suppose a starbucks tall latte costs $4.00 in the united states and 2.50 euros in the euro area. also, suppose a mcdonald's big mac costs $4.50 in the united states and 3.60 euros in the euro area. if the nominal exchange rate is 0.80 euros per dollar, which goods have prices that are consistent with purchasing-power parity? a. both the tall latte and the big mac b. neither the big mac nor the tall latte c. the big mac but not the tall latte d. the tall latte but not the big mac

Answers

Answer 1

The nominal trade fee tells how plenty overseas foreign money may be exchanged for a unit of home foreign money.

The required details for nominal exchange rate in given paragraph

1. b. the Big Mac however now no longer the tall latte.

($1 = 0.eighty euro

So, Price of tall latte in euros have to be 4*0.8 = 3.2 euros which does now no longer identical 2.five euros.

Price of huge mac in euros have to be (4.five)*0.8 = 3.6 euros equals real fee of 3.6 euros.)

2. a. most effective the nominal trade fee depreciates.

(As US reports inflation, nominal trade fee will depreciate however actual trade fee will now no longer change.)

The nominal trade fee is the quantity of home foreign money had to buy overseas foreign money. In economics, the NEER is a trademark of a country's worldwide competitiveness in phrases of the overseas trade (forex) market.

Exchange fees are decided through factors, such as hobby fees, confidence, the contemporary account on stability of payments, monetary boom and relative inflation fees.

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Related Questions

Wealth is redistributed from debtors to creditors when inflation was expected to be.

Answers

When inflation is lower than projected despite strong expectations, wealth is transferred from debtors to creditors.

What is inflation?In the field of economics, inflation is the broad term for a rise in the cost of goods and services across an economy. Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.According to Stanford economist John Taylor, inflation increases when the Federal Reserve sets an interest rate that is too low or when the growth of the money supply is too rapid, as it is at the moment.Strong expectations are overcome by inflation that is lower than expected, which transfers wealth from debtors to creditors.

Therefore, when inflation is lower than projected despite strong expectations, wealth is transferred from debtors to creditors.

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if you have agreed to sell a foreign exchange forward, group of answer choices you have a short position in the forward contract. you have a long position in the forward contract. until the exchange rate moves, you haven't made money, so you're neither short nor long. you have a long position in the spot market.

Answers

The correct answer is (C). If you have agreed to sell a foreign exchange forward, until the exchange rate moves, you haven't made money, so you're neither short nor long.

When utilized by large firms and banks, currency forwards normally do not demand an upfront payment, in contrast to other hedging techniques like currency futures and options contracts—which each require an upfront payment for margin requirements and premium payments, respectively.

However, a currency forward has minimal wiggle room and is a legally binding commitment, thus the contract buyer or seller cannot back out if the "locked-in" rate ultimately turns out to be unfavorable. Financial institutions that deal in currency forwards may therefore request a deposit from ordinary investors or smaller businesses with whom they do not already have a commercial relationship to offset the risk of non-delivery or non-settlement.

If the option is mutually accepted and has been defined in advance in the contract, currency forward settlement can be done on either a cash basis or a delivery basis. Since they are not traded on a controlled exchange, currency futures are over-the-counter (OTC) instruments and are also referred to as "outright forwards."

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the money paid by private business to the suppliers of loans used to purchase capital or money that households receive on savings accounts is called .

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The money paid by private businesses to the suppliers of loans used to purchase capital or money that households receive in a savings accounts is called interest.

Consists of Federal excise taxes and customs duties, kingdom and local sales taxes, belongings taxes (together with residential actual estate taxes), motor car licenses, severance taxes, and unique exams.

Government purchases encompass any spending by way of federal, country, and nearby companies, with the exception of debt and transfer bills consisting of Social protection. Average, government purchases are a key element of a nation's gross domestic product (GDP).

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the allowance for uncollectible accounts is a: multiple choice deferred charge to expense. contra asset account. deferred revenue account. quasi-liability account.

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The allowance for uncollectible accounts is a contra asset account. Hence, option B is correct.

What is contra asset account?

The counter asset accounts also include Accumulated Depreciation and Allowance for Doubtful Accounts. Contra asset accounts are maintained with a credit balance that reduces the asset's balance. A significant example of a contra liability is the discount on notes or bonds payable. In contrast, liabilities have a negative balance.

An account balance that is different from the usual balance. Because its credit balance is the opposite of the debit amount for an asset account, accumulated depreciation serves as a useful example of a contra asset account.

Thus, option B is correct.

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a stock pays a constant annual dividend and sells for $31.11 per share. if the dividend yield of this stock is 9 percent, what is the dividend amount?

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The profit measure of the stock is $ 2.80.

Yield on Dividends: It refers to the dividend income from a specific stock's dividends that yields a return.

Dividend

A company's profits are divided between dividends and retained earnings in accounting.A dividend is a payment made to shareholders as a return on their investment from a company's earnings.A significant factor in determining a stock's value is the dividend growth rate, which can be constant, zero, or multiple.The assumption that the current stock price represents the present value of all future dividends is one method for valuing stocks.The dividend yield is the ratio of the stock's price to the dividend paid.

The dividend yield formula can be used to calculate the dividend amount:

Dividend Yield is calculated by dividing the total dividend by the stock's current price, where 0.09 equals the total dividend divided by 31.11 equals 2.80.

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how should cumulative preferred dividends in arrears be reported in a corporation's balance sheet note disclosure

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The cumulative preferred dividends in arrears be shown in a corporation's balance sheet Note disclosure.

On a company's balance statement, how are cumulative preferred dividends in arrears displayed?

However, the dividends paid on cumulative preferred stock in arrears are disclosed in the balance sheet's footnotes, which frequently include a justification for the arrearage and a timeline for payment.

In what way are arrear dividends presented in the financial statements?

The footnotes to the financial statements contain information about the arrear dividends. Only the footnotes are mentioned because the corporation's board of directors has not yet declared, and in the event that it does, cumulative preferred shares will automatically receive the dividends from the prior years.

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in a transaction processing system (tps), a(n) must track the flow of data related to all the cash flows that affect an organization

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In a transaction processing system (TPS), an Accounting System must track the flow of data related to all the cash flows that affect an organization.

What is accounting system?An accounting system is a collection of accounting operations with built-in controls. The purpose of an accounting system is to keep track of corporate transactions, aggregate those transactions into reports that decision-makers can use to monitor, evaluate, and enhance operations.A completely paper-based accounting system is possible, however this is typically only the case with very small enterprises. Accounting software that is available off the shelf is typically the foundation of accounting systems, with any additional procedures required for data entry.An accounting system typically covers all of an organization's key functional areas, such as the acquisition of goods and services, The sale of those same goods and services, the payment of wages to employees, and financing activities like borrowing money, selling stock, and paying interest to lenders. Accounts payable, billings and accounts receivable, fixed assets, inventories, and payroll are the specific parts of an accounting system. Each of the aforementioned modules may have specialized accounting professionals allocated to it, depending on the amount of transactions being processed.

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motivational interviewing was developed by as he demonstrated his motivational techniques to norwegian student interns.

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Motivational interviewing was developed by William Miller as he demonstrated his motivational techniques to Norwegian student interns.

Life motivation is derived from the verb “motivate,” which means “pass.” it's far the burning choice that compels you to do so. it's so deeply intertwined with what you trust to be actual and proper in existence that it actions you from an easy desire to a second of selection.

Motivation is the force to gain your desires or wishes. Motivation is vital to interrupt antique behavior and to broaden healthy ones. Many people conflict with getting and staying prompted, particularly in the event that they have intellectual health conditions inclusive of depression or tension.

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kuzio corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 150 100% variable expenses 90 60% contribution margin $60 40% the company is currently selling 7,100 units per month. fixed expenses are $185,000 per month. the marketing manager believes that a $5,900 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?

Answers

The overall effect on the company's monthly net operating income of this change is $(100) (Negative).

 Current                    Proposed

Unit sales 7100 (7100+110) =7210

Sales (7100*150) =1065000 (7210*150) =1081500

Variable expenses (7100*90) =639000 (7210*90) =648900

Contribution margin 426000 432600

Fixed expenses 199,000 (199,000+6700) =205700

Net operating income 227000 226900

Hence decrease in net operating income=227000-226900

=$(100) (Negative)

Gross margin is the quantity of earnings left after subtracting the value of products offered from revenue, even as contribution margin is the quantity of earnings left after subtracting variable charges and budgeting from revenue.

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what was the percentage return on a non-dividend-paying stock that was purchased for $40.00 and then sold after one year for $39.00?

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Percentage return on a non-dividend-paying stock that was purchased for $40.00 and then sold after one year for $39.00 is -2.50%

% return on a stock= -2.50%

% return= Sale price -Purchase Price/Purchase Price

= $39-$40/$40

= -2.50%

The ownership certificates of any corporation are referred to as "stocks" in general. On the other hand, a share alludes to the stock certificate of a specific business. A shareholder is someone who owns stock in a specific corporation. Stocks come in two varieties: common and favored.

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interperiod equity and accountability are two basic ingredients of the governmental accounting system; however, to be more accountable budgets requires close to cash accounting while accrual basis accounting lends more to the interperiod equity concept but calls for the modified accrual basis. this is referred to as the government accounting dilemma. this is a false statement! this is a true statement!

Answers

Interpterion fairness and duty are simple elements of the governmental accounting system; True.

The required details for Accountability in given paragraph

"Interpterion Equity" and "Accountability" are simple elements of the governmental accounting system. Where, "Interpterion Equity" emphasizes the duty of Government to reveal whether or not the Revenue in Current 12 months is enough to pay for the blessings offering within side the Current 12 months, or whether or not destiny taxpayers will required to hold the burdens for offerings formerly provided and "Accountability" locations a more responsibility on Government concerning the Budgeted sales and allotted expenditures. Budgeting in Private zone isn't always mandatory, and they may use it as a device for economic planning, however in Government organizations Budgeting is used for Financial Discipline, and the tasks which had been undertaken need to be fulfilled with within side the barriers of the budgeted expenditure.

If it deviates, right clarification is to be made, due to the presence of the function called "Accountability".

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when solving for pv of an annuity, the formula is based on given information which includes the interest rate, compounding periods, and what?

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The formula is based on the information that is provided, such as the interest rate, compounding intervals, and Payment anticipated from the annuity, when calculating the PV of an annuity.

The purpose of an annuity, a long-term investment provided by an insurance company, is to lessen your chance of outliving your income. Your purchase payments (what you give) are transformed into recurring payments that may last a lifetime through annuitization.

Given a specific rate of return, or discount rate, the present value of an annuity is the current value of the future payments from an annuity. The present value of the annuity decreases as the discount rate increases.

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Guero brought his proposal to poté before the meeting saying, "i’m sure you have some ideas on this, and we could try to get them incorporated upfront. " which influence tactic is guero using?.

Answers

As Guero brought his proposal to poté before the meeting by saying "i’m sure you have some ideas on this, and we could try to get them incorporated upfront", the influence tactic that Guero is using is known as consultation.

What is an influence tactic?

In an organization, an influence tactics refers to those strategies that leaders can use to change their employees’ attitudes, values, or behaviors. An actual tactics that the leaders use vary according to the situation and the desired outcomes. For example, the middle management leaders use different tactics to influence their superiors and subordinates.

A Consultation, as an influence tactic, is the most democratic and collaborative of tactics and requires involving people in strategic planning and decision-making. It is is also a highly effective pull tactic.

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for a monopolist, the market demand curve: a is also the demand for the monopolist's product. b is not important since the monopolist is the only producer. c is more elastic than the demand curve facing a perfectly competitive firm. d must be horizontal. e is equal to the monopolist's mr curve.

Answers

Option c.) is more elastic than the demand curve facing a perfectly competitive firm as the demand curve or the AR curve of a perfectly competitive firm is parallel to the horizontal axis, perfect elastic is the correct answer.

This means that the company does not control the price. The company assumes a price and sells the quantity of the product at that price. In a perfectly competitive market, a single firm faces a demand curve with infinite elasticity. In a perfectly competitive market, firms do not fix prices, but choose levels of production at which marginal costs equal market prices.

Under conditions of perfect competition, a firm can sell any quantity of goods at the prevailing price, so the firm's demand curve is perfectly elastic. So even a small price increase will result in zero demand. This suggests that the company does not control prices.

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When nikki passes the first management quiz with flying​ colors, she credits her dedication and intellect. When she fails the first​ test, she blames it on a poorly worded test. This is an example of the​ ________ bias.

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This is an example of a self-serving, bias.

What is a self-serving bias?

Any cognitive or perceptual process that is skewed by the desire to uphold and promote one's self-esteem or the propensity to perceive oneself in an excessively positive light is known as a self-serving bias. The tendency for people to seek out information and utilise it to further their own interests is known as the self-serving bias. In other words, people frequently act in ways that others may perceive as immoral or unjustifiable just to promote their own interests. The prevalent practise of taking credit for positive occurrences or outcomes while blaming external sources for poor ones is known as a self-serving bias. This mental bias enables you to safeguard your self-worth. You gain confidence by attributing favourable circumstances to personal traits.

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What type of account is discount on bonds payable and what is its normal​ balance?.

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When a company issues bonds at a price below par, the account "discount on bonds payable" is debited. The account is a contra-liability account with a typical debit balance.

What is a contra-liability account?A contra liability account in finance is one that has a debit made against it with the specific intent of offsetting a credit made to another liability account. Liabilities are reduced by contra liabilities, which have a negative balance. In other words, an asset or liability's book value is modified using the contra liability account.A "discount on bonds payable" account is debited when a corporation releases bonds at a price lower than the par value. The account has a typical debit balance and is a contra-liability account.

Therefore, when a company issues bonds at a price below par, the account "discount on bonds payable" is debited. The account is a contra-liability account with a typical debit balance.

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a company sells merchandise to a customer on credit. the journal entry that the company makes to record this sale would include a

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A company sells merchandise to a customer on credit. The journal entry that the company makes to record this sale would include a credit to a sale account.

The credit journal entry refers to journal entry which is recorded by the company in its sales journal when the firm makes any sale of the inventory to a third party on credit. Then, the debtor’s account or account receivable account is debited with corresponding credit to the sales account.

A credit entry is used to decrease the value of an asset or increase the value of a liability.

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Answer:Credit

Explanation: got correct on my hw

All of the following riders can increase the death benefit amount EXCEPT:_____.
a) Cost of living b) Waiver of Premium c) Accidental Death Rider
d) Guaranteed Insurability

Answers

All of the following riders can increase the death benefit amount except b) Waiver of Premium.

What can increase the death benefit?

The death benefit given from insurance policies can be increased depending on a number of things . One of them is the cost of living. When the cost of living is high, it means that the death benefit given might not be able to adequately cover the beneficiaries . As a result , the death benefit can increase to compensate.

There is also the accidental death rider which is when the death of the insurance holder is so sudden, that adequate plans were not made to cover the beneficiaries . The guaranteed insurability rider is also another rider that can lead to a higher death benefit . A Waiver of Premium, however, cannot lead to death benefits being higher .

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buck owns five acres of land in california. on the land buck has a house and a toolshed. there are ten large maple trees around the house. the real property includes

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Buck owns five acres of land in California. on the land, the buck has a house and a toolshed. there are ten large maple trees around the house. the real property includes the land only.

Real estate is property along with land and the buildings on it, in conjunction with its herbal resources together with crops, minerals or water;

immovable belongings of this nature; an interest vested in this an item of real belongings, homes or housing in popular. actual estate is a shape of real belongings, which means that it is something you very own this is connected to a bit of land. it can be used for residential, industrial or industrial functions, and commonly consists of any resources on the land along with water or minerals. There are 3 essential sorts of real property homes: vacant land, residential homes, and commercial residences.

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Which of these household purchases will be counted as part of consumption in a country’s gross domestic product?.

Answers

“Although part of your

question is missing, you might be referring to this full

question: (pick more than 1)

a) a newly constructed home

b) a new car for personal use

c)  shares of a company's stock

d)  a new haircut

e)  a government-issued savings bond

f)  a used dresser

a new haircuta new car for personal use

Production refers to the act of creating the product or services, whereas consumption refers to the acts that deplete the resource we had to obtain a good or service.

In order to obtain a new haircut, we must expend the value of our resources (cash). Since we are not using cars to make money, purchasing a car for personal use is also regarded as an investment.

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Which of these household purchases will be counted as part of consumption in a country’s gross domestic product?

(pick more than 1)

a) a newly constructed home

b) a new car for personal use

c)  shares of a company's stock

d)  a new haircut

e)  a government-issued savings bond

f)  a used dresser

the $1,000 face value abc bond has a coupon rate of 6%, with interest paid annually, and matures in 3 years. if the bond is priced to yield 4%, what is the bond's value today?

Answers

The $1,000 face value ABC bond has a coupon rate of 6%, with interest paid annually, and matures in 3 years. If the bond is priced to yield 4%, then the bond's value will be  $1056.014.

Bond price is the discounted present value of the future cash flow that a bond will produce. It is the total of the present values of all anticipated coupon payments plus the par value at maturity. The known future cash flows must simply be discounted in order to get the bond price.

Bond prices decline in response to an increase in interest rates, which raises the yields on older bonds and places them in the same category as newly issued bonds with higher coupons, and vice versa.

Coupon Payment (C) = 1000 * 6% = $60

Total periods remaining (n) = 3

YTM = 4%  

Bond Price = 60 * [( 1 - (1+0.04)^3) / 0.04]  + 1000 / (1+0.04)^3

Bond Price  = $1056.014

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In a rural town of york springs, there was only one grocery store and just one gas station. How would you describe these businesses?.

Answers

Natural monopolies would you describe these businesses. Hence, option C is correct.

What is Natural monopolies?

If one company can serve a market more affordably than any combination of two or more enterprises, that market has a natural monopoly.

As an illustration, the utilities sector is a natural monopoly. To cities and towns across the nation, utility monopolies offer water, sewage, electricity transmission, and energy distribution services including retail natural gas transmission.

Natural monopolies are frequently regulated to prevent price increases by the company, particularly when the company offers a necessary good or service, like power or water.

Thus, option C is correct.

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The options is missing-

A) Active competitors

B) Competitive companies

C) Natural monopolies

D) Price-controlling oligopolies

economists who are in favor of smaller government tend to prefer when expansionary policy is needed to raise aggregate demand

Answers

Economists who are in favor of smaller government tend to prefer tax cuts,  when expansionary fiscal policy is needed to raise aggregate demand.

Tax reductions and higher government spending are the two primary manifestations of an expansionary fiscal policy. Both of these measures aim to boost overall demand while adding to deficits or reducing budget surpluses. They are typically used in recessions to accelerate recovery or in times of recessionary panic to prevent it.

Fiscal policy is viewed by classical macroeconomics as an effective tactic the government can employ to balance out the natural decline in spending and economic activity that occurs during a recession. Consumers and corporations reduce spending and investments as business conditions deteriorate. This budgetary restriction worsens the state of the company's operations and starts a vicious cycle that can be challenging to break.

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mohave corp. is considering outsourcing production of the umbrella tote bag included with some of its products. the company has received a bid from a supplier in vietnam to produce 8,000 units per year for $7.50 each. mohave has the following information about the cost of producing tote bags: direct materials $ 3 direct labor 2 variable manufacturing overhead 1 fixed manufacturing overhead 2 total cost per unit $ 8 mohave has determined that all variable costs could be eliminated by outsourcing the tote bags, while 60 percent of the fixed overhead cost is unavoidable. at this time, mohave has no specific use in mind for the space currently dedicated to producing the tote bags. required: 1. compute the difference in cost between making and buying the umbrella tote bag. 2. based strictly on the incremental analysis, should mohave buy the tote bags or continue to make them? 3-a. suppose that the space mohave currently uses to make the bags could be utilized by a new product line that would generate $10,000 in annual profits. recompute the difference in cost between making and buying the umbrella tote bag. 3-b. does this change your recommendation to mohave?

Answers

1. The computation of the difference in cost (Incremental Costs) between making and buying the umbrella tote bag is as follows:

Incremental Analysis:

                                                    Make         Buy       Difference

Incremental costs:

Direct materials    $3

Direct labor             2

Variable overhead 1

Fixed overhead  $0.80

Total avoidable costs $6.80  $54,400   $60,000    $5,600

2. Based strictly on the incremental analysis, Mohave should not buy the tote bags but continue to make them because it incurs more incremental costs buying.

3a. The computation of the difference in cost (Incremental Costs) between making and buying the umbrella tote bag is as follows:

Incremental Analysis:

                                                    Make         Buy       Difference

Incremental costs:

Direct materials    $3

Direct labor             2

Variable overhead 1

Fixed overhead  $0.80

Total avoidable costs $6.80  $54,400   $50,000    $4,400

3b) The recommendation at No. 2 above changes with the generation of $10,000 in profits from the alternative use of the facility.

Production units = 8,000

Outside supplier's cost per unit = $7.50

Total purchase cost = $60,000

Total purchase cost with alternative profit = $50,000 ($60,000 - $10,000)

Internal production costs:

Direct materials $3

Direct labor 2

Variable manufacturing overhead 1

Fixed manufacturing overhead 2

Total cost per unit $ 8

Unavoidable fixed costs = 60%

Avoidable fixed costs = 40% = $0.80 ($2 x 40%)

Unavoidable fixed cost per unit = $1.20

Total unavoidable fixed cost = $9,600 (8,000 x $1.20)

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How many local restaurants does mcdonalds have and how many people are served there on a daily basis?.

Answers

Mcdonald's has approximately 33,000 local restaurants and on a daily basis serves 68,000,000 people.

using the midpoint method: in the above table, the cross price elasticity of demand for good x with good y when py falls from $20 to $18 is

Answers

The cross price elasticity of demand for good x with good y when py falls from $20 to $18 is 1

Cross-price elasticity = % Change in demand for X / % Change in price of Y

= [(90 - 100) / 100] / [$(18 - 20) / $20]

= (-10 / 100) / (-2 / 20)

= 1

Cross-price elasticity quantifies how sensitive a product's demand is to a change in the price of the related product. Many products on the market have relationships with one another. This could imply that a product's price change could have a positive or negative impact on the demand for another product. When it comes to substitutes, a rise in price of one substitute drives up demand for the alternative product. Because they always want to maximize utility, consumers frequently do this. The perceived satisfaction increases with decreasing expenditure.

The mirroring effect is also shown by a rise in demand for the replacement product when the price of the competing product is lowered. The alteration will either have a detrimental or beneficial impact in either of these situations.

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________ are formally defined, standardized processes that involve day-to-day operations.

Answers

Daily operations are part of structured processes, which are clearly defined, standardized processes.

Inputs and outputs for structured processes are well specified, and the actions necessary to finish the process always take place in the same order. Additionally, the components of the process, including people, tools, data, and time, are clearly identified and arranged.

Flexible, unstructured, and adaptive procedures typically entail managerial decisions and actions that are more general in nature.

Participants can apply a consistent and comparable method when the process is structured. It makes it simpler to evaluate what is done well, what is done incorrectly, and how that consistent process could be changed to provide better results.

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Specific promotional tools used in​ __________ include​ stories, sponsorships,​ events, and web pages.

Answers

Specific promotional tools used in public relations include​ stories, sponsorships,​ events, and web pages.

Which of the following is the most used public relations tool?Press releases, news conferences, and publicity are some of the most widely utilized PR tools.Positive PR is also generated by sponsorships, product placements, and social media. PR Tools are :  HubSpot's Public Relations Kit, Prowly ,Muck Rack.Meltwater ,Prezly, Mention, Coverage Book, CisPR ToolsPublic relations is an important component of the promotional mix.Unlike paid marketing initiatives such as advertising your company, public relations focuses on earned media and might include unpaid communication methods.Public relations is all about managing perceptions – how people see your company. Public relations is an important component of the promotional mix.Unlike paid marketing initiatives such as advertising your company, public relations focuses on earned media and might include unpaid communication methods.Public relations is all about managing perceptions – how people see your company.

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if the company uses the lifo pepetual invontory system what would be the cost of the ending inventory

Answers

If the company uses the LIFO perpetual inventory system then the cost of the ending inventory is net income should be understood when cost of goods sold is overestimated.

Ending inventory is the worth of goods that are still available for purchase at the end of an accounting period. It consists of the initial stock plus net purchases less cost of goods sold. Inventory purchases that are considered "net purchases" have had any returns or discounts subtracted. Even when the total number of inventory units at the end of each accounting period is the same, the inventory valuation method used has an effect on the final inventory value. When there are rising prices or inflationary pressures, the FIFO (first in, first out) technique is chosen since it produces a higher ending inventory valuation than LIFO (last in, first out). In light of various business situations, some companies purposefully use LIFO or FIFO strategies. Performing a physical count at the end of each month and then valuing the inventory using a method like LIFO, FIFO, or Weighted Average Method are the two most straightforward ways to determine closing inventory. The majority of the time, it is not feasible to do a physical count. As a result, ending inventory is estimated using an estimation method.

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a less-established company, or a company with a high debt to equity ratio, would be considered a riskier investment to the lender. which principle attests to this axiom? multiple choice risk/return trade-off cost-benefit analysis compensating balance concept direct relationship principle

Answers

Lenders would view a less seasoned business or one with a high debt to equity ratio as a riskier investment. Risk/return trade-off is an axiom that is supported by principle.

Which capital structure theory results in a target debt ratio?

According to the trade-off theory of capital structure, a business decides how much debt and equity financing to use by weighing the advantages and disadvantages.

What does a government- or a company-issued long-term debt obligation look like?

A bond is a certificate that symbolizes the debt obligation of the bond issuer, which could be a business or the government, to the investor-bondholder.

Which of the following describes debt that is issued without specific collateral being put up as security?

unsecure loans

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