All categories

4 years ago

Why does the Fed pay interest to banks?

1 answer:

4 0

The Fed's ability to pay interest on reserves has become essential. The Fed influences the economy by raising and lowering it's target for the federal funds rate... Hope this helps

You might be interested in

Skysong, Inc. began the year 2022 with retained earnings of $670000. During the year, the company sold additional shares of stoc

vlada-n [284]

Answer:

$787,000.

Explanation:

Skysong, Inc. generated a profit of $248,000 (633,000 - 385,000) during the year 2022. This amount has a credit balance in income statement, closing it would require a debit to it and a credit entry to match the debit is made to Retained Earnings account which is an item of Statement of Owners' Equity. Statement of Owners' Equity is a report that represents the Equity section of balance and accounts for any changes in the owners' equity during a period. The items included in this statement are Capital, Paid-up Capital, Retained Earnings, and Drawings. To calculate the ending balance of Skysong's retained earnings, we have to prepare a statement of owners' equity.

Statement of Owners' Equity

Capital Retained Earnings

Opening Balance - $670,000

Additional Stock $1,005,000

Profit for the Year 248,000

Dividends Paid (131,000)

Closing Balance $1,005,000 787,000

⇒ Skysong's retained earnings will be reported at $787,000 at the end of 2022.

7 0

4 years ago

You are one of nine partners of MobileWorks, a partnership organized to manufacture and sell mobile networking devices. You rece

adelina 88 [10]

Answer:

Try try but don't cry I think we don't lose our hopes

4 0

3 years ago

Bad Brads BBQ purchased a piece of equipment by paying $5,000 cash. They also incurred a shipping cost of $400 to get the equipm

rodikova [14]

Answer:

The $5,400 is the amount should Bad Brads BBQ record the equipment.

Explanation:

According to the Generally Accepted Accounting Principles (GAAP), the amount of asset is recorded at cost or fair market value which ever is lower.

The motive behind this is to present the financial statement in true and fair value rather than mislead values.

Since in the given question, the equipment purchase cost is $5,000 and shipping charges is $400.

So,

The total cost is = Purchase cost + shipping charges

= $5,000 + $400

= $5,400

And, the fair market value is $7,000.

By using the above explanation, the $5400 is the lesser amount than the $7,000.

Hence, the $5,400 is the amount should Bad Brads BBQ record the equipment.

5 0

4 years ago

In terms of workplace diversity, the new millenium has witnessed increased focus on

san4es73 [151]

In terms of workplace diversity, the new millenium has witnessed increased focus on diversity and inclusion for business success, profitability, and growth.

Most businesses now understand that in order to compete globally in different markets they need a varying set of skills, culture, knowledge and expertise to make it happen.

Diversity is now directly linked to innovation, which in turn is linked to success.

7 0

4 years ago

Containerization was developed to facilitate long-distance transport by ________ before transferring to trucks and trains.

Savatey [412]

Containerization was developed to facilitate long-distance transport by ________ before transferring to trucks and trains.

SHIP

4 0

4 years ago