Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
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Answer:
Opportunity cost
Explanation:
The opportunity cost Bob's brother Joe $20,000. Remember, the term Opportunity cost refers to the cost (loss in this context) incurred when one forgoes an alternative best option–holding them in a brokerage account, in place for a less beneficial one.
Thus, Bob chose the best alternative over his brother.
Answer:
Increase of $95,000
Explanation:
Stockholder equity: It records the issue of shares, retained earnings, and deduct the dividend amount if declared.
The expenses which are related to the business is directly or indirectly affect the stockholder equity.
So, the net effect is shown below:
Issuance of common stock = $200,000
Less - Payment of salaries expense = $105,000
So, the net effect would be equal to
= $200,000 - $105,000
= $95,000
The accounts payable does not affect stockholder equity. So, it would not be considered.
This $95,000 would increase stockholder equity.
The thing which usually happens during tight money periods, generally is:
- short-term rates are higher than long-term rates.
<h3>What is a Tight Money Period?</h3>
This refers to an economic policy in which there is the need for control of inflation in the economy by the financial institution in a country.
With this in mind, we can see that when this happens in the tight money periods, there is usually short term rates which are higher than long term rates because there is a need to control the economy which is rising too quickly.
Read more about inflation here:
brainly.com/question/1082634
