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3 years ago

Which of the following is a criticism of the national income and product accounts?

Business

1 answer:

jok3333 [9.3K]3 years ago

4 0

I believe the correct answer among the choices is:

b) They do not capture most nonmarket economic activity

The National Income and Product Accounts or NIPA is one of the main sources of the data on general economic activity in the United States. The greatest drawback to this is that it is only a prediction, it does not really reflect all the acitivities.

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Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. Al

pochemuha

Answer:

Preferred stock dividends to be paid in 2018 = $20000

Common stock dividends to be paid in 2018 = $2000

Preferred stock dividends to be paid in 2018 = $10000

Common stock dividends to be paid in 2018 = $12000

Explanation:

The preferred stock dividends are always paid before the common stock dividends.

Cumulative preferred stock is the stock which accumulates or accrues dividends if the dividends are partially paid or not paid at all in a particular year. These dividends are accrued and are required to be paid by the company whenever it declares dividends.

Non cumulative preferred stock does not accrue or accumulates dividends. Thus, if dividends are not paid in a particular year, the company has no obligation to pay these dividends ever in the future.

If the preferred stock is assumed to be cumulative, then the dividends in arrears for 2017 will be paid in 2018 along with dividends for 2018 on preferred stock before paying the common stock holders.

Preferred stock dividend per year = 2000 * 100 * 0.05

Preferred stock dividend per year = $10000

Preferred stock dividends to be paid in 2018 = 10000 + 10000 = $20000

Common stock dividends to be paid in 2018 = 22000 - 20000 = $2000

If the preferred stock is assumed to be non cumulative, then the dividends in arrears for 2017 will not be paid in 2018. Only the dividends for 2018 on preferred stock will be paid before paying the common stock holders.

Preferred stock dividend per year = 2000 * 100 * 0.05

Preferred stock dividend per year = $10000

Preferred stock dividends to be paid in 2018 = $10000

Common stock dividends to be paid in 2018 = 22000 - 10000 = $12000

3 0

3 years ago

Suppose recent regulatory reforms relating to credit rating agencies are perceived to improve the reliability and accuracy of cr

damaskus [11]

Answer:

If the new reforms bring increase confidence of the investors then the company will have to incur lower borrowing costs as the investor will be available and vice versa.

Explanation:

Suppose that previously our company's credit rating was overrated. Due to recent regulatory reforms, my company achieved a lower credit rating and hence the investor confidence in our company dropped significantly. Now the investor is not interested to invest in my company and to urge them to invest in the company, they will be offered higher interest. If the reforms are going to impact our credit rating adversely then the borrowing cost will increase and vice versa.

Furthermore, Core Principle 3 says that the decsion making of the investor is based on the information that is readily available to him. This means if the reforms increase the access of the borrower through improved credit rating then it will be favourable for the company in terms of lower borrowing costs. If the reforms decrease the access of the borrower through depreciating credit rating then it will adversely affect the company in terms of lower borrowing costs and lower investment access.

5 0

3 years ago

Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on Janu

pantera1 [17]

Answer:

The multiple choices are:

A. $1,000,000.

B. $2,790,800.

C.$3790, 800.

D.$4,000,000

The correct optio is C,$3790, 800.

Explanation:

The interest expense on the loan is usually the opening balance multiplied by the market rate interest which is 10% in this question.

In addition,we can deduct the annual repayment in order to know the closing balance of the loan.

Year opening bal interest expense at10% repayment closing bal.

2019 $37,908,000 $3,790,800 $4,000,000

The closing balance is $37,908,000+ $3,790,800-$4000,000

The interest expense is 10% of the present value of $37.908,000 that is $ 3,790,800.00

6 0

3 years ago

It's the end of the accounting period and no electric bill has been received (but expense has been incurred. ; you should record

Sati [7]

You should make note of the fact that no bill was received but you did make the payment.

8 0

3 years ago

Read 2 more answers

Choose the statement about ITQs that is correct.

melomori [17]

Answer:

D. When ITQs are used, no one has an incentive to cheat and exceed the quota.

Explanation:

As ITQs (individual transferable quotas) were initially created by the government to regulate an above all, social affair, which is related to the share in the total allowable catch of fish (species).

Since some of the fishermen have lower and some have higher marginal costs of "producing" fish, they trade ITQ's between themselves, with those who have high marginal costs selling ITQs to those that have low marginal costs. Also, the marginal private cost now becomes determined by the initial marginal private cost of the fish, plus the price of the ITQ. Then, it becomes known as the marginal social cost.

The equilibrium for the ITQ price is the difference between the marginal social benefit and the marginal cost. With the base marginal private cost becoming the marginal social cost, no one has the incentive to exceed the quota, as that would make the marginal cost go higher than the price, and the marginal profit lower. This notion creates the equality between self-interest and social interest.

4 0

3 years ago