Answer:
Those local hospitality businesses can be said to be Cooperators.
Explanation:
Co-operation: Cooperation is an art, which is not so easy to be mastered. The primary purpose of the cooperation is to gain mutual benefit. Yet because not everyone can understand the true sense of forming alliances (even if some do understand), it is difficult for them to create or manage those alliances because there are several factors which affect the relationships between associates. So, to have healthy and strong cooperation there is a need to get a grasp over those influencing factors.
Now there are reasons to believe that what the analysis implies (that there is a close relationship between these 2 industries) is true. Although how? let's get into those reasons.
Both industries come in the same domain that is of consumption.Both can do their business separately without cooperating.But still, if they do cooperate they can get more than they do get separately.An example to have a close look on the relationship: Consumer A has to go to 2 different places to get these 2 different services or products, consumer B just go to the one place and get all the service as well as get the product if he desires. So, Which one would be more satisfied? Consumer B for sure.
The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,850 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,790 and direct labor cost of $770. Therefore, the amount of the applied overhead is: Multiple Choice $2,060. $2,560. $1,290. $770. $3,080.
Answer:
$1,290
Explanation:
The work in process inventory account balance is given by the sum of the direct material cost, direct labor cost and the amount of applied overhead.
If the balance is $3,850, with material cost of $1,790 and direct labor cost of $770, the applied overhead is:
[tex]O = \$3,850 - \$1,790 - \$770\\O=\$1,290[/tex]
The amount of the applied overhead is $1,290.
Anthony has arrived five minutes early for his sales call with a buying group from one of his accounts. He is the only one in the room. Before the meeting gets underway, Anthony should remember to _____.
Answer:
The correct answer is letter "A": Greet each group member as they arrive.
Explanation:
If arriving before prospective clients in a business meeting, the salesperson must show his manner and greet every possible customer on their way in. This will let them have an idea of what type of person they are dealing with and could represent a big opportunity to "break the ice" starting small talk.
A manufacturer has a monthly fixed cost of $50,000 and a production cost of $7 for each unit produced. The product sells for $16 per unit. If the manufacturer produces and sells 3,000 units per month, indicate whether he will have a profit, loss or break-even.a. Profitb. Break-evenc. Lossd. None of the above.
Answer:
The manufacturer will have a c. Loss
Explanation:
The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:
Break-even point in units = Fixed cost/(Selling price per unit-Variable cost per unit) = $50,000/($16-$7) = $50,000/$9 = 5.556 units (rounding)
The manufacturer produces and sells 3,000 units per month < Break-even point in units. Therefore, the manufacturer will have a loss
Answer:
c. Loss
Explanation:
To break even, the total units sold would result in the total cost being equivalent to the total sales. As such, break even is the point where profit/loss is nil. Where sales is more than cost, the company makes a profit, otherwise a loss.
Given fixed cost = $50,000
Production cost per unit = $7 (variable)
Selling price per unit = $16
Units sold = 3,000
Profit/loss = sales - cost
= 16(3000) - (7(3000) +50,000)
= 48,000 - 71,000
= $23,000
This is negative as such as a loss.
In the AS-AD model, cyclical unemployment occurs when: a. aggregate supply increases b. the economy is not at a short run equilibrium in the AS-AD model actual DP falls below potential real GDP in the equilibrium of the AD and short-run AS curves
Answer:
b. the economy is not at a short run equilibrium in the AS-AD model actual DP falls below potential real GDP in the equilibrium of the AD and short-run AS curves.
Explanation:
The aggregate demand/aggregate supply, or AD/AS, model is one of the fundamental tools in economics because it provides an overall framework for bringing economic factors together.
We can examine long-run economic growth using the AD/AS model, but the factors that determine the speed of this long-term economic growth rate do not appear directly.
Cyclical unemployment is relatively large in the AD/AS framework when the equilibrium is substantially below potential GDP and relatively small when the equilibrium is near potential GDP.
The natural rate of unemployment—as determined by the labor market institutions of the economy—is built into potential GDP.
Pressures for inflation to rise or fall are shown in the AD/AS framework when the movement from one equilibrium to another causes the price level to rise or to fall.
Assets are usually reported at their A. appraised value. B. historical cost. C. current market value. D. none of the above.
Answer:
B. historical cost.
Explanation:
In financial statements assets are reported at their cost of purchase or historical cost. This approach does not account for price fluctuations under present market conditions.
Historical cost is used to avoid inflating financial position of an organisation, as price changes in the market are largely temporary.
Valuation on the other hand considers an asset's fair market value.
In accounting, assets are generally reported at their original or historical cost. The historical cost principle is based on the belief that the value of money remains constant. This provides consistency and comparability in financial reporting.
Explanation:In accounting, assets are generally reported at their historical cost. This is the original cost that was paid to acquire the asset. The historical cost principle is based on the assumption that the purchasing power of money remains stable over time, which allows for consistency and comparability in financial reporting. It's important to note that although this is the standard practice, it disregards any fluctuations in the market value of an asset after it has been acquired.
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Fair value option; bond investment; effective interest [LO12-1, 12-2, 12-3, 12-4, 12-8] Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2018. Management intends to have the investment available for sale when circumstances warrant. When the company purchased the bonds, management elected to account for them under the fair value option. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2021, was $70 million.
Required:
1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2021, balance sheet? 4-b. Prepare the journal entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey’s 2018 statement of cash flows be affected by this investment assuming Fuzzy anticipates holding these investments for a sufficiently long period?
1. Record Fuzzy Monkey’s investment on bonds on January 1, 2021.
2. Record the interest revenue on June 30, 2021.
3. Record the interest revenue on December 31, 2021.
Req 4A
Invesment_________ million
Req 4B
Record any necessary entry to report the investment at the correct value on the balance sheet.
Req 5
Operating cash flow $ million
Investing cash flow $ million
Answer:
debt securities investment 80,000,000 debit
discount on debt securities 14,000,000 credit
cash 66,000,000 credit
--to record the purchase of the bonds--
cash 3,200,000 debit
discount on debt securities 100,000 debit
interest revenue 3,300,000 credit
--to record first interest collection--
cash 3,200,000 debit
discount on debt securities 105,000 debit
interest revenue 3,305,000 credit
--to record secod interest collection--
Cash flow:
-66,000,000 purchase
+ 6,400,000 interest
net -59,400,000
Balance sheet
debt securities investment 80,000,000
discount on debt securities (13,795,000)
net amount for the investment 66,205,000
Explanation:
As we pay the bonds lower than face value we recognize a discount.
Then, interest reveneu will be carrying value times market rate:
66,000,000 x 10% / 2 = 3,300,000 interest revenue
cash proceeds: 80,000,000 x 8% / 2 = 3,200,000
the difference will amortize the discount.
Then we do it again for the second one:
66,100,000 x 10% / 2 = 3,305,000
difference amortize the discount
We did not adjust for the fair value as we are using another method.
The inaccuracy of the grapevine has more to do with the message output than with the input. a. True b. False
Answer:
The answer is b. False
Explanation:
Answer:
The correct answer is letter "B": False.
Explanation:
Gravepines are mostly often incorrect beliefs spread within an organization based on the subjective ideas of the employees. The reason why gravepines are inaccurate is that they tend to be rumors, then as the input is not objective, the output or the real situation that takes place has nothing to do with the rumor.
An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis. The investment banker pays $10.50 per share to TWResearch, Inc. for the 10 million shares of stock. It then sells those shares to the public for $11.20 per share. If the investment bank can sell the shares for $9.75 per share, what is the profit (loss) to the investment banker?
Answer:
$ 7.5 million
Explanation:
The investment bank will have a loss which = ( 9.75 - 10.50 ) × 10 million = $ - 7.5 million
Answer:
= -$7,500,000 (the investment bank makes a loss of $7,500,000)
Explanation:
Step 1: Determine the profit or loss of the investment bank if it sells the shares for $11.2 per share
Agreed amount to pay to TWResearch =
$10.5 x 10,000,000= $105,000,000
Investment bank' profit = (11.2- 10.5) x 10 000 000 = $7,000,000
Step 2: However, since the investment bank can only sell the shares for $9.75, then the calculations will be as follows:
a) Agreed amount to pay to TWResearch =
$10.5 x 10,000,000= $105,000,000
b) Based on a selling price of $9.75
The profit or loss to the investment bank = the amount it sold the shares - the amount it bought the shares from the firm.
= ($9.75- $10.5) x 10 000 000
= 0.75 x 10000000
= -$7,500,000 (the investment bank makes a loss of $7,500,000)
Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $98 for such a widget and that 58,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $58.
Summit has learned that a competitor plans to introduce a similar widget at a price of $88. In response, Summit may reduce its selling price to $88. If Summit requires a 25% return on sales, what is the target cost for the new widget?
a. $88.00
b. $66.00
c. $22.00
d. $24.50
Answer:
b.$ 66
Explanation:
The question requires that Summit requires a return on sales of 25 %. To achieve that the cost of goods sold should be 75 %.
if the revised selling price is $ 88
the target cost price would be ( $ 88 * 75 %) % 66
Can you think of other analogies for sending tanks and battleships to England without getting money or an immediate debt agreement?
Answer:
The Lend- Lease Act
Explanation:
President Franklin D Roosevelt had the unlimited authority to give material aid like tanks, battleships to England without violating America's position of neutrality. This authority was given to the president when the Lend Lease Act was approved by congress in March 1941.
A pharmaceutical company announces that it has received Federal Drug Administration approval for a new allergy drug that completely prevents hay fever. The consensus analyst forecast for the company’s earnings per share (EPS) is $4.50, but insiders know that, with this new drug, earnings will increase and drive the EPS to $5.00.What will happen when the company releases its next earnings report?
Answer and Explanation:
There will be some volatility in the stock price when the earnings report is released though it is difficult to determine the impact on the stock price.
We can conclude that, the prices will eventually adjust to the announcement.
A fire has destroyed a large percentage of the financial records of the Excandesco Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 16.3 percent. Sales were $1,785,000, the total debt ratio was .33, and total debt was $658,000. What is the return on assets (ROA)
Answer:
The return on assets (ROA) of Excandesco Company is 10.921%
Explanation:
Return on assets (ROA) helps an investor see how much after-tax profit a company gained for each dollar in assets, is calculated by formula:
ROA = Net Income/ Total Assets
The total debt ratio of Excandesco was .33:
Total debt ratio = Total Debts/ Total Assets = 0.33
Total debts = 0.33 x Total Assets
From the accounting equation: Total Assets = Total debts + Total Equity
Total Equity = 0.67 x Total Assets
Excandesco Company had return on equity (ROE) of 16.3 percent.
ROE = Net income/ Equity
Net income = ROE x Equity = 16.3% x 0.67 x Total Assets = 0.10921 x Total Assets.
ROA = Net Income/ Average Total Assets = (0.10921 x Total Assets)/Total Assets = 0.10921 = 10.921%
To find the return on assets for Excandesco Company, first determine total assets using the total debt ratio and total debt. Then, use the return on equity to calculate net income. Finally, divide net income by total assets to get the ROA, which is 10.92%.
Calculating Return on Assets (ROA)
The question is asking how to calculate the return on assets (ROA) for the Excandesco Company using the given information. ROA is a profitability ratio that gives an idea of how efficient a company is at using its assets to generate earnings. It is calculated as the net income divided by the company’s total assets. Given the return on equity (ROE) of 16.3% and the total debt ratio of 0.33, we can determine the equity ratio, which is 1 - total debt ratio. Using the total debt of $658,000, we can calculate the company’s total assets and subsequently the net income.
To start, let's calculate the company's total assets (A) using the total debt ratio (D/A):
Total assets = Total debt / Total debt ratio
Total assets = $658,000 / 0.33 = $1,993,939.39
Next, we calculate equity (E) by subtracting total debt from total assets:
Equity = Total assets - Total debt
Equity = $1,993,939.39 - $658,000 = $1,335,939.39
Now, using ROE, we find the net income (NI):
Net Income = ROE * Equity
Net Income = 0.163 * $1,335,939.39 = $217,757.11
Finally, ROA can be determined:
ROA = Net Income / Total Assets
ROA = $217,757.11 / $1,993,939.39 = 0.1092 or 10.92%
Therefore, the return on assets for the Excandesco Company is 10.92%.
U.S. Interest Rates during the Credit Crisis During the credit crisis, U.S. interest rates were extremely low, which enabled businesses to borrow at a low cost. Holding other factors constant, this should result in a higher number of feasible projects, which should encourage businesses to borrow more money and expand. Yet many businesses that had access to loanable funds were unwilling to borrow during the credit crisis. What other factor changed during this period that more than offset the potentially favorable effect of the low interest rates on project feasibility, thereby discouraging businesses from expanding?
Answer:
The insufficient expected low cash flows from investment caused by low demand for goods and services by the household.
Explanation:
A recession refers to contraction of the business cycle when economic activity fall generally.
In order to get out of recession, governments usually employ macroeconomic policies like increasing government expenditure, reducing taxation, and increasing money supply. When the money supply is increased, it leads to fall in the interest rate.
Interest rate is a cost of investment; and it is expected that investment will rise when the interest rate falls. However, this was not so during the US credit crisis despite that U.S. interest rates were extremely low majorly due to low demand.
During the credit crisis, there was a general low demand for goods and services by the household. This made businesses to be discouraged from investing in new projects, because it was expected that low demand will lead low cash flows from the investment.
The insufficient expected low cash flows was therefore the major factor that discouraged businesses to borrow cheap funds that were allowed by the extremely low interest rate.
I wish you the best.
Pure economic rent is:
a. The payment to factors whose supply is perfectly inelastic.
b. Economic profits. a payment made to land.
c. The payment to factors owned by entrepreneurs.
d. The payment to factors whose supply is perfectly elastic.
Answer:
A. The payment to factors whose supply is perfectly inelastic.
Explanation:
This means that this factor of production need to be purchase regardless of the price change, otherwise the business operation couldn't continue.
One example of a pure economic rent is the cost of latex for rubber glove manufacturer. Since latex is the main ingredients for the product, that company still have to buy it even if the price of the latex is increasing (inelastic) . Otherwise, the company need to shut down its operation.
A manager checked production records and found that a worker produced 156 units while working 40 hours. In the previous week, the same worker produced 105 units while working 30 hours. a. Compute Current period productivity and Previous period productivity. (Round your answers to 2 decimal places.) Current period productivity Units / hr Previous period productivity Units / hr b. Did the worker's productivity increase, decrease, or remain the same? (Round your intermediate calculations and final answer to 2 decimal places. Omit the "%" sign in your response.) Worker's productivity by %
To compute the current and previous period productivity, divide the units produced by the hours worked. The worker's productivity increased from the previous period to the current period by 11.43%.
Explanation:To compute the current period productivity, divide the number of units produced in the current period by the number of hours worked: 156 units / 40 hours = 3.90 units/hr. To compute the previous period productivity, divide the number of units produced in the previous period by the number of hours worked: 105 units / 30 hours = 3.50 units/hr.
The worker's productivity increased from the previous period to the current period. The worker productivity increased by 3.90 units/hr - 3.50 units/hr = 0.40 units/hr. To express this change as a percentage of the previous period productivity, divide the increase by the previous period productivity and multiply by 100: (0.40 units/hr / 3.50 units/hr) × 100 = 11.43%.
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XYZ Publisher can produce 200 books in a standard 8-hour day. It uses 5 employees. The average labor cost is $25/hour. A book requires $15 of raw materials.
If the books can be sold at a price of $30 each, what is the multifactor productivity?
A) 0.5 B) 1.0 C) 1.5 D) 2.0
Answer:
C) 1.5
Explanation:
multifactor productivity
= total revenue per day/total cost per day
= (30*200)/[(5*8*25)+(15*200)]
= 6000/4000
= 1.5
Therefore, The multifactor productivity is 1.5
The Multi-factor Productivity (MFP) for XYZ Publisher is calculated by dividing the total output ($6000 in sales revenue) by the total input costs ($4000), resulting in an MFP of 1.5. This corresponds to option C.
Explanation:Multi-factor productivity (MFP) is a measure of the efficiency of all inputs to a production process. It is calculated by dividing the total output by the weighted average of the inputs. In this case, XYZ Publisher's total output is the total sales revenue, which is the number of books produced multiplied by the selling price per book. The inputs are labor and raw materials. The costs associated with these inputs include the labor cost and the cost of raw materials. Using the information given:
Output (Sales revenue) = 200 books × $30/book = $6000Labor costs = 5 employees × $25/hour × 8 hours = $1000Material costs = 200 books × $15/book = $3000Total input costs = Labor costs + Material costs = $1000 + $3000 = $4000MFP = Output / Total input costs = $6000 / $4000 = 1.5Therefore, the multi-factor productivity for XYZ Publisher is 1.5, which corresponds with option C.
Assume Fiona is willing to pay $8 for a pizza cutter. Tim also wants one, but is only willing to pay $6 for one. At a pizza baker's convention, Fiona buys the last pizza cutter at the market price just before Tim can buy it. Tim contacts the convention organizers and complains about missing out on the last pizza cutter. The organizers refund Fiona for the pizza cutter and allow Tim to buy it at the market price. What happens as a result of the organizers refund
Answer
The question is incomplete; assuming that the market price is $5.
The answer will be consumer surplus decreases.
Explanation:
Consumer surplus is a measure of consumer welfare. It is measured as the difference between what customers are willing and able to pay for a good and the price they actually pay.
Fiona originally bought the pizza cutter at the market price. When the organizers refunded Fiona and let Tim buy it at the market price, they interfered with the market mechanism. If Tim is now willing to pay more than $6, it could be due to the Endowment Effect.
Explanation:In this scenario, the market price determined who buys the pizza cutter. If the market price was more than $6 and less than $8, it makes sense Fiona bought it first. However, by arranging a refund and letting Tim buy it, the organizers interfere with the market mechanism. Interestingly, if Tim is allowed to buy at the market price which is more than what he is willing to pay ($6), it might be assumed that he values it more now. This might be an example of the Endowment Effect, where people value things more once they own them.
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The three industrialized nations that do not provide paid maternity leave by law are Select one: a. Canada, Italy, and Japan. b. Australia, Swaziland, and the United States. c. South Africa, Italy, and Sweden. d. South Africa, Canada, and the United States.
Answer:
b. Australia, Swaziland, and the United States.
Explanation:
The three industrialized nations that do not provide paid maternity leave by law are Select one: Australia, Swaziland, and the United States.
The United States has been said to be the stingiest of all developed nations as it leads the way as the richest developed country but still don't guarantee paid maternity leave.
Most others including Canada, mandates paid time off to women after they give birth.
Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel?
An 18% wage cost increase will likely cause a decrease in steel supply, resulting in an increased price and decreased quantity of steel sold, according to the law of supply and demand.
Explanation:The likely economic effect on the market for steel when steel mill wage costs increase by 18 percent over a year will probably involve a shift in the supply curve. This happens because of the assumption that wage costs are a significant component of the total production cost to produce steel. When wage costs rise, it becomes more expensive for steel mills to produce the same amount of steel, causing a decrease in the supply.
This decrease in supply while demand remains constant will lead to an increase in the price of steel and a decrease in the quantity of steel sold (following the law of supply and demand).
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An 18 percent increase in steel mill wage costs is likely to result in higher steel prices, potentially impacting demand and global competitiveness in the steel market.
When steel mill wage costs increase by 18 percent over a year, the likely economic effect on the market for steel can include the following:
Increased Production Costs: Steel producers will face higher labor costs, which can lead to an increase in the cost of producing steel products.
Price Increase: To offset the higher production costs, steel producers may raise the prices of their steel products. This could lead to an increase in the market price of steel.
Reduced Demand: Higher steel prices can potentially reduce the demand for steel, particularly among industries that are sensitive to price changes, like construction and manufacturing.
Impact on Competitiveness: Steel producers may face challenges in international markets if their prices become less competitive compared to steel from other regions.
Supply and Demand Dynamics: The specific impact on the steel market will depend on factors such as the overall supply and demand for steel, the global economic conditions, and the elasticity of steel demand.
In summary, an 18 percent increase in steel mill wage costs is likely to result in higher steel prices, potentially impacting demand and global competitiveness in the steel market.
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Marie and Ethan form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $100, 800 in exchange for 400 shares of stock. I than contributes an installment note receivable (basis $25,000; lair market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $162, 560; fair market value $203, 200) in exchange for 1, 600 shares. If an amount is zero, enter "0". Marie has income of_________ $ and________ $ basis in her 400 shares of stock and Ethan has income of __________$ and _______$ basis in his 1, 600 shares of stock.
Answer:im not gay
Explanation:
but i still love you
Marie reports income equal to $100,800 with a basis in her shares of the same amount, while Ethan generally would record no income from the transaction, with a basis in his shares equal to the aggregate basis of the contributed assets ($237,560).
The question concerns the tax implications and basis calculations for contributions to a corporation by individuals. Marie performs personal services valued at $100,800 in exchange for shares, while Ethan contributes various assets including an installment note, land, and inventory with different bases and fair market values for his shares. Under the Internal Revenue Code, services rendered in exchange for stock are considered taxable income to the service provider at the fair market value of the stock received. Therefore, Marie would have income equal to the fair market value of the 400 shares she receives. The basis of the stock she receives would also be equal to the value of the services provided, $100,800. On the other hand, Ethan's contribution of property (excluding services) to the corporation in exchange for stock is generally not considered a taxable event if certain conditions are met (e.g., if the contributors are in control of the corporation immediately after the exchange). Thus, Ethan would typically not recognize any gain or loss on the exchange, and his basis in the 1,600 shares would be the aggregate basis of the contributed assets ($237,560).
suppose that there has been a decline in the price of pork and that beef and pork are substitutes. what effect will this have on the market for beef
Answer:
It will get less sales and people will gain less money than usual since there is very little variations.
Explanation:
You can calculate the return on equity of any investment that consists of one cash inflow and outflow using the zero coupon bond approach.
O True O False
Answer:
TRUE
Explanation:
The poiunt is, we are going to discount the cash at the end and compare with the cash at the beginning to know if there is a positive present value.
[tex]\frac{C_e}{(1+r)^n} =C_b[/tex]
Having the cash values and know the time lapse between them, we solve for how much the actual rate of the investment is. Know that we can determinate if it fullfil our minimum rate of return.
The American Floral Council used an ad that showed three flower arrangements varying in size froma single rose to a very large elaborate arrangement. The caption simply read, "Just how mad isshe?" This ad relies on which of the following situational influences for its effectiveness?
A. purchase task
B. social surroundings
C. physical surroundings
D. psychological effects
E. antecedent states
Answer: E. Antecedent states
Explanation: The ad relies on antecedent states for its effectiveness. Antecedent states are features of an individual that are not lasting characteristics including mood, social, physical or time factors and momentary conditions such as acute anxiety, pleasantness, cash on hand, fatigue and so on. By asking just how mad?, the emotions of the viewer is elicited which might leads to him or her making a purchase, an additional purchase or none at all. As an aspect of situational influences, antecedent states are temporary.
The function of financial markets and institutions is: to manage portfolios of investors. to create economical booms and recessions. to look at decisions in firms from the financial manager's point of view. to facilitate the flow of funds through the economy.
Answer:
The correct answer is letter "D": to facilitate the flow of funds through the economy.
Explanation:
Financial Markets are the cornerstone of a capitalistic economy because they help facilitate capital formation and liquidity for entrepreneurs and businesses. Financial markets create liquidity by making it easy for buyers and sellers to trade their financial holdings.
Financial markets and institutions primarily facilitate the flow of funds in the economy, promoting investment activities and economic growth. They act as intermediaries between savers and borrowers, also giving access to various credit and investment options.
Explanation:The primary function of financial markets and institutions is to facilitate the flow of funds through the economy. They do this by acting as intermediaries, linking savers and borrowers. This role is pivotal for the functioning of economies as it promotes economic growth by improving liquidity and supporting investment activities. While they indeed have a role in managing portfolios of investors, this is not their primary function. Their decisions can have an impact on economic conditions, potentially contributing to booms or recessions, but they do not deliberately create these situations. Instead, they provide businesses and individuals with access to different types of credit and investment opportunities.
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Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. Next, assume that disposable income increases by $80 billion, consumption rises by $56 billion, and saving goes up by $24 billion. What is the economys MPC? Its MPS?
Instructions: Round your answers to one decimal place.
MPC =
MPS =
What was the APC before the increase in disposable income? After the increase?
Instructions: Round your answer to two decimal places.
APC before the increase in disposable income =
Instructions: Round your answer to three decimal places.
APC after the increase in disposable income =
Answer:
MPC = 0.7
MPS = 0.3
APC before the increase in disposable income = 0.875
APC after the increase in disposable income = 0.859
Explanation:
Given that,
Disposable income = $800 billion
Consumption = $700 billion
Savings = $100 billion
Further,
Disposable income increases by $80 billion
Consumption rises by $56 billion
Saving goes up by $24 billion
Therefore,
Marginal propensity to consume(MPC):
= Change in consumption level ÷ Change in disposable income
= $56 billion ÷ $80 billion
= 0.7
So, Marginal propensity to save = 1 - MPC
= 1 - 0.7
= 0.3
Average propensity to consume(Before increase in disposable income):
= Consumption ÷ Disposable income
= $700 billion ÷ $800 billion
= 0.875
Average propensity to consume(After increase in disposable income):
= Consumption ÷ Disposable income
= ($700 + $56) billion ÷ ($800 + $80) billion
= $756 billion ÷ $880
= 0.859
Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank holds $1 million in excess reserves and the required reserves ratio is 8 percent, what is the minimum required reserve?
Answer:
Minimum Required Reserve are 1.33
Explanation:
The formula for the calculation of Cash reserve ratio is as follows:
Cash Reserve Ratio = Reserve Requirement x Bank Deposits
Cash Reserve Ratio = Reserve Requirement x ( Bank deposit + cash in vault )
8 = Reserve Requirement x ( 5 + 1 )
8 = Reserve Requirement x 6
Reserve Requirement = 8/6
Reserve Requirement = 4/3
Reserve Requirement = 1.33
Answer:
$76 million
Explanation:
($6 million/.08) + $1 million = $75 million + $1 million = $76 million
Bacerra records purchases at invoice price and uses the perpetual inventory system. On July 5, Bacerra returned $12,000 of goods purchased on account to the seller. How would Bacerra record this transaction? Select one: A. Accounts Receivable 12,000 Inventory 12,000 B. Cash 12,000 Purchases 12,000 C. Accounts Payable 12,000 Inventory 12,000 D. Accounts Payable 12,000 Purchases 12,000
Answer:
C. Accounts Payable 12,000 Inventory 12,000
Explanation:
When Purchases Made using perpetual inventory system following Entry was made
Dr. Inventory xxx
Cr. Account Payable xxx
So, the purchase return will be reverse entry of the above which will reduce inventory and account payable as well. The correct entry for the event is C. Accounts Payable 12,000 Inventory 12,000.
Final answer:
Bacerra records the goods return transaction as a debit to Accounts Payable and a credit to Inventory, reflecting the decrease in both the liability and the asset.
Explanation:
When Bacerra returns
$12,000 of goods purchased on account to the seller under the perpetual inventory system, the transaction is recorded by decreasing Inventory and decreasing Accounts Payable. Bacerra is effectively reversing the initial recognition of inventory at the time of purchase and also the associated liability that was recognized when the goods were originally purchased on account. The correct journal entry is:
C. Accounts Payable 12,000 Inventory 12,000
Therefore, the transaction would be recorded as a debit to Accounts Payable and a credit to Inventory, which reflects the reduction of both the liability for the returned goods and the asset that no longer needs to be accounted for.
Adjustment error. The accountant for Stringer Services failed to adjust the Supplies account to recognize the amount consumed during March. As a result of this error, will the following items be overstated, understated, or unaffected? a. March revenues will be ________________. b. March expenses will be ________________. c. March net income will be _______________. d. Ending owner’s equity as of March 31 will be _________________. e. Assets as of March 31 will be __________________. f. Liabilities as of March 31 will be _________________.
Answer:
a. unaffected
b. understated
c. overstated
d. overstated
e. overstated
f. unaffected
Explanation:
The journal adjustment entry for supplies consumed should be;
Supplies expense A/C Dr.
To Supplies A/C
(Being supplies consumed recorded)
Supplies expense being an expense and supplies being an asset, the omission would lead to understated expenses since the expense has not been recorded and overstated assets since the cost of supplies used was supposed to be reduced from assets balance.
The company employs a single employee who works all five weekdays and is paid on the following Monday. The employee works the entire week ending on Friday, December 30. The employee earns $800 per day.\ Complete the necessary adjusting entry by selecting the account names and dollar amounts from the drop-down menus.
Answer:
Explanation:
The question says to complete the necessary adjusting entry
What is an adjusting entry:
An adjusting entry represent an accounting entry passed usually at the end of the accounting year to ensure that accounts following the matching principle. An adjusting entry can further be passed to calculate and bring in respective account balances at the end of the period.
Therefore, the required adjusting entry is as follows:
Date Particulars Debit Credit
Dec 30 Salaries expense $4,000
Salaries payable a/c $4,000
being the record of salaries accrued at the end of the year
Note: Since a day is $800 and there are 5 days, the accrual is $800 x 5 = $4,000
Juanita, a manager at a multinational organization, is trying to carefully scan and link the firm's internal environment to its external environment. The insights from this analysis will allow her to effectively leverage the company's internal strengths to exploit external opportunities, while mitigating internal weaknesses and external threats. In this scenario, which of the following managerial tools is Juanita employing
Answer:
The correct answer is letter "D": SWOT analysis.
Explanation:
SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a study of a company's internal and external factors and its impact on the business. The internal factors (Strengths and Weaknesses) and the external factors (Opportunities and Threats) help an organization to identify profit and losses chances.