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1 year ago

The extra costs incurred to avoid holding cash when there is inflation are called the?

Business

1 answer:

Ipatiy [6.2K]1 year ago

8 0

The extra costs incurred to avoid holding cash when there is inflation is called Shoe Leather cost.

<h3>What do you understand by inflation?</h3>

The rate of price growth over a set time period is known as inflation. Sometimes the amount of inflation is expressed in general terms, such as the overall rise in price or the rise in the cost of living nationwide. However, it can also be calculated with more accuracy for some goods, such as food, or for services, like a haircut, etc. In any circumstance, inflation refers to how much the necessary array of goods and/or services has increased in price during a specific time period, most usually a year.

To know more about inflation, visit:

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Andre, Beau, and Caroline share profits and losses of their partnership in a :: ratio respectively. If the net income is , c

Brums [2.3K]

Answer: $545,454.55

Explanation:

Caroline's share of the profit would be her sharing ratio over the total ratio time the net income.

= (6 / ( 6 + 2 + 3)) * 1,000,000

= 6/11 * 1,000,000

= $545,454.545

= $545,454.55

7 0

3 years ago

A company has preferred stock with a current market price of $18 per share. The preferred stock pays an annual dividend of 4% ba

scZoUnD [109]

Answer:

Answer:

Dividend (D) = 4% x $100 = $4

Current market price (Po) = $18

Flotation cost (FC) = $1.50

Tax rate (T) = 40% = 0.40

Kp = <u> D </u>

Po-FC

Kp = <u> $4 </u>

$18-$1.50

Kp = <u>$4 </u>

$16.5

Kp = 0.24 = 24%

Explanation:

Cost of preferred stock equals dividend divided by the difference between current market price and flotation cost. Cost of preferred stock is not tax deductible.

3 0

3 years ago

1. "If bonds of different maturities are close substitutes, their interest rates are more likely to move together." Is this stat

Alecsey [184]

Answer:True

Explanation:

A bond is a debt Security issued either by large companies or Governments in order to raise money for capital projects. A Bond usually have maturity date(the date at which the bond will yield it interest or profit).

WHEN BONDS OF DIFFERENT MATURITIES ARE CLOSE SUBSTITUTES, WHEN THE INTEREST RATE OF ONE OF THE BONDS INCREASE,THE INTEREST RATE OF ITS CLOSE SUBSTITUTES WILL INCREASE BECAUSE THE EXPECTED RETURNS OF BOTH ARE NOT EXPECTED TO BE OUT OF THE NORMAL.

5 0

3 years ago

At the time a $400 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of

Oksi-84 [34.3K]

Answer:

Explanation:

The journal entry to record the expenditure account is shown below:

Postage A/c Dr $100

Business lunches A/c Dr $150

Delivery fees A/c Dr $75

Office supplies /c Dr $25

To Petty cash A/c $350

(Being expenditure is recorded)

So, the debit petty cash account would not be considered as it is credited while passing the journal entry.

7 0

3 years ago

is starting her own accounting firm and hires , a freelance web designer who specializes in responsive design to build her busin

sasho [114]

Answer:

No, contracts for personal services are not assignable.

Explanation:

According to a different source, these are the options that come with this question:

Yes, as long as the assignment does not increases the burden on Max.

Yes, Claire can assign her obligations under the contract to anyone who accepts.

No, contracts for personal services are not assignable.

No, the assignment is not valid since Max did not give any consideration.

This is most likely not a good strategy for this woman. The fact that this woman has been hired as a freelance web designer means thta the woman is beig paid for her professional expertise. No one else can perform the job in the way that she can perform it. Therefore, she cannot assign this duty to another person.

8 0

3 years ago