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3 years ago

Consider the relative liquidity of the following assets:

Business

1 answer:

motikmotik3 years ago

7 0

Answer:

Liquidity of an asset refers to how easily convertible the asset is to cash or so called liquid money.

Most Liquid - A $5 bill

This is already cash so it is the most liquid there is.

Second-Most Liquid - The funds in a money market account

Funds in a money market account are the second most liquid because most often they can simply be withdrawn from the fund. There might be limits on the number of withdrawals allowed though within a period.

Third-Most Liquid - A share in a publicly traded company

A share in a publicly trade company ranks here because to realize the cash, one would need to sell the share first.

Least Liquid - Your house

Your house will be the most difficult of these to liquidate as it will involve a much longer process to eventually get it sold and realize cash. The process will include but will not be limited to, advertising, hiring realtors, inspection etc.

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Trident Office is considering remodeling the office building it leases to Robert Roberts, CPA. The remodeling costs are estimate

mezya [45]

Answer:

$59,309

Explanation:

Years Cash flow PV Factor at 10% Present value of cash flows

0 225,000 1.00000 225,000

1 75,000 0.90909 68,182

2 75,000 0.82645 61,983

3 75,000 0.75131 56,349

4 75,000 0.68301 51,226

5 75,000 0.62092 <u>46,569</u>

Benefit of remodeling project <u>$59,309</u>

Note: Year 0 PV factor = 1/(1+10%)^0 = 1

4 0

3 years ago

Define option price. Explain why the option price of a policy might differ from the expected surplus generated by the policy.

Nesterboy [21]

Explanation:

Options prices, known as premiums, are composed of the sum of its intrinsic and time value. Intrinsic value is the price difference between the current stock price and the strike price. An option's time value or extrinsic value of an option is the amount of premium above its intrinsic value.

8 0

3 years ago

Hunt Incorporated sold $209,000 of accounts receivable to Gannon Factors Inc. on a with recourse basis. Gannon assesses a 2% fin

pentagon [3]

Answer:

Dr Cash $190,190

Dr Due from Gannon Factors $14,630

Dr Loss on Sale of Receivables $16,280

Cr Accounts Receivable $209,000

Cr Recourse Liability $12,100

Dr Accounts Receivables $209,000

Cr Due to Customer $14,630

Cr Interest Revenue $4,180

Cr Cash $190,190

Explanation:

Journal entries

Dr Cash $190,190

Dr Due from Gannon Factors $14,630

Dr Loss on Sale of Receivables $16,280

Cr Accounts Receivable $209,000

Cr Recourse Liability $12,100

Dr Accounts Receivables $209,000

Cr Due to Customer $14,630

Cr Interest Revenue $4,180

Cr Cash $190,190

*7% X $209,000 =$14,630

*2% X $209,000 =$4,180+$12,100=$16,280

5 0

3 years ago

when a manufacturer saturates the market by selling to any intermediary of good financial standing that is willing to stock and

Luda [366]

When a manufacturer saturates the market, the manufacturer is engaging in intensive distribution.

Intensive distribution can be define as the way in which companies or manufacturer made available or distribute their products from retail outlet to wholesaler outlet.

Most companies use intensive distribution marketing strategy to increase sales and to sell out the products in their warehouse so as to restock or restore new products.

Intensive distribution help to create product awareness to those people that are not aware of the products due to the fact that the products can be find everywhere.

Inconclusion the manufacturer is engaging in intensive distribution.

Learn more about intensive distribution here:

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3 years ago

______ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectivenes

MA_775_DIABLO [31]

Resources are the assets, capabilities, processes, information, and knowledge that an organization uses to improve it's effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.

4 0

3 years ago