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3 years ago

Match the correct motive (Precautionary, Speculative, or Transactions) for holding money to the following definitions.

Business

1 answer:

iogann1982 [59]3 years ago

7 0

Answer: Please refer to explanation

Explanation:

The stock of money people hold to pay unpredictable expenses. Precautionary Motive

The stock of money people hold to take advantage of future changes in the prices of financial assets other than money. Speculative Motive

The stock of money people hold to pay everyday predictable expenses. Transactionary Motive.

2. This is an example of a decrease in Daesun's Transactionary demand for money.

Paying rent is a predictable everyday expense so it is Transactionary.

3. As the interest rate falls, the opportunity cost of holding money falls , and people increase their speculative balances.

The Opportunity cost of holding money falls because people will not be gaining such a high rate of return if they invest due to the lower interest rates so they can hold money with little repercussions. They will increase Speculative balances though to tak advantage when the rates go back up.

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Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $58,000 and $2,700, r

MrRa [10]

Answer:

The amount of the allowance for the year to be reported in income statement is $6,500.

Explanation:

The amount of the allowance for the year to be reported in income statement can be calculated as follows:

Allowance for the year to be reported in income statement = Ending ending Allowance for Doubtful Accounts balance + Uncollectible written off during the year - Opening Allowance for Doubtful Accounts balance = $4,400 + $4,800 - $2,700 = $6,500

Therefore, the amount of the allowance for the year to be reported in income statement is $6,500.

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3 years ago

The merger between two general merchandise stores Sears and K-Mart who each carried some specialty items will most likely produc

irina1246 [14]

Answer:

B. Both economies of scope and economies of scale.

Explanation:

In microeconomics, economies of scale are the cost favorable circumstances that undertakings acquire because of their scale of activity, with cost per unit of yield diminishing with expanding scale.

Economies of scope are "efficiencies framed by assortment, not volume". In economics, "economies" is equivalent word to cost sparing and "scope" is synonymous with widening generation/benefits through differentiated items.

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3 years ago

Cootributions of political institutions

Luden [163]

Answer:

Contributions of political institutions are diverse, and very important for any society.

Explanation:

Institutions contribute to the law and order of a nation. They also help define and determine the government structure of a place. Institutions also promote economic development by incentivizing investment if certain specific institutions are in place, like property rights enforcement, and impartial laws. In fact, this last aspects has been explored at length by economists like Amartya Sen and Daron Acemoglu.

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3 years ago

When demonstrating 2022 maxima’s confident cornering, what should you point out?

jarptica [38.1K]

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The other things to point out when demonstrating 2022 maxima’s confident cornering include the following:

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The minimal understeer when cornering.

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The Maxima 2022 is designed to meet the latest and modern driving standards that provide ease of navigation.

Maxima 2022 is expected to cost around $37,240.

Hence, in this case, it is concluded that Maxima 2022 is an excellent vehicle to consider buying.

Learn more about vehicles here: brainly.com/question/21927146

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3 years ago

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance

Nikolay [14]

Answer:

Please see the detailed solution below:

Explanation:

Solution 1:

Average Operating Assets = (Beginning Operating Assets + Ending Operating Assets) / 2

Average Operating Assets = ($1,850,000 + $1,890,000) / 2

Average Operating Assets = $3,740,000 / 2

Average Operating Assets = $1,870,000

Solution 2:

Margin = Net Operating Income / Sales

Margin = $589,050 / $3,927,000

Margin = 0.15 i.e., 15%

Turnover = Sales / Average Operating Assets

Turnover = $3,927,000 / $1,870,000

Turnover = 2.1

Return on Investment = Margin x Turnover

Return on Investment = 15% x 2.1

Return on Investment = 31.5%

Solution 3:

Residual Income = Net Operating Income - (Minimum Required Rate of Return x Average Operating Assets)

Residual Income = $589,050 - (15% x $1,870,000)

Residual Income = $589,050 - $280,500

Residual Income = $308,550

8 0

3 years ago