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3 years ago

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What is the difference between accounting profits and economic profits? which of the two concepts is more appropriate for explai

ning decisions made by entrepreneurs? explain?

1 answer:

Leya [2.2K]3 years ago

8 0

Economic profits. An entrepreneur is more interested in economic profits

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You are going to make an investment of $1000, and are considering 2 options: Option one is a zero-coupon 5-year bond of a compan

Andrei [34K]

Answer:

a. What is the expected return of the risky corporate bond over the 5-year holding-period (in %)?

expected return in $ = (50% x 20% x $1,000 x 4) + (50% x 35% x $1,000 x 4) = $400 + $700 = $1,100

holding period return = ($1,100 - $1,000) / $1,000 = 10%

b. What is its effective annual return?

(1 + 10%)⁰°² - 1 = 1.92%

b. What is its effective annual return?

2. The government bond is the superior investment

The yield of he corporate bond is very low and the risk is too high.

8 0

3 years ago

The intermediate goods are not counted in the calculation of GDP, because: * 2 points A. that involves double-counting. B. these

7nadin3 [17]

Answer:

A. that involves double-counting.

Explanation:

Imagine a company that produces furniture. If we would include the wood, the nails, the wood paint, etc., were included in the calculation plus the furniture itself, you would be double-counting the cost of the manufactured furniture. If you consider waste materials, then you would be adding even more costs. That is why you only consider finished goods.

6 0

3 years ago

If the central bank wants to help the economy to grow, it can decrease _____.

Vladimir79 [104]

I would think Interest rates

6 0

3 years ago

Culver Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for u

SIZIF [17.4K]

Answer:

unrealized loss (OCI) 500 debit

trading securities- wallace 5,200 debit

trading securities gordon 4.200 credit

trading securities - martin 1,600 credit

cash 66,300 debit

loss on investment 6,900 debit

trading securities - gordon 73,200 credit

--to record sale of gordon securties --

trading securities earnhart corp 53,800 debit

cash 53,800 credit

--to record purchase of earnhart--

unrelized loss(OCI) 7,100 debit

trading securities earnhart corp 3,700 credit

trading securities- wallace 3,400 credit

-- 2018 year-end adjustment--

Explanation:

gordon 77,600 - 73,200 = (4,100)

wallace 172,900 - 167,700 = 5,200

martin 63,500 - 65,100 = <u> (1,600) </u>

Total adjustment (500)

We will declare as other comprehensive incoem the unrealized loss of 500 dollar for the period

At sale date we compare the proceeds and the cost to check for the earning or losses:

1,500 shares x $45 each less 1,200 fees = 66,300

gordon shares book value <u>(73,200)</u>

loss on investment 6,900

Earnhart corp:

700 shares x $75 each plus 1,300 fees: 53,800

year-end adjusting 2018

earnhart 50,100 - 53,800 = (3,700)

wallace 61,700 - 65,100 = (3,400)

martin 167,700 - 167,700 = <u> 0</u>

unrealized loss (7,1 00)

3 0

4 years ago

Rodney Halpern works in the marketing department of a major manufacturing firm. Much of his job involves managing the movement o

fredd [130]

Answer:

Letter D is correct. <u>Supply chain management.</u>

Explanation:

It can be said that Rodney's professional responsibilities focus on supply chain management. The entire logistical process of a product or service, ranging from its manufacture to its delivery to the final consumer can be defined as a supply chain.

Rodney's job is to ensure that the flow of all stages that make up the production process, such as raw materials, work in progress, finished products, and information are managed correctly so that there is an effective supply chain, which ensure delivery of products and services to the right place at the right time.

5 0

3 years ago