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3 years ago

What is the main difference between a stock and a bond?

Business

2 answers:

Likurg_2 [28]3 years ago

7 0

Answer:

The difference between stocks and bonds is that stocks are shares in the ownership of a business, while bonds are a form of debt that the issuing entity promises to repay at some point in the future. In general, though, bonds offer a guaranteed payback, and stocks do not.

baherus [9]3 years ago

5 0

A bond is a debt instrument. The company or government issuing it borrows your money and pays you a fixed amount of money for the use of the loan you have made available to the company or government. The selling price is usually what the face value of the bond is, but this can vary according to interest rates determined by the Federal Reserve.

A stock is ownership. You own a fraction of the company you've invested in. Sometimes a company pays a dividend. That means that the company has excess funds and decides to pay its shareholders a fraction of what the company brings in. When you buy a stock, you expect to sell it at a higher price than what you bought it at. That's called a capital gain. It's another source of income.

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When buyers use ___________________ to draw inferences about the quality of products, then markets may have trouble reaching ___

bagirrra123 [75]

Answer:

Market price; Equilibrium price

Explanation:

The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. This is the point at which the demand and supply curves in the market intersect. It become hard to reach equilibrium price and quantity when customers infer the quality of a product by its price cos that will inform their purchasing decision.

7 0

3 years ago

Hayden, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of

sveta [45]

Answer: A. Speech of delivery

Explanation:

When buying things like software, there are certain things that will determine the value apart from the monetary price. These include the ease of installation and the availability of training assistance.

With ease of installation, the fundamental question is if the software is easy or complicated to install. The easier it is the better. Also is there someone who can help the users be able to master the features of the software. This is availability of training assistance.

Now while speech of delivery can help in convincing Hayden to buy from a particular shop, it does not contribute to the value of the software.

6 0

3 years ago

An intangible asset

Alexxx [7]

Answer:

The correct answer is letter "C": does not have physical substance, yet often is very valuable.

Explanation:

Physically, intangible assets do not exist but they are important since they represent potential revenue. Types of intangible assets include brand recognition, intellectual property and legitimate patents such as patents, trademarks, and copyrights. Intangible Assets do not have value for accounting recording purposes.

3 0

3 years ago

Ana Co. uses the allowance method to account for bad debts. At the end of the period, Ana's unadjusted trial balance shows an ac

Afina-wow [57]

Answer:

A. $800

Explanation:

Ana Co.

Sales $500,000

Accounts Receivable $40,000

Allowance for doubtful accounts $300 Credit

Bad Debts Expense = 2 % of $ 40,000= $ 800

The adjusting entry would be

Bad Debts Expense $ 800 Dr.

Allowance for doubtful accounts $800 Credit

As we already have a credit balance of $ 300 in the doubtful accounts we will increase it with an amount of $ 500.

Allowance for Doubtful Accounts $ 500 Debit

Account Receivable $ 500 Credit

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3 years ago

Rodriguez Corporation issues 10,000 shares of its common stock for $196,400 cash on February 20. Prepare journal entries to reco

emmainna [20.7K]

I’m not going to be able to get my homework homework but I’m not gonna be going back to school

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3 years ago