity would be the expected earnings of such a worker who decides to maximize the expected value of future actual earnings.
Therefore, the correct answer will be option (B)
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4) the daily returns on a portfolio are normally distributed with a mean of 0.001 and a standard deviation of 0.002. a) what is the probability that the daily returns on that portfolio are positive for at least 60 out of the next 100 days?
The probability of the daily returns on the portfolio being positive for at least 60 out of the next 100 days is 0.5.
What is portfolio?A portfolio is a collection of a person's work samples, usually in the form of documents, photographs, or other physical items. The portfolio is used to demonstrate an individual's skills and achievements, such as written work, drawings, designs, or even photographs. A portfolio can be used to showcase a person's talents and abilities to potential employers or clients. It can also be used to document an individual's progress over time or to provide evidence of a person's achievements.
The formula for a normal distribution's cumulative distribution function is:
P(X ≤ x) = 0.5*(1 + erf((x - μ)/(σ*sqrt(2)))
where erf is the error function, μ is the mean, σ and is the standard deviation.
Plugging in the given values of μ = 0.001, σ = 0.002 and x = 0, we get:
P(X ≤ 0) = 0.5*(1 + erf(0)) = 0.5
Therefore, the probability of the daily returns on the portfolio being positive for at least 60 out of the next 100 days is 0.5.
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rachel bought a piece of land to build a house on that is very narrow on one side. because of that, to fit the house in, she wants to build with a 10-foot setback instead of the 15-foot setback specified by the zoning ordinances in her area. what does she need to do this?
To put a house on, Rachel purchased a plot of land that is extremely narrow on one side. Because of this, she wants to build with a 10-foot setback rather than the 15-foot setback required by the local zoning regulations in order to fit the house in. She must carry out an area variance.
What does variance in real estate mean?A property owner may ask for a variance to deviate from the current zoning restrictions for a number of different reasons. The legal uses of land in a certain area or zone are determined by zoning legislation, also referred to as a zoning ordinance, which is passed by a local governing body.
An area variance authorizes a property owner to disregard the dimensional restrictions of a zoning law, in contrast to a use variance, which permits a landowner to use a property in a way that is not officially permitted for the district (such as a building setback or height limit).
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if you were given a set of financial statements, how would you go about analyzing them to learn about the company?
Since it shows a company's potential to turn a profit, the income statement is likely to be the most crucial financial statement for the majority of consumers.
What can you learn from reading a company's financial statements and why are they important?Accounting records demonstrate how a company runs. It offers information about a company's assets and liabilities, cost of doing business, revenue generation, and cash management effectiveness.
The five conventional methods of financial statement analysis include cost-volume profit analysis, ratio analysis, trend analysis, and horizontal and vertical analysis. Each method enables the construction of a financial profile that is more complex and sophisticated.
Financial statements including the cash flow statement, balance sheet, and income statement must be prepared. With the use of these three statements, traders can learn more about a company's financial health and underlying worth. They also serve as useful tools for analyzing a company's financial strength.
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analyze the new product line and red bull's primary target market for its new coffee energy drinks. what are the niche characteristics of the product and the traits of the primary target market?
Red Bull's primary target market is the middle to high income self-employed. Red Bull targets consumers first, sells products, and then sells.
The brand has grown from the only energy drink on the market to being sold in over 170 countries worldwide.
Red Bull's primary target market depends on packaging, location and distribution channels (such as supermarkets). Companies use packaging to create these products to appeal to a specific consumer base.
For example, Monster Energy's core customer base consists of teenagers, extreme his athletes, and gamers. Their cans feature darker packaging and what is considered a more dangerous image than the logo.
The energy drink market is mainly located in North America, Europe, Asia, Middle East, South America and Africa. North America is the place with the highest sales of energy drinks. This continent is home to big brands like Monster and Bang. In North America, it's not uncommon to see multiple energy drink brands in the same store.
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Assume that marginal propensity to consume is 0.8 and potential output is $800 billion. If the actual real GDP is $700 billion, which of the following policies would bring the economy to potential output?
Increase government spending by $20 billion.
Increase government spending by $25 billion.
Decrease government spending by $100 billion.
Increase government spending by $100 billion.
The "Increase government spending by $100 billion" approach would increase economic output to its potential.
How would you define economy?The mechanism by which products and services are created, offered, and consumed is known as the economy. It includes domestic and foreign trade as well as the economic activity of people, corporations, and governments. It covers research on the creation, dissemination, consumption, and interactions of products and services. Additionally, it covers issues like taxation, inflation, and economic expansion.
By increasing demand, a $100 billion increase in government spending would increase economic output to its capacity. Increased economic activity and job creation as a result of this greater spending would lower the unemployment rate and promote economic growth. The price of products and services would rise in response to the rising demand, raising salaries and stimulating more spending. This would start an upward spiral of economic growth, allowing the economy to operate at its maximum capacity.
As a result, choice D is right.
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why is investing a more powerful tool to build long-term wealth than saving?
For laying a strong financial foundation, saving and investing are both crucial ideas, but they are not the same thing. Both can help you build a more secure financial future, but consumers need to understand the distinctions between the two and when each is preferable.
Although the terms "saving" and "investing" are sometimes used interchangeably, we should actually be doing both to protect our financial future.
The crucial role they play in our lives is a trait that both investing and saving share. If you aren't already doing either, the time has come to start. This may necessitate adjustments to your budget, spending habits, and how you use your income, but it can and ought to be included in your strategy.
The degree of risk taken is the main distinction between investing and saving. You normally get a smaller return from saving, but there is almost no danger. Contrarily, investment gives you the chance to make a bigger return but comes with a danger of losing money.
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You are interviewing assistants for your role as an emergency manager and one of the interviewing requirements is communication. you ask each interviewee to demonstrate announcing the evacuation of the building. on what will you focus?
loud, clear voice
clear, calm voice
giving lots of details
giving very few details
The situational approach is an interview technique that gives the candidate a hypothetical scenario or event.
Define voice?
Voice is the sounds, especially speech, that a living thing makes using their mouth or the ability to use vocal chords and air to make sounds. Voice is also an expressed desire. Voice means to express something. voice, in grammar, form of a verb indicating the relation between the participants in a narrated event (subject, object) and the event itself. Common distinctions of voice found in languages are those of active, passive, and middle voice.It tells us if the action is done by the subject or the action is done to the subject. e.g. Teacher teaches the students. In this sentence the action of teaching is done by the subject 'teacher'To learn more about focus refers to;
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a) unemployment and the price level. b) unemployment but not the price level. c) the price level, but not unemployment. d) neither the price level nor unemployment.
The classical macroeconomics theory holds that changes in the money supply have an impact on both unemployment and the level of prices.
Neoclassical frameworks serve as the foundation for all analysis in the macroeconomic school of new classical macroeconomics, often known as new classical economics. It emphasizes the value of rigorous microeconomics-based foundations, notably rational expectations.New classical macroeconomics attempts to provide neoclassical microeconomics underpinnings for macroeconomic analysis. This contrasts with the competing new Keynesian school, which uses micro foundations like imperfect competition and price stickiness to build macroeconomic models that resemble older Keynesian ones. The term "classical economics" refers to the earliest modern school of economic philosophy. The Wealth of Nations by Adam Smith, which came out in 1776, is credited with founding the school.
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what type of analytical procedure would an auditor most likely use in developing relationships among balance sheet accounts when reviewing the financial statements of a nonpublic entity?
Ratio analysis is often used to examine relationships between balance sheet accounts.
A balance sheet is a summary of the financial condition of a person or an organization, including a corporation, private limited company, sole proprietorship, business partnership, government agency, or not-for-profit organization. In financial accounting, a balance sheet is also known as a statement of financial position or a statement of financial condition. Assets, liabilities, and ownership equity are reported as of a specific date, like the end of its fiscal year. A balance sheet is frequently referred to as a "representation of a company's financial status." [1] Only the balance sheet, out of the four basic financial statements, is applicable for a specific time period throughout a company's fiscal year.A simple balance sheet for a business lists assets on the left.
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Most rabbits do not enjoy being held or petted very much, so you should probably keep handling to a minimum.
Two rabbit breeds that are suitable as pets are the Netherlands Dwarf and the Lop. To lift a rabbit, support its back legs with one hand while holding onto the loose skin over its shoulders with the other.
What are rabbits called?A doe is the name for a female rabbit, whereas a buck is for a male. A kitten or kit refers to a young rabbit. Despite the size of some of them, rabbits are not rodents. Humans frequently breed rabbits to keep as pets. Meadows, forests, grasslands, deserts, and wetlands are some of the rabbits' preferred environments. The best-known species, the European Rabbit, lives in subterranean burrows or "rabbit holes" with its family. They are social creatures that live in family groupings. The world's largest variety of rabbit is called a Flemish Giant Rabbit. Males have a weight limit of over 13 pounds. Originally, Flemish Giants were raised for meat, but due to a high bone-to-flesh ratio, this technique was abandoned and breeding for shows took its place.
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you are working closely with your project sponsor to create the initiation documents required to get a construction project approved. the sponsor has provided you with a number of details that you want to organize for your project proposal. which details would be considered to be risks to the project?
The aspects that would be regarded as dangers to the project are that finishing work during the dry season will decrease the number of days lost due to rain.
What is the definition of project risk management?Risk management in project management refers to efforts for mitigating project risks and ensuring that a project is finished on time and within budget while still meeting its objectives.
The goals of project risk management are to improve the likelihood and effect of good occurrences while decreasing the likelihood and impact of bad events. Utilizing the outputs from risk management planning is part of project problem management. Supporting organizational variables, defined roles, and duties, and technical analysis are all required for effective project risk management.
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which of the following statements regarding the circular-flow diagram is true? a. the factors of production are owned by households. b. if susan works for ibm and receives a paycheck, the transaction takes place in the market for goods and services. c. if ibm sells a computer, the transaction takes place in the market for factors of production. d. the factors of production are owned by firms. e. none of the above is true.
Households are the actual owners of the producing factors. b. If Susan is employed by IBM and receives payment, the exchange happens in the market for goods.
What is IBM known for?
Computers, servers, storage systems, and networking gear are just a few of the hardware and software items that IBM is renowned for. Additionally, it offers consulting, technological, and commercial services in areas like cloud computing, data analytics, and AI (AI). The creation of the first programmable computer, the first hard drive, and the first computer virus were all made possible because to IBM's research and development
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think of a company which you admire and trust. who are they, what makes them special, and why do they stand out to you?
P&G is a company I admire and trust for its commitment to sustainability and social responsibility.
B. Procter & Gamble (P&G) is a global business that has been around since 1837 and is now one of the world's largest consumer goods companies.
They are known for their strong commitment to sustainability, social responsibility, and ethical practices, which is why they stand out to me. P&G has taken a leadership role in sustainability by committing to produce a number of products with renewable, recycled, or responsibly sourced materials.
They have also committed to reducing their carbon footprint and investing in renewable energy and water conservation. In terms of social responsibility, P&G has partnered with organizations such as Unicef and the World Wildlife Fund to help improve the lives of people and animals around the world.
They have also committed to improving labor practices and conditions for workers, especially in developing countries. Finally, P&G has a strong focus on ethical business practices, engaging in responsible and transparent communication with customers and stakeholders. All of these efforts make P&G a company I admire and trust.
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research departments that utilize a set of procedures for generating an orderly flow of pertinent information for use in making marketing decisions is using a(n) system. multiple choice question.
Research departments that utilize a set of procedures for generating an orderly flow of pertinent information for use in making marketing decisions are using The Marketing system.
Advertising and marketing is the method of exploring, creating, and handing over fees to satisfy the wishes of a target market in terms of goods and offerings; doubtlessly which includes the selection of an audience; selection of positive attributes or subject matters to emphasize in advertising and marketing; operation of advertising and marketing campaigns; attendance at exchange shows and public activities; design of merchandise and packaging appealing to buyers; defining the phrases of sale, including rate, reductions, warranty, and go back policy; product placement in media or with people believed to influence the shopping for habits of others; agreements with shops, wholesale distributors, or resellers; and tries to create recognition of, loyalty to, and high-quality emotions approximately a logo.
Advertising and marketing are normally achieved via the vendor, commonly a store or producer. every so often the task is shrunk to a committed advertising firm or advertising enterprise. more rarely, a trade association or government agency (such as the rural marketing service) advertises on behalf of an entire industry or locality, regularly a selected sort of food (e.g. were given Milk?), meals from a particular vicinity, or a city or location as a tourism destination.
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a customer buys a new municipal issue from an underwriter on friday, january 16th, with settlement taking place on tuesday, january 20th. the bond is dated january 1st. how many days of accrued interest must be paid by the customer to the underwriter?
The ideal response is C. On a fresh issuance, interest starts to accrue from the dated date up to, but excluding, the day when the first trade settles. Interest accrues through January 15 due to the January 16 settlement date.
What kind of municipal bond is supported by the issuer's complete faith and credit?States, cities, and counties may issue general obligation bonds, which are not backed by any assets. Instead, general obligation bonds are supported by the issuer's "full confidence and credit," which includes the authority to levy taxes on locals to pay bondholders.
Municipal bonds, commonly known as muni bonds or minis, allow qualified residents to earn income tax-free but have lower coupon (interest) rates than taxable bonds.
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analytical procedures are performed in the following order
Create an expectation, specify what constitutes a major difference, compute forecasts and contrast them with the quantity actually observed, and then explore significant differences.
What are analytical techniques?Analysis of feasible correlations between both fiscal and non data is what makes up analytical methods, which include evaluations of financial information.comparing the current economic statement(s) with the equivalent prior period statement (s).evaluating the relationship between present financial data and anticipated outcomes, such as projections or budgets.contrasting recent financial data with pertinent non-financial data.The following objectives are achieved using analytical procedures: to support the auditor in scheduling additional auditing processes, including their scope, time, and type. as a substantive procedures to gather evidence supporting specific claims regarding account balances or categories of activity.To learn more about analytical procedures refers to:
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If you were to invest $5,000 into a 3-year certificate of deposit account, which of the following would be most desirable as far as compounding frequency?
Choose matching definition
All of these (groceries, car loan, rent)
Quarterly (four times per year)
relatively high interest rate
capacity
Compound interest on savings is calculated on the initial principal and prior interest. In 17th-century Italy, "interest on interest"—compound interest—was invented. It grows a total quicker than simple interest, which just considers the principal. Compound interest grows faster as the number of compounding periods increases.
Compound interest is calculated on the initial principal, including past interest. Compound interest creates "interest on interest". Continuous, daily, or annual interest compounding is possible. Compounding multiplies money quickly.
Daily to annual interest compounding is possible. Financial instruments have conventional compounding frequency schedules. Bank savings accounts often compound daily. Money market accounts compound daily, while CDs compound daily, monthly, or semiannually. Monthly compounding is most frequent for house mortgages, home equity, personal business, and credit card accounts.
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Eton owns Fast Freight Company. He uses the firm's funds to pay his personal expenses, creates Go Trucking Inc. to engage in the same business, transfers Fast Freight's assets to Go Trucking, and petitions Fast Freight into bankruptcy. This most likely warrants a. a discharge for Fast Freight in bankruptcy. O b. a bonus to Eton for effectively eliminating the firm's debts. O c. the application of the doctrine of corporation by estoppel to Go Trucking. d. a pierce of the corporate veil.
The correct option is A. This most likely warrants a. a discharge for Fast Freight in bankruptcy.
A price is a cost that corporations incur in going for walks in their operations. expenses include wages, salaries, maintenance, rent, and depreciation. fees are deducted from revenue to reach profits. organizations are allowed to deduct sure charges from taxes to help alleviate the tax burden and bulk up income.
In line with the internal sales carrier (IRS), business fees are normal and vital fees incurred to operate your business. Examples consist of inventory, payroll, and lease. fixed costs are every day and don’t exchange a lot — such things as rent and coverage. Variable costs are predicted, however, they are able to alternate. some examples consist of income commissions, gasoline for business cars, and shipping fees. You anticipate variable fees each month, however, the real quantity will vary. tracking your commercial enterprise charges allows you to maintain an eye fixed on whether you’ll see earnings or losses.
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how many btus were consumed in the united states in 2017 by consumers that used petroleum as a fuel source? responses
97.7 quadrillion BTUs were consumed in the united states in 2017 by consumers that used petroleum as a fuel source.
A consumer is a person or a group who intends to order or makes use of bought items, merchandise, or services on the whole for private, social, family, household, and comparable needs, and who isn't always directly associated with entrepreneurial or commercial enterprise activities. The term maximum normally refers to someone who purchases goods and services for personal use.
In an economy, a customer buys items or services normally for intake and now not for resale or for business functions. purchasers pay a few amounts of cash (or equivalent) for goods or services.) then consume (burn up). As such, clients play a critical position within the financial device of a capitalist machine and shape a fundamental part of any economic system. without consumer calls, manufacturers could lack one of the key motivations to produce: to sell to clients. The consumer also bureaucracy one cease of the chain of distribution.
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which of the following statements are disadvantages of bond financing? (check all that apply.) multiple select question. bonds can decrease return on equity. bonds require payment of interest and par value. unlike equity financing, bond interest is not tax deductible. large bonds issuances can affect owner control.
The negatives of bond financing include (B) the bonds' detrimental effects on return on equity, the need for interest payments, and (D) the requirement for par value.
What is bond financing?State and local governments regularly employ bond financing, a kind of long-term borrowing, to raise funds, primarily for durable infrastructure investments.
They raise this cash by offering investors bonds. In exchange, they agree to pay back this money on the agreed-upon terms, plus interest.
Bonds' negative effects on return on equity, the requirement for interest payments, and the requirement for par value are drawbacks of bond financing.
Governments and businesses sell bonds as a sort of asset to raise money from investors.
Therefore, selling bonds is a means of borrowing money from the seller.
Therefore, the negatives of bond financing include (B) the bonds' detrimental effects on return on equity, the need for interest payments, and (D) the requirement for par value.
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Correct question:
Which of the following statements are the disadvantages of bond financing? (Check all that apply.)
A. Large bonds issuances can affect owner control.
B. Bonds can decrease return on equity.
C. Unlike equity financing, bond interest is not tax deductible.
D. Bonds require payment of interest and par value.
under state law, boca co. may reimburse the state directly for actual unemployment claims or it may pay 3% of eligible gross wages. boca believes that actual unemployment claims will be 2% of eligible gross wages, and has chosen to reimburse the state. eligible gross wages are defined as the first $15,000 of gross wages paid to each employee. boca had four employees, each of whom earned $20,000 during the year. what amount should boca report as accrued liability for unemployment claims in its year-end balance sheet?
$1,200 amount should boca report as accrued liability for unemployment claims in its year-end balance sheet.
A balance sheet is composed of what?The assets, liabilities, and owner's equity of a company are listed on a balance sheet as of any particular date. The end of predetermined periods is often when a balance sheet is created (e.g., every quarter; annually). Two columns are present on a balance sheet. Assets for the company are listed in the column on the left. A balance sheet is an overview of an entity's financial standing in financial accounting, whether it be a sole proprietorship, a business partnership, a corporation, a private limited company, or another type of entity like a government or not-for-profit institution.
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true or false? japan exports cars to the us and the us exports cars to japan. neither country has comparative advantage in car production generally.
Despite appearances, Japan has a comparative advantage in vehicle manufacturing since it has a lower opportunity cost in terms of grain given up.
A circumstance in which an individual, corporation, or country can create an item or service at a lower opportunity cost than another producer is referred to as comparative advantage.For example, due of its abundance of maple trees, Canada can make maple syrup at a relatively cheap opportunity cost when compared to avocados, a crop for which its climate is less suitable.Mexico, on the other hand, can grow avocados at a far lower opportunity cost in terms of maple syrup given up than Canada because of its abundant sunshine and mild environment.To know more about comparative advantage:
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46. assume that the required reserve ratio is 10 percent, banks keep no excess reserves, and borrowers deposit all loans made by banks. suppose you have saved $100 in cash at home and decide to deposit it in your checking account. as a result of your deposit, the money supply can increase by a maximum of (a) $800 (b) $900 (c) $1,000 (d) $1,100 (e) $1,200
The concept here is the Required reserve ratio, This is a fraction of the deposits that regulators require a bank to hold in reserve and not lend. The answer is option B, $900.
The reserve requirement ratio is the proportion of deposits that regulators require a bank to hold in reserve rather than lend. If the reserve ratio is between 1 and 10, that means the bank must hold $0.10 for every dollar it has in reserves, but it can borrow $0.90 for every dollar.
The reserve ratio is the proportion of reserve liabilities commercial banks are required to hold rather than lend or invest. This is a requirement of the country's central bank, which is the Federal Reserve in the United States.
It is greater than one if the reserve ratio is less than one. Since banks could not lend if they held 100% of the reserves, we can assume that the reserve ratio is less than one.
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