Answer:
e. 71 dollars
Explanation:
Peter was willing to but the wine for $45
In a year, there is an increase of $15 = $45 + $15 = $60
The interest rate of 10% of $60 = $6
Total = $66 ~ $70
Therefore, the amount he is willing to pay for the win if he buys it as investment would be 71 dollars.
Answer:
a. Prior period adjustments.
Explanation:
"Retained earnings is the cumulative total of earnings that have yet to be paid to shareholders. These funds are also held in reserve to reinvest back into the company through purchases of fixed assets or to pay down debt."
Prior period adjustments in the beginning balance are key to calculate the retained earnings at the end of the period:
Retained Earnings = RE Beginning Balance + Net Income (or loss) – Dividends.
Therefore, prior period adjustments may either increase or decrease RE.
Reference: Morah, Chizoba. “Which Transactions Affect Retained Earnings?” Investopedia, Investopedia, 11 July 2019
Answer: Managed Float
Explanation:
Also called "Dirty Float", the Managed float is an exchange rate system that allows for the currency of a country to be set by the forces of demand and supply in the market.
However, unlike in a clean float, the Central bank will occasionally intervene in the market to influence the how fast the currency is changing value or to control the direction it is going.
This is usually done to protect the domestic economy from sudden shocks in the global economy.
Answer: . liquidity ratios
Explanation:
Liquidity ratios : These are the ratios that measure the capability of a company to meet its short term debt commitments .They show the number of times the short term debt obligations are covered by the cash and liquid assets. The following are examples of liquidity ratios
a) current ratio
b) cash ratio
c) quick ratio
d) working capital ratio .
Current ratio : This ratio juxtapose current assets to current liabilities.
Cash ratio : This ratio juxtapose just cash and investments which are readily convertible to current liabilities.
