The answer would be
A. union-friendly
because during the new deal labor laws that favored unions were passed
Answer:
(a) $45
(b) 4.45%
(c) 1.41%
Explanation:
a) Dollar return:
= Selling Price - Buying Price + Coupon
= $985 - $1,010 + $70
= $45
b) Rate of return:
= Dollar return ÷ Buy price
= 45 ÷ 1,010
= 4.45%
c) Based on Fisher relation,
(1 + Nominal rate) = (1 + Real rate) × (1 + Inflation)
(1 + 4.45%) = (1 + Real rate) × (1 + 3%)
Therefore,
Real rate = 1.41%
C. Public Good (at least I think because the money goes to the public)
The consulting company has an experienced team that can offer value to a specific set of customers—manufacturers with a need to reduce cost
Answer: 4. The expenses incurred during a period are matched with the revenues that those expenses generated.
Explanation:
The accrual basis of accounting works by matching accounting transactions to the period that they occur in. For instance, if revenue is sold in year 1 but the cash for it is only received in year 2, the revenue will be recorded for year 1.
The matching principle falls under the accrual basis and matches the expenses in a period to the revenue that the expenses generated in that same period. This is why the expenses in the income statement are only those that occurred in the current period and expenses for future periods are put in the balance sheet.
