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Likurg_2 [28]
3 years ago
5

Money is a productive asset. Its opportunity cost is:

Business
1 answer:
dsp733 years ago
8 0

Answer:

The correct answer is A. The time value of money.

Explanation:

In economic theory, the temporary value of money is intended to represent the idea that a dollar of today is worth more than a dollar of the future, even after adjusting for inflation, because a dollar can now generate interest or other returns up to moment in which the dollar of the future is received. This theory is based on the calculation of present or current value.

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What change in investment strategies has contributed to our economic system evolving into institutional capitalism, according to
Oxana [17]

Answer:

From the end of the Middle Ages to the first centuries of the Modern Era, some new investment strategies were developed, which contributed greatly to the development of capitalism.

Explanation:

In particular, group investment in companies that did not have a single, personal owner. This is what we know today as corporations.

The main advantage of a corporation is that many investors pour their money, something that raises the amount of capital, while at the same time not holding full personal responsability over their investments in case the corporation fails. In other words, investors do not have to pay with their personal wealth in case of corporate failure.

Two important early corporations are the Dutch East India Company, and the British East Indian Company. They were very important for the development of capitalism.

5 0
2 years ago
Cost-push inflation occurs when:
marysya [2.9K]
Short answer D
Labor costs could cause that type of inflation as well.

C is eliminated because Push Cost Inflation is cost increase in what it takes to make a product.

B is gone because it is really deflation not inflation. This answer implies a drop in price. Inflation is an increase in price.

A subsides are an increase in capital. That will lower the price or keep it stable. Not A
4 0
3 years ago
Timothy is looking for suppliers for his cheese-making business. He examines a list of suppliers whom he can contact with a busi
elixir [45]

Answer: Supplier selection process

Explanation:

Supplier selection process is the scenario where an individual or a company wants to purchase an item and they contact various vendors who do such business, and asking them for prices, details; generally the requirements for the items they want, they now choose out of the various vendors options, that which matches what they want.

Timothy is in the supplier selection process, where he's evaluating every detail from the vendors based on his request, with an option to request from any of them that matches his request.

7 0
3 years ago
Your client, Cascade Company, is planning to invest some of its excess cash in 5-year revenue bonds issued by the county and in
muminat

Answer:

Memorandum

Date 27th March'2017

To: Cascade Company

Subject: Re: Accounting treatment for the investments based on FASB Codification research

Purpose

This memorandum addresses the investment concern of Cascade Company in Teton Co. about accounting treatment based on FASB Codification research

Details

Query- 1). Since the Teton shares do not trade on one of the large stock markets; Cascade argues that the fair value of this investment is not readily available. According to the authoritative literature, when is the fair value of a security “readily determinable”?

Query- 2). How is an impairment of a security accounted for?

Query- 3). To avoid volatility in their financial statements due to fair value adjustments, Cascade debated whether the bond investment could be classified as held-to-maturity; Cascade is pretty sure it will hold the bonds for 5 years. How close to maturity could Cascade sell an investment and still classify it as held-to-maturity?

Query- 4). What disclosures must be made for any sale or transfer from securities classified as held-to-maturity?

Issue:

1) To determine accurately the fair value of the security of a given firm or Company, the necessary three conditions to be met are:  

  • The fair value per share, in another word known as a unit must be indomitable and in print.  
  • At this point, the unit qualifies to be the basis for current transactions.  
  • In an event the fair market value of an equity security is determined then the sales price can be easily reached on a securities exchange which is registered with the United States Securities and Exchange Commission.
  • The sales price also can made be available in the over the counter markets. The last condition relates in foreign market situations exclusively. The overseas market should be analogous in width and extent to the American markets pursuant to (FASB, ASC 320-10-20).

2) The impairment of a security is accounted for by evaluation of the impairment test to the level of loss in value showing exterior the temporary measures. The company is allowed to take stepladder to recognize and account for securities grouped as either available for sale or held to maturity by making an assessment of whether a decline in fair value down the amortized cost basis is other than temporary. Providing a general allowance for anonymous impairment in securities portfolio in an inappropriate way (FASB, ASC 320-10-35-18). Additionally, amortized initial outlay exceeds the fair value of a project or investment at the date of balance sheet reporting period for which the respective impairment is assessed, the impairment is either other than temporary or temporary”(FASB, ASC 320-10-35-30).

3) To classify a bond as a held to maturity investment, the company must have the affirmative intent and capability to hold respective securities to maturity (FASB, ASC 320-10-25-1). In case the bonds were sold as a five-year term, it would be satisfactory to categorize the asset as held-to-maturity. It depends upon standard to sell a held-to-maturity security early. The sale of a held-to-maturity security must be in rejoinder to an actual decline, not mere conjecture, to the credit worthiness of the issuer pursuant to as according to (FASB, ASC 320-10-25-5(d)). Cascade can only sell the security based on the standards adjoining held-to-maturity categories if following conditions are met:

  • The security sale appears near adequate to its maturity time (or call period if exercise of the call is plausible) that risk on interest rate is significantly removed as a pricing factor, or  
  • The sale of a security appears after the firm has already unruffled a considerable portion of the principal outstanding at acquisition due either to scheduled payments on a debt security payable in equal installments or to prepayments on the debt security (it would include both principal and interest) over its term period (FASB, ASC 320-10-25-14).

4) The entities must disclose the following for either the sale or transfer from securities classified as held-to-maturity:

  • The net carrying amount of the security transferred or sold.
  • The aggregate amount of net gain or loss that is accumulated in other comprehensive income for derivatives which is hedged the predetermined acquisition of the security held-to-maturity.
  • The correlated amount realized or unrealized loss or gain
  • The state of affairs leading to the decision to sell or transfer the security. (These transfers or sales should be rare on exceptions for transfers or sales due to the changes in conditions in accordance to paragraph 320-10-25-6(a) through (f))” (FASB, ASC 320-10-50-10).

8 0
2 years ago
Employees at Brazil-based company Seneco are permitted to control their work hours, location, and even pay plans. Employees also
kogti [31]

Answer:

Empowered

Explanation:

In the given scenario employees in Seneco have the freedom of controlling their work hours, location, and even pay plans. Employees also participate in all organization decisions, including what businesses Senco should pursue.

This is a form of employee empowerment.

Employee empowerment is the act of giving an employee autonomy in decision making regarding their welfare and activities affecting the organisation.

Employees are more involved in decisions affecting their work. This fosters a sense of commitment to the business.

6 0
3 years ago
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