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Answer:
d. treasury and top-grade corporate bonds pay interest two times each year
Explanation:
Treasury bonds represent the best solution for investing, having in mind the <u>low-risk aspect</u> and the fact that they are <u>issued by the government</u>. Treasury and top-grade corporate bonds always pay <u>semiannual interests</u>.
<em>Junk bonds</em> should not be even considered in risk-free options, as a junk bond is a bond issued by a struggling company, which may happen not to pay any interest sometimes.
<em>Common stock</em> does not necessarily have to pay quarterly dividends, as some companies pay dividends monthly, or even annually. Also, the risk is still lower in treasury bonds, as common stock becomes questionable in the case of company liquidation. If and when that happens, common stockholders gain rights to company assets only after bondholders and preferred shareholders become paid.
The default risk is present in all bonds, including <em>Yankee bonds</em>, which are issued by foreign companies in the USA.
Answer:
Inventory should be increased by $3,500
Explanation:
Calculation for What adjustment to inventory should be made under IAS 2 after this event
Adjustment to inventory under IAS 2= 13,000 - 9,000- 500
Adjustment to inventory under IAS 2 = $3,500 Increased
Based on the above calculation the adjustment to inventory that should be made under IAS 2 after this event is that Inventory should be increased by $3,500.
Answer:
Derived demand
Explanation:
Derived demand occurs when a good is requested not for benefits they directly provide, but for their contribution to another product.
For example capital, land, labour, and raw materials are demanded for their role in producing a final product.
So they can be seen as goods that have derived demand.
When they demand for the final product increases the good that has derived demand also increases, and vice versa.
