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2 years ago

If a bank has a leverage (assets/equity) of 10 and a return on asset of 2%, what is its return on equity

Business

1 answer:

Archy [21]2 years ago

8 0

Answer:

If a bank lends $10 for every $1 of capital reserves it will have a capital leverage ratio of 1/10 = 10% Globally it is required that this ratio is at least 3%, according to the Basel III Basel III Basel III is a regulatory framework designed to strengthen bank capital requirements while also mitigating risk.

Explanation:

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The Allowance for Bad Debts account has a credit balance of $2,000 before the adjusting entry for bad debts expense. The company

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Answer:

$10,000

Explanation:

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Allowance for Doubtful Accounts $250,000*4%=$10,000

Bad Debt Expense will be $10,000

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3 years ago

Tiana's checking account charges a $7.75 monthly service fee and a $0.16 per-check fee. If Tiana writes 17 checks per month, sho

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A key distinction between the keynesian and neoclassical economists is that keynesians believe the economy exhibits a ________ a

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2 years ago

Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion. Informat

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1 year ago

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: In

tangare [24]

Answer:

First sale = $34720

Second sale = $29760

Third sale = $14880

Inventory balance after 1st sale = $366480

Inventory balance after 2nd sale = $346720

Inventory balance after 3rd sale = $331840

Explanation:

Under the FIFO method of inventory measurement, inventory that arrives and/or is purchased in the beginning should be sold first, which means the latest inventory is kept therefore the cost of ending inventory under FIFO is greater than other inventory measurement methods due to latest prices which keep increasing as a result of inflation.

1120 units of inventory is sold first on May 12, the inventory is sold from the inventory of May 10, the cost of this sale is as follows:

First sale =1120 × $31

First sale = $34720

From the opening inventory 10480 units are left (11600-1120).

Inventory balance = (10480 ×$31) + (800×$33) + (720 ×$35)

Inventory balance = $366480

The second sale is of 960 units on May 14.

(Note: under FIFO until initial units are fully sold no later inventory is sold before them).

Second sale = 960 × $31

Second sale = $29760

Inventory balance = {9520×$31)} + (800×$33) + (720 ×$35)

Inventory balance = $346720

The third sale is of 480 units on May 31.

Third sale = 480 × $31

Third sale = $14880

Inventory balance = {9040×$31)} + (800×$33) + (720 ×$35)

Inventory balance = $331840

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4 years ago