20 points easy …………………….

erastova [34]

Answer:A

Explanation:

3 0

2 years ago

In September 2008, the stock market fell sharply and continued to perform poorly due to the financial crisis. How did this chang

GenaCL600 [577]

Answer:

Many people's wealth is held in stocks and as the price of stocks collapsed, they lost wealth.

Imagine that this happened to you. One day you are rich and that affects your spending habits. In a matter of few days or weeks, you lose a large portion of your wealth. So now, you are less rich or even poor. So your spending habits will be altered, i.e. you will spend less.

If you consider the economy as a whole, aggregate demand will fall, resulting in a decrease of aggregate supply, and an overall decrease of the GDP.

6 0

2 years ago

Determine whether each of the following accounting duties mainly involves financial accounting, managerial accounting, or tax ac

tekilochka [14]

Answer:

Explanation:

1. managerial

2, managerial

3. financial

4. financial

5. tax

6. financial

7. tax

8. tax

3 0

2 years ago

On January 1 of this year, Avaya Corporation issued bonds with a face value of $ 2,000,000 and a coupon rate of 6 percent. The b

ra1l [238]

Bonds Payable amount reflected in balance sheet = $2192890

Face Value = $2000000

Coupon Rate = 10%

Maturity Period = 10 years

Number of compounding = 2

Interest = $2000000 * 10% * 6/12 = $100000

Period = 2 * 10 = 20

Maturity Value = Face Value = $2000000

Market Interest Rate semiannually = 0.085 / 2 = 0.0425

Market Value = Present Value of Future Cash Flows

= PV of Interest + PV of maturity value

= (Interest * PVAF (4.25%, 20)) + (Maturity Value * PVIF (4.25%, 20))

= (100000 * 13.29437) + (2000000 * 0.434989)

= $1329437 + $869978

= $2199415

Since market value is greater than face value, we can say that bonds are issued at a premium.

Premium = $2199415 - $2000000 = $199415

Journal Entry to record the issuance of bonds:

Cash a/c Dr $2199415

To Bonds Payable a/c $2000000

To Premium on the issue of bonds $199415

Bonds Payable amount is a liability account that carries the quantity owed to bondholders by way of the company. This account usually seems in the lengthy-term liabilities section of the stability sheet, on account that bonds usually mature in more than one year.

Learn more about Bonds Payable amount here: brainly.com/question/7158291

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6 0

1 year ago

Wyatt is paying back a loan with a nominal interest rate of 13. 62%. If the interest is compounded quarterly, how much greater i

lbvjy [14]

Wyatt's effective interest rate would be greater than his nominal interest rate by 0. 71 percentage points.

The nominal interest rate is 13. 62% or 0.1362 that would be given an effective rate of interest as follows:

$R=(1+\frac{i}{m})^{m} -1\\=(1+\frac{0.1362}{4})^{4} -1\\=0.1433$