The unemployment problem in an economy may be understated by the unemployment rate due to option(b)i.e, discouraged workers.
According to the OECD, unemployment refers to those over a particular age who are currently seeking employment but are not employed or self-employed. The unemployment rate, which is used to determine the degree of unemployment, is calculated using the number of unemployed people as a percentage of the labor force.
The unemployment rate is the proportion of the labor force that is employed that is unemployed (the labor force is the sum of the employed and unemployed). The unemployment rate is calculated as (Unemployed Labor Force) x 100.
Despite the fact that no single number can accurately capture all the nuances of the situation of the labor market, the unemployment rate is one of the most important economic indicators.
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The complete question is:
The unemployment problem in an economy may be understated by the unemployment rate due to
A- people lying about seeking a job.
B- discouraged workers.
C- job candidates with one offer but waiting for more.
D- over-employed workers.
E- none of the answers listed.
After zappos. Com identified the needs of its target customer segment, what two marketing actions did the company take to fulfill the needs of its target customer?.
Two marketing actions the company takes to meet the needs of its target customers are offering fast shipping and free returns and offering a large stock of shoes.
Marketing strategy is a way for a company to achieve its goals, because the potential to sell a proposition is limited to the number of people who know about it.
Marketing Strategy Objectives
To improve the quality of coordination within the marketing team.To measure marketing results based on applicable performance standards.To provide a logical basis for any decision making.To improve the ability to adapt in case of changes in marketing.Marketing Strategy Function
Increase motivation to think far ahead.More effective and targeted marketing coordination.Can formulate company goals to be achieved.Supervision of marketing activities is more effective on work performance standards.You can learn more about Marketing strategy here brainly.com/question/15585962
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Those who wrongfully disclose individually identifiable health information can be fined up to what amount per calendar year?
a. $50,000
b. $250,000
c. $500,000
d. $1,500,000
Those who wrongfully disclose individually identifiable health information can be fined up to $1,500,000 per calendar year.
What are the penalties of HIPAA violations?
HIPAA or The Health Insurance Portability and accountability Act of 1996 extends a lot of requirements to safeguard PHI or Protected Health Information amnd to strictly control when PHI is divulged.
The penalities extended for HIPAA violations are issued by the Department of Health and Human services, state attorney general and the office of civil rights.
The entities covered are asked to adopt a corrective action plans for the procedures and policies upto the given standards which is demanded by HIPAA
The minimum fine for willful violations of HIPAA Rules is $50,000
Those who wrongfully disclose individually identifiable health information can be fined up to $1,500,000 per calendar year.
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When apple inc. , the flows are a ______ from firms to households and a ______ from households to firms.
When apple incorporated , the flows are a money flow from firms to households and a real flow from households to firms.
What is money flow?Money flow is calculated by averaging the high, low and closing prices, and multiplying by the daily volume. Comparing that result with the number for the previous day tells traders whether money flow was positive or negative for the current day. Positive money flow indicates that prices are likely to move higher, while negative money flow suggests prices are about to fall.To learn more about money flow, refer: https://brainly.com/question/14560938?referrer=searchResults
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The table below shows the typical hours worked by employees at a company. A salaried employee makes $50,000 per year. Hourly employees get paid $20 per hour, but get $30 per hour for each hour over 40 hours.
Sun.
Mon.
Tues.
Wed.
Thurs.
Fri.
Sat.
0
8
8
9
9.5
7.5
4
Which of the payment options would you recommend to a new employee?
a.
Either one. Hourly and salaried employees earn the same amount per week.
b.
Hourly pay. Hourly employees make more per week than salaried employees.
c.
Salaried pay. Salaried employees make more per week than hourly employees.
d.
There is not enough information given to compare weekly earnings.
The recommended salary method would be C. Salaried pay. Salaried employees make more per week than hourly employees.
What is a Salary?A salary is a compensation that is paid to employee for their services taken, the employee earns this income which is known as the salary and paid at the end of the month.
A salaried employee makes $1,042 per week ($50,000 / 12 months / 4 weeks per month)
Hourly employee is paid $980 per week (40*$20) + (6 * $30) (8+/8+9+9.5+7.5+4) - 40 hours = 6 hours
So the salaried employee makes more salary per week than hourly.
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Answer:
It is C
Explanation:
If+your+short-term+interest+rate+(the+rate+on+your+current+debt+is+12.1%,+then+your+bond+rate+(the+rate+on+your+long-term+debt)+is:_________
If your short-term interest rate (the rate on your current debt) is 12.1%, then your bond rate (the rate on your long-term debt) is 13.5%.
Bondholders will finance up to 80% of the value of your plant and equipment (the capacity and automation of the Production Department).
Each bond issue provides investors a coupon, or annual interest payment. If the face amount or principle of bond 12.6S2011 is $1,000,000, the holder will get a payment of $126,000 every year for the next ten years.
At the end of the tenth year, the holder would also get the $1,000,000 principle.
Every year, your company is assigned a credit rating ranging from AAA (best) to D. (worst).
Ratings in Capstone are calculated by comparing current debt interest rates to the prime rate.
The interest rate on new bonds will be 1.4% higher than the current debt interest rate. If your current loan interest rate is 12.1%, the bond rate is 13.5%.
Hence, the answer is 13.5%.
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What+is+the+expected+real+rate+of+interest+for+an+account+that+offers+a+12%+nominal+rate+of+return+when+the+rate+of+inflation+is+6%+annually?
mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus
On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty:
• The supplies account balance on March 31 is $5,620, the supplies on hand on March 31 are $1,290.
The appropriate journal entries to record the transaction is: Debit Supplies expense $4,330, Credit Supplies $4,330.
Journal entriesa. Debit Supplies expense $4,330
($5,620- $1,290)
Credit Supplies $4,330
b. Debit Unearned rent $1,250
($5,000/4 months)
Credit Rent earned $1,250
c. Debit Wages expense $2,290
Credit Wages payable $2,290
d. Debit Accounts receivable $16,825
Credit Fees earned $16,825
e. Debit Depreciation expense-Office equipment $4,600
Credit Accumulated depreciation-Office equipment $4,600
Therefore the appropriate journal entries to record the transaction is: Debit Supplies expense $4,330, Credit Supplies $4,330.
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The complete question is:
On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty:
a. The supplies account balance on March 31 is $5,620, the supplies on hand on March 31 are $1,290.
b. The unearned rent account balance on March 31 is $5,000 representing the receipt of an advance payment on March 1 of four months’ rent from tenants.
c. Wages accrued but not paid at March 31 are $2,290
d. Fees accrued but unbilled at March 31 are $16,825.
e. Depreciation of office equipment is $4,600.
Required:
Journalize the adjusting entries required on March 31.
In order to gather comparison ratings of items in a survey, it is important to ______.
In order to gather comparison ratings of items in a survey, it is important to Use the same scale for each item
What is survey?
A survey is a set of questions used in human subject research with the goal of gathering specific information from a certain population. Surveys can be carried out via the phone, by mail, online, at street corners, and even in shopping centers. It gives you information that represents people's attitudes and behaviour. You can examine the representativeness of the client experience with the aid of surveys.
It helps to locate the problems and resolve them. You can use the survey results as a starting point for data-driven business choices. Surveys can be used to determine how representative each person's opinions and experiences are. When conducted properly, surveys offer precise data about people's beliefs and actions that can be utilized to inform significant decisions.
By dividing by the sample standard deviation and subtracting the sample mean, it is normal practise to standardize the two variables, A, and B, to put them on the same scale.
Hence, In order to gather comparison ratings of items in a survey, it is important to Use the same scale for each item
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A+stock+quote+indicates+a+stock+price+of+$60+and+a+dividend+yield+of+3%.+the+latest+quarterly+dividend+received+by+stock+investors+must+have+been+______+per+share.+multiple+choice+$0.55+$1.80+$1.25
0.55 would be the Dividend Yield as if calculated by
Dividend Yield= Price Per Share / Annual Dividends Per Share
What Is the Dividend Yield ?
A financial ratio (dividend/price) called the dividend yield, which is stated as a percentage, demonstrates how much a firm pays in dividends annually in relation to the price of its stock.
Price/Dividend, often known as the dividend payout ratio, is the counterpart of dividend yield.
The dividend yield is a projection of a stock investment's return on dividends alone. The yield will increase when the price of the stock decreases, assuming that the dividend is not increased or decreased. In the opposite scenario, it will decrease when the stock price increases. Because dividend yields fluctuate in relation to stock prices, they may appear disproportionately high for stocks that are depreciating rapidly.
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Bob is interested in examining the relationship between the number of bedrooms in a home and its selling price. After downloading a valid data set from the internet, he calculates the correlation. The correlation value he calculates is only 0. 5. What does bob conclude?.
Bob is interested in examining the relationship between the number of bedrooms in a home and its selling price. After downloading a valid data set from the internet, he calculates the correlation. The correlation value he calculates is only 0. 5. Bob concluded regression outputs of 0.67.
A correlation may be a relationship between two variables. The number of correlation, or relationships, are often explained in an exceedingly numerical form called a parametric statistic - defined as a numerical representation of the strength and direction of the connection.
Correlation between variables will be positive or negative. Direct correlation implies a rise of 1 quantity causes a rise within the other whereas in correlational statistics, a rise in one variable will cause a decrease within the other. A correlation may be a relationship between two variables during which both variables move within the same direction.
Therefore, when one variable increases because the other variable increases, or one variable decreases while the opposite decreases. An example of correlational statistics would be height and weight. Correlation could be a statistical measure (expressed as a number) that describes the scale and direction of a relationship between two or more variables.
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On december 27, 2022 , abc, inc receives a $5,000 deposit by a customer for some remodeling that is scheduled to be started on december 29, 2022 and completed on january 3, 2023. The company president tells the accountant to go ahead and book the $5,000 as revenue since the completion of the project will only take a few days. What is the ethical dilemma involved?.
The ethical dilemma involved here, is whether revenue should be recorded before its realization or not according to revenue realization principle.
Since, ABC, Inc received revenue on December 27, itself, it should record it on that only because according to revenue recognition principle, revenue should be recorded when it is realized or earned not when cash is realised. Means if company has made sale in this case, it has earned the revenue on sales, so it should record it in books of account no matter, cash is realised now or will be received later.
The company is in dilemma because as per revenue recognition principle it should record the revenue when it is earned means when the work will be completed i.e., on January 3, 2023 and not on date of receipt of cash means on December 27, 2022.
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You install new tires on your car that are rated to last for 40,000 miles. how many revolutions will the tires make before they have to be replaced? estimate your answer to an order of magnitude.
1 miles = 5280 feet
⇒ 40000 miles = 2.11 feet
So, approximately [tex]10^{6}[/tex] revolutions, tires make before they have to be replaced.
What is Acceleration?The rate at which an object's velocity with respect to time changes is referred to as acceleration in mechanics. It is a vector quantity to accelerate (in that they have magnitude and direction).
The direction of the net force acting on an object determines the direction of its acceleration. According to Newton's Second Law, an object's acceleration is the result of two factors working together: the object's mass, which varies depending on the materials it is made of, and the net balance of all external forces acting on it. The magnitude of an object's acceleration is inversely proportional to the object's mass.
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In the evolution of database management systems, what does optimization refer to?
In the evolution of database management systems, what does optimization refer to
a High Availability
b. Security
c. Performance
d. Scalability.
One of the three fundamental security management functions that exist in all systems is availability. The claim that a computer system is always accessible to a legitimate user is known as availability. Systems are highly available to guarantee that they function as expected when required. The capacity to build in fault tolerance is provided by availability in the products. By including hot and cold sites in the disaster recovery planning, it also ensures the backup processing.
Both the primary key and the candidate key may definitively identify the tuples in relation in a self-test with the right answers. real false definition of named column.
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Using cost-benefit analysis, a local government would decide to build a new bridge if the additional tax paid by an individual resident is greater than the additional benefit of building the bridge for all residents. The additional tax paid by an individual resident is greater than the additional benefit of building the bridge for all residents. The toll paid by an individual resident crossing the bridge is less than the resident’s benefit from crossing the bridge. The toll paid by an individual resident crossing the bridge is less than the resident’s benefit from crossing the bridge. The total costs of building the bridge are less than the total benefits from building the bridge. The total costs of building the bridge are less than the total benefits from building the bridge. The total costs of building the bridge are greater than the total benefits from building the bridge. The total costs of building the bridge are greater than the total benefits from building the bridge. Total costs are at a minimum and total benefits are at a maximum
Using cost-benefit analysis, a local government would decide to build a new bridge if total costs are at minimum and total benefits are at maximum.
Businesses utilise a cost-benefit analysis as part of a systematic procedure to determine which options to take and which to ignore. The cost-benefit analyst adds up the potential benefits anticipated from a circumstance or course of action before deducting the overall expenses related to that course of action.
Intangible benefits, costs, or consequences of a choice, such staff morale and customer happiness, can also be considered in a cost-benefit analysis.
Assessment, depreciation of future cash flow, and numerous options may all be included in a more complex cost-benefit analysis. All things being equal, it will typically be advantageous for the business to take on a project if the analysis shows more benefits than expenses.
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Imagine Joanne has an employee, Cynthia, whose only job is to restock shelves in the kitchen. Whenever Cynthia is busy she has to bend, twist, and lift to put items on the shelves over and over. Whenever she's done with her task, she often waits around for the next shipment of baking supplies to come in. How can this sort of specialization be a detriment to productivity
The act of specialization is the division of a work process into distinct tasks that are necessary to the organisation or business but cannot be carried out by a single person.
What Are the Economic Impacts of Specialization?
When the innate differences in human productivity are accentuated along different skill lines, specialization and the complementary concept of division of labour occur. A person becomes more economically specialised as they focus their productive efforts on an ever-narrower range of tasks.The most obvious economic impact of specialization is the propensity for people to choose a variety of professions that are more in line with their interests, capabilities, chances, and education.Economic agents that concentrate on a certain task become more adept at it. Because repetition and muscle memory increase productivity, both preschoolers and professional athletes practise before a game.To know more about Specialization visit:
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Business portfolio analysis and diversification analysis help an organization to answer what important strategic question?
Where do we want to go for growth? is the important strategic question.
What are the advantages of portfolio analysis in strategic management?Portfolio analysis offers the following advantages: It encourages management to evaluate each of the organization's businesses individually and to set objectives and allocate resources for each.
It stimulates the use of externally oriented data to supplement management's intuitive judgment.
Portfolio analysis is a methodical way to examine the goods and services that make up a business portfolio for an association.
All associations are engaged in multiple businesses, with the exception of the simplest and smallest.
Publishing, gatherings and gatherings, instruction and training, government representation, research, standards-setting, public relations, etc. are a few of these.
Each of these is a strategic business unit for the association (SBUs).
Each company has a portfolio of goods and services.
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Why might a wealthy society not have as much staying power as another wealthy society with highly skilled labor force
Accumulation of the capital stock is one of three primary variables that stimulate society economic growth. An economy's human capital can help it grow.
Improvements in participation rates, social wellbeing, and productivity result from increases in human capital in areas like research, education, and management, all of which support economic growth. The information, skills, and health that people invest in and amass throughout the course of their life give them the opportunity to realize their potential as contributing members of society.
Human capital development raises labor productivity, encourages technological advancements, boosts returns on investment, and makes growth society more sustainable—all of which contribute to reducing poverty.
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Castillo services paid k. castillo, the sole shareholder of castillo services, $5,000 in dividends during the current year. the entry to close the dividends account at the end of the year is?
Castillo services paid k. castillo, the sole shareholder of castillo services, $5,000 in dividends during the current year. the entry to close the dividends account at the end of the year is $5,000.
Analysis:
Debit Retained Earnings $5,000; Credit Dividends Accounts $5,000. A $5,000 debit was made from the dividend account and a credit of the same amount in cash when dividends were paid to K. Castillo. Additionally, dividends are temporary accounts, all of which need to be zero before the next quarter. Dividends have therefore been credited to bring the balance to zero and will lower the remaining retained earnings at the end of the year. Retained earning account has been debited as a result.
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Bad debt expense is recognized in the same accounting period as the revenue that is related to the receivable because:________
Bad debt expense is recognized in the same accounting period as the revenue that is related to the receivable because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems.
What Are Bad Debt Costs?
When a receivable is no longer recoverable as a result of a customer's inability to pay an outstanding debt owing to bankruptcy or other financial issues, a bad debt expense is recorded. Companies that offer credit to their clients record bad debts as an allowance for doubtful accounts, sometimes referred to as a provision for credit losses, on their balance sheet.
Bad debt costs are typically listed on the income statement as a sales and general administrative expenditure. Accounts receivable on the balance sheet are reduced when bad debts are recognized, but firms still have the right to collect money if the situation changes.
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Gordon has built a lucrative small business by purchasing inexpensive kitchen gadgets from a variety of companies in china and the far east and selling them at his booth in a popular flea market. This is an example of ________.
Gordon has built a lucrative small business by purchasing inexpensive kitchen gadgets from a companies in china and the far- east and selling them at his booth in a popular flea market. This is an example of importing
An import is an item or service that is purchased outside of its nation of origin. International trade is made up of imports and exports. A country has a negative trade balance, or a trade deficit, if the value of its imports surpasses the exports it produces.
The majority of the time, nations will import items or services that the exporting nation's own industry cannot provide as effectively or inexpensively. Additionally, nations may import goods or raw materials that are unavailable within their boundaries.
A significant percentage of the drop in jobs in manufacturing in the importing country appears to be attributable to unrestricted agreements and a dependence on imports from nations with less expensive labour. Free trade makes it easier to import goods and materials from regions with more affordable manufacturing, which lessens the need for indigenous goods.
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Which elements of a swot analysis are identified by looking at the internal resources of a company?
The SWOT (strengths, weaknesses, opportunities, and threats) analysis component examines both internal and external elements that may have an impact on your company. Your internal traits are your assets and liabilities. Threats and opportunities are factors outside of oneself.
Using SWOT analysis, a person or organization can identify their strengths, weaknesses, opportunities, and threats in relation to project planning or competitive business environments. Situational analysis or situational assessment are other names for it. The main objective of a SWOT analysis is to raise awareness of the variables that influence business decisions or the formulation of business strategies. You can find the parts of your business that are doing well by conducting a SWOT analysis. These are your crucial success factors, and they give your company an edge over the competition. You can ensure that you maintain these strengths so that you don't lose your competitive advantage by identifying them.
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Cash disbursements that have been recorded in the company's accounting records but are not yet recorded by the bank are called:________
Cash disbursements that have been recorded in the company's accounting records but are not yet recorded by the bank are called checks outstanding
What is Check outstanding?An outstanding check is one that has been written but hasn't been cashed or deposited by the intended recipient. A check's payee is the person or organization to whom it is written, whereas the payor is the body that issues the check. Another term for a check that is still in the bank's check-clearing cycle after being presented is an outstanding check.
The payor incurs a liability when a cheque is unpaid. It is important for the payor to make sure there is enough money in the account to cover the amount of the outstanding check until it is cashed, which might take weeks or even months.
Checks can be used as one of the payment methods for transactions. A check is a type of money order that gives the bank permission to move money from the payor's account to the payee's account. When the payee deposits the check, it contacts the payor's bank to request the funds, which then takes the money out of the payor's account and sends it to the payee's bank. The full amount requested is sent to the bank, which then deposits it into the payee's account.
Therefore, Check is one of the most commonly used financial instruments.
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If the equilibrium price in a market is $20, and the government imposes a price ceiling of $25, what will be the resulting market condition?
If the equilibrium price in a market is $20, and the government imposes a price ceiling of $25 and the resulting market condition is less demand of the good.
How can a market condition determined with the help of equilibrium price and price ceiling?When the price ceiling is less than the equilibrium price, then the quantity demanded will eventually exceed the quantity supplied and the higher demand will lead to shortages.
In this case the equilibrium price is less than the price ceiling which is the reversal of the above where in the demand will be less and therefore the products will be available for all the consumers.
When the price is too low than the quantity demanded increases than the supplied quantity. this leads to shortage and consumers who can afford the goods are happy as not all can get the product due to a a higher price.
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Holding all other personal characteristics-such as age, gender, and income-constant, economists would expect that.
Holding all other personal characteristics such as age, gender, and income-constant, economists would expect that people with health insurance are more likely to be overweight than people without health insurance.
Health insurance is a sort of insurance protection that covers the insured's medical and surgical costs. Health insurance can either pay the healthcare provider directly or compensate the insured for costs related to illness or damage.
A regular health insurance policy typically covers any ambulance costs incurred in the event of a medical emergency. This has a big advantage because expensive hospitals frequently charge a lot for transportation.
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In+one+town,+66%+of+adults+have+health+insurance.+what+is+the+probability+that+4+adults+selected+at+random+from+the+town+all+have+health+insurance?+round+to+the+nearest+thousandth+if+necessary.
As a result, the probability that four people will be insured in insurance is equal to 0.66 to the power of four, leaving a value of 0.1897, or nearly 0.19.
In an insurance agreement, the insurer is responsible for covering a party's losses due to specific calamities or perils. It helps the insured person or their family avoid financial loss. There are many different types of insurance policies. Life, health, homeowners, and auto insurance are the most common varieties.
A risk management tool is insurance. When you buy insurance, you get protection against unanticipated financial losses. In the event that something bad occurs to you, the insurance provider pays you or a different person of your choosing. If an accident happens and you don't have insurance,
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What+is+the+amount+of+dry+steam+flow+to+an+engine,+which+is+supplied+with+4500+kg+per+hour+wet+steam+with+a+quality+of+80%?
Final Value = 4500 × (1 + 80/100)
⇒ Final Value = 4500 × (1 + 0.8)
⇒ Final Value = 4500 × (1.8)
⇒ Final Value = 8100
Why is Steam important in Engines?The steam engine was significant because it allowed heat to be converted into motion. Now that we have this brilliant invention, we can use fuel instead of wind, water, or human strength. The Newcomen engine was once referred to be a "fire engine," in fact.The characteristics of steam made it possible to create the steam engine, which saw widespread use during the industrial revolution.In addition to transport, such as in steam locomotives, this kind of machine was used to drive other machinery.To learn more about Steam Engines, refer to:
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Debit or credit memo describing entries in the company's bank account may be enclosed with the bank statement. an example of a credit memo is:__________
Debit or credit memo describing entries in the company's bank account may be enclosed with the bank statement. an example of a credit memo is: a promissory note left for collection.
What is credit memo?
A credit memo could be a commercial record issued by a provider to the client informing the reduction of the amount that a customer owes to the seller. In case it could be a cash sale, it infers the amount of advantage that the provider owes to the customer. A credit memo is called Credit Memorandum and more popularly known as ‘Credit Note’.
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Suppose a pure discount bond promises to repay $10,000 in one year. the market interest rate is 6.6 percent, how much will the bill sell for in the market?
Consider a pure discount bond with a $10,000 interest rate over a year. 9434 is the price the bill will sell for on the market at the 6.6 percent market interest rate.
Future value, FV = 10000N
Interest rate = 6
Number of years, N = 1
Price or present value of t bill = 9434
Present value, PV = FV / (1 + R)N
PV = 10000 / (1 + 0.06)1
PV = 9433.96 or 9434
A percentage of the principal, or the amount loaned, is what a lender charges a borrower as interest rate. The annual percentage rate, or APR, is the usual unit used to express the interest rate on a loan (APR).
The amount earned from a savings account or certificate of deposit at a bank or credit union may also be subject to interest rates. Interest on these bank accounts is calculated as an annual percentage yield (APY).
The borrower is essentially charged interest for the usage of the asset. Cash, consumer goods, vehicles, and real estate are all examples of lent assets. As a result, an interest rate can be viewed as the "cost of money" because it increases the cost of borrowing the same amount of money.
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Statements that can be relied on with a fair amount of certainty and can be observed objectively are known as.
Statements which will be relied on with a fair amount of certainty and can be observed objectively are known as.----Facts.
What does one mean by a statement?
A statement is a sentence that says something is true, like "Pizza is delicious." There are other forms of statements in the worlds of the law, banking, and government. All statements claim something or make some extent . If you witness an accident, you create a statement to police, describing what you saw.
What can we mean by facts?
A fact is an indisputable observation of a natural or social phenomenon. we will see it directly and show it to others. A hypothesis is a thought that we can test with further observations. We began to gather evidence to see if our hypothesis is supported.
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Why do people often want to insure fully against uncertain situations even when the premium paid exceeds the expected value of the loss being insured against?
Risk averse people have declining marginal utility, and this means that the pain of a loss increases at an increasing rate as the size of the loss increases.
If the price of insurance is up to the expected loss, (i.e., if the insurance is actuarially fair), risk-averse individuals will fully insure against monetary loss. The payment assures the individual of getting the identical income no matter whether or not a loss occurs.
Reluctant to require risks; tending to avoid risks the maximum amount as possible: risk-averse entrepreneurs. of or noting insured someone who invests in stocks, bonds, etc., with lower risks and customarily lower rates of return so as to minimize the likelihood of economic loss: risk-averse investors who keep on with government bonds.
Individuals and business entities choose insurance covers even when the anticipated loss is lesser than the premiums they pay to insurance companies due to the risk-averseness of most people. Risk-averse consumers always prefer insurance that's actuarially fair but not full to full insurance that's actuarially unfair - but the alternative is true for risk-loving consumers.
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