Answer:
Dr Available for sale securities 11,500
Cr Unrealized gains - AFS securities 11,500
Explanation:
The securities cost is $420,000 while the fair market value is $431,500, so the difference is an unrealized gain of = $431,500 - $420,000 = $11,500.
Unrealized gains are included in Other comprehensive income account, which belongs under stockholder equity. When unrealized gains increase, then they should be credited.
Since the securities are held as investment assets, they should also increase by debiting the account.
Answer:
The correct answer is B.
Explanation:
Diversification is a business strategy in which a company enters a field or market different from its core activity. It is a risk management strategy that mixes a wide variety of investments within a portfolio by allocating capital in a way that reduces the exposure to any one particular asset or risk.
Diversification merits strong consideration whenever a single-business company is faced with diminishing market opportunities and stagnating sales in its principal business.
Answer:
The answer is option B) Frictional unemployment is inevitable because the economy needs to be lubricated.
Explanation:
Frictional unemployment is different from others in happens as a result of employees seeking out better opportunities. They could leave voluntarily or be fired from their current jobs but its is for a greater good- which is a quest for better economic opportunity.
Frictional unemployment occurs when there is a mismatch between job seekers and available jobs in the market.
It also happens due to the natural career progression for an employed staff seeking to transition to a new job, industry, or role.
Frictional unemployment is like a lubricant in the economy because an increase in frictional unemployment means more workers are moving toward better positions.
Answer:
Option B
Explanation:
In simple words, Income inequality refers to the severe imbalance in wealth levels typically in the possession of a limited minority of a community with a large accumulation of wealth.
If wealth disparity exists, there is indeed a wide difference in the resources of one group of the society and that of another. Specific forms of discrimination and study of wage differences should be used to explain economic inequality.
Thus, from the above we can conclude that the correct option is B .
Answer:
a) $3077
b) The owner should make this investment because the marginal benefit is greater than the marginal cost
Explanation:
Given data :
Total cost = $2000
depreciation rate = 8% per year
expected increase in revenue (CF ) = $400
interest rate = 5%
a) Determine the present value of the stream of revenue due to the upgrades
= CF / ( 1 + r ) ^t where ( 1 + r )^t = 13%
= 400 / 13%
= $3077
b) The owner should make this investment because the marginal benefit is greater than the marginal cost
