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3 years ago

How did speculative investing weaken the stability of the stock market

1 answer:

4 0

Speculative investing means that people investing don't know the real value of the investment, only speculate it. This often inflates the prizes, which means that things cost more than they're actually worth. The problem is when people start realizing this: then they all try to exhange the goods for money, a financial crisis is possible: and a financial crisis means a lack of stability.

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Recording sales, returns, and discounts taken LO P2 Prepare journal entries to record each of the following sales transactions o

OLEGan [10]

Answer:

Apr. 1

Trade Receivable $6,600 (debit)

Sales Revenue $6,600 (credit)

Cost of Sales $3,960 (debit)

Merchandise $3,960 (credit)

Apr. 4

Sales Revenue $740 (debit)

Trade Receivable $740 (credit)

Merchandise $444 (debit)

Cost of Sales $444 (credit)

Apr. 8

Trade Receivable $2,800 (debit)

Sales Revenue $2,800 (credit)

Cost of Sales $1,960 (debit)

Merchandise $1,960 (credit)

Apr. 11

Cash $5,860 (debit)

Trade Receivable (credit)

Explanation:

Perpetual method of inventory keeps a record of cost of inventory after every sale.

Thus, for every sale transaction remember to recognize the Sales Revenue and the Cost of Sales that follow the sale.

For any returns, De-recognize the Sales Revenue - to the extend of the credit granted and also de-recognize the Cost of Sales to the extend of the value of Inventory returned.

4 0

3 years ago

To construct an income distribution table, the second step is to _____.

gladu [14]

I think it is C but don't quote me on it.

6 0

3 years ago

Casey Motors recently reported net income of $55 million. The firm's tax rate was 40.0% and interest expense was $19 million. Th

nadezda [96]

Answer:

$31.76 million

Explanation:

Economic Value Added is the residual wealth left for shareholders after having accounted for the financing needs of the company as shown by the formula below:

EVA=NOPAT-(WACC*invested capital)

NOPAT is the net operating profit after tax =operating profit(EBIT)*(1-tax rate)

Net income=Earnings before tax*(1-tax rate)

net income= $55 million

EBT=unknown

tax rate=40.0%

$55=EBT*(1-40.0%)

$55=EBT*0.60

EBT=$55/0.60

EBT=$91.67

EBIT=EBT+interest

EBIT=$91.67+$19

EBIT=$110.67

NOPAT=$110.67*(1-40%)

NOPAT=$66.41

WACC=9.0%

perating capital employed=$385

EVA=$66.41-(9.0%*$385)

EVA=$31.76 million

operating capital em

3 0

3 years ago

NEED HELP ASAP!!!

andreyandreev [35.5K]

Answer:B. Governments

Explanation: Because first and foremost the taxes that are required form the people who are working becomes the property of the government and therefore this money must be allocated well in infrastractures such as roads and national literacy such as education.

4 0

3 years ago

Read 2 more answers

A decrease in demand, with supply constant, results in a(n)

riadik2000 [5.3K]

Answer:

The correct answer is decrease in equilibrium price and a decrease in equilibrium quantity.

Explanation:

The supply being constant, a decrease in demand will cause the demand curve to shift to the left while the supply curve will remain the same.

The new demand curve will intersect the supply curve at a lower point. This rightward shift in the demand curve will cause both the equilibrium quantity as well as the equilibrium price to fall.

4 0

3 years ago