“To persuade my audience that drinking and driving laws should be stricter” aims for:

Hedge funds are low risk because they are market-neutral. low risk if they buy Treasury bonds. low risk because they hedge their

erastovalidia [21]

Answer:

Hedge funds are: high risk, even though they may be market-neutral.

6 0

4 years ago

An optimal procedure for organizations to accept projects is to specify a return on investment (ROI) and fund only projects that

olga nikolaevna [1]

Answer:

False

Explanation:

Capital budgeting is needed in any project work as it entails the process and procedures taken in evaluation and selection of long-term investments that are consistent with the firm's goal of maximizing owner's wealth.

Normally, before a company invest or undergo any project, background work is done to know if the project will yet profit or no, feasibility study is carried out and things are put in place. If it is favourable for the firm and profit is high, firms may choose to invest after weighing the pros and cons (advantage and disadvantage) of the project before investment. So return of investment initial investment is not really considered when taking up a project as all project is done at their own risk.

7 0

3 years ago

1. As time passes, fixed assets, other than land, lose their capacity to provide useful services. To account for this decrease i

Feliz [49]

Answer:

The correct option is b. depreciation

Explanation:

For allocation of fixed assets to expense, the following options is available which is shown below:

1. Equipment allocation : The equipment allocation is not decrease its value neither its usage. So, it would not be considered.

Hence, this option is incorrect.

2. Depreciation : Depreciation is a decrease value of assets due to tear, wear, obsolescence of the fixed assets. Moreover, the usage of the assets is also less than before. The production level goes decreasing with passage of time.

Hence, this option is correct.

3. Accumulation: In simple words, accumulation means something which is acquired. But this thing is not match what the question has asked.

So, this option is not right.

4. Matching: The matching principle matches the expenditure with its income on that period. But in the given question, the value of the asset is decrease so, it would be a wrong option as it is not related to the decreasing value, or capacity value.

Hence, this option is incorrect.

Thus, The correct option is b. depreciation

5 0

3 years ago

During the current year, Eleanor earns $120,000 in wages as an employee of an accounting firm. She also earns $13,000 in gross i

larisa86 [58]

Answer:

$10,000

Explanation:

Eleanor's self-employment tax will require an understanding of a few points.

1. Eleanor earns $120,000 as wages working for an accounting firm therefore, this wages do not qualify for self-employment tax

2. Eleanor earns $13,000 as gross income for her own consulting service and this is self-employment income. However, $3,000 qualify as deductible expenses from the gross income. Taxable self-employment income= $13,000-$3,000= $10,000

3. Long term capital gain tax incurred = $1,000. Ordinarily the capital gain tax should increase the tax. However, its inclusion will be based on the federal government's table for calculating payment of long-term capital gain tax for 2019 based on income for the year.

Looking at the table, income from $0 Up to $39,375 will attract 0% payment of long-term capital gain tax. Since, the self-employment income of Eleanor is $10,000, no long-term capital gain tax will be incurred.

It means only the 13,000-3,000= $10,000 will be tax for self employment

5 0

3 years ago

Firms with volatile operating income tend to have lower debt ratios because Blank______. Multiple choice question. there is a lo

lubasha [3.4K]

<h3>Option 2 is correct - There is a higher probability of experiencing Financial distress.</h3>

Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.

Financial distress is a condition in which a company or individual cannot generate sufficient revenues or income, making it unable to meet or pay its financial obligations. This is generally due to high fixed costs, a large degree of illiquid assets, or revenues sensitive to economic downturns.

Following reasons can lead to financial distress in a firm.

Cash flows - The first sign that things are going wrong is a constant shortage of cash. The old adage that cash is king exists for a reason
Falling margins and poor profits - Experienced entrepreneurs have learnt that for long-term survival what matters are profits, not only sales. Poor profits are usually the first indicators that a business is not doing well.
Poor sales growth or decline in revenues - When there is no sales growth despite extreme marketing activities, this could indicate a lack of customer acceptance, which is key to any business success.
Extended payment days - Another sign of possible trouble is a rise in either creditor or debtor payment days. If business has to delay payments to its creditors, this can force some suppliers to stop supplying

Difficulty in raising capital - If a company is constantly borrowing and asking its investors to inject more capital, this is an underlying sign that it is increasingly finding it difficult to self-sustain.

Hence, Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.

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7 0

2 years ago