All categories

1 year ago

The difference between total assets of a firm and its total liabilities is called?

1 answer:

4 0

The difference between the total value of assets and the total value of liabilities is equity. Also known as common equity and owners equity.

Assets represent valuable resources that your company manages. Liabilities represent the company's obligations, while both debt and equity represent how the company's assets are financed.

The sum of the difference between assets and liabilities is equity, which is the remaining net ownership of the company by the owners.

In its simplest form, a balance sheet can be divided into two categories: assets and liabilities. assets are items owned by a company that can provide future economic benefits. A liability is something you owe to another party.

Learn more about Liabilities here brainly.com/question/14921529

#SPJ4

You might be interested in

In the vast majority of commercials that advertise cleaners, a woman is shown using the product, even though the high percentage

erma4kov [3.2K]

Answer:

Sex roles are portrayed stereotypical

Explanation:

The people perceive that the household issues like cooking, washing clothes, children mentoring, etc are the jobs of the women becuase this is how they had contributed to the family in the past. So media stereotypically perceives the same way the society does and also portrays it the same way.

7 0

4 years ago

"A 45-year old man earns $150,000 per year and is covered by his employer's 401(k) Plan. He quits" his job and moves to a new co

DaniilM [7]

Answer:

Not to leave previous job.

Explanation:

First of all, the question is that what he will lose after leaving the job?

His earning per year is equal at both sides, still what's the opportunity cost for him?

The answer is simple, he may earn equal but if looked at it in a bigger picture he is losing 401k retirement plan and It is his opportunity cost. He may regret this after leaving the job.

7 0

4 years ago

If Central Bank A cares only about keeping the price level stable and Central Bank B cares only about keeping output at its natu

dexar [7]

A) Both Central Bank A and Central Bank B should increase the quantity of money.

<h3>What is the Central Bank?</h3>

A financial institution with exclusive authority over the creation and distribution of money and credit for a country or a group of countries is known as the central bank. In contemporary economies, the central bank is typically in charge of monetary policy formulation and member bank regulation. Inherently non-market-based or even anti-competitive institutions are central banks. Many central banks, despite the fact that some have been nationalized, are not part of the government and are therefore frequently hailed as being politically independent. However, even though a central bank isn't technically the government's property, its rights are still created and safeguarded by the law.

Learn more about central banks with the help of the given link:

brainly.com/question/24171524?referrer=searchResults

#SPJ4

8 0

2 years ago

Do Public schools, charities and government agencies seek for profit

Delvig [45]

Well in order to run the business no matter which type it is there is a need for revenue, not profit, unless it is private. For public school revenue comes from the State and when a local shop sponsor.

7 0

4 years ago

One bond has a coupon rate of 5.4%, another a coupon rate of 8.2%. Both bonds pay interest annually, have 13-year maturities, an

Gekata [30.6K]

Answer:

a. rate or return bond 1 6.6% bond 2 7.71%

b. Does the higher-coupon bond give a higher rate of return? yes

Explanation:

bond 1 has a coupon rate of 5.4%

bond 2 has a coupon rate of 8.2%

yield to maturity formula = {C + [(Face value - market value) / n]} / [(Face value + market value) / 2]

assume bond 1's face value = $1,000

coupon = 54

n = 13

YTM = 7.5%

0.075 = {54 + [(1,000 - M) / 13]} / [(1,000 + M) / 2]

0.075 x [(1,000 + M) / 2] = 54 + [(1,000 - M) / 13]

0.075 x (500 + 0.5M) = 54 + 76.92 - 0.0769M

37.50 + 0.0375M = 130.92 - 0.0769M

0.0375M + 0.0769M = 130.92 - 37.50

0.1144M = 93.42

M = 93.42 / 0.1142 = $818.04

rate of return = $54 / $818.04 = 0.066 = 6.6%

assume bond 2's face value = $1,000

coupon = 82

n = 13

YTM = 7.5%

0.075 = {82 + [(1,000 - M) / 13]} / [(1,000 + M) / 2]

0.075 x [(1,000 + M) / 2] = 82 + [(1,000 - M) / 13]

0.075 x (500 + 0.5M) = 82 + 76.92 - 0.0769M

37.50 + 0.0375M = 158.92 - 0.0769M

0.0375M + 0.0769M = 158.92 - 37.50

0.1144M = 121.42

M = 121.42 / 0.1142 = $1,063.22

rate of return = $82 / $1,063.22 = 0.07712 = 7.71%

8 0

3 years ago