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Amounts withheld from employee's earnings for the employee income tax is considered a liability by the employer until the government is paid
What is liability?
Liability means the obligation that one party owes another, whose settlement requires the indebted party to transfer cash or equivalent value of other benefits commensurate to the liability to the other party.
In this case, the employees owe the government income taxes, whereby the employees have discharged the obligation by having the employers deduct them from their earnings.
The onus is now on the employers to make payments in respect of the income taxes withheld to the tax authority, prior to which the taxes are treated as the employer's liability.
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Missing options:
(A) assets. (B) liabilities. (C) salary expense. (D) revenue.
Answer:
Stock R more beta than Stock S = 4.2%
Explanation:
given data
Stock R beta = 1.8
Stock S beta = 0.75
expected rate of return = 9% = 0.09
risk-free rate = 5% = 0.05
solution
we get here Required Return
Required Return (Re) = risk-free rate + ( expected rate of return - risk-free rate ) beta ...........1
Required Return (Re) = 0.05 + ( 0.09 - 0.05 ) B
Required Return (Re) =
so here
Stock R = 0.05 + ( 0.09 - 0.05 ) 1.8
Stock R = 0.122 = 12.2 %
and
Stock S = 0.05 + ( 0.09 - 0.05 ) 0.75
Stock S = 0.08 = 8%
so here more risky stock is R and here less risky stock is S
Stock R is more beta than the Stock S.
Stock R more beta Stock S = 12.2 % - 8%
Stock R more beta Stock S = 4.2%
Answer:
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Answer:
The answer is option B) According to the Lewis two-sector model the creation of a Modern (urban) Sector will:
Create a flow of labor from the traditional sector into the modern sector.
Explanation:
The two sector model propounded by W. Arthur Lewis is a theory of development that identifies two sectors: the traditional and modern sector.
According to this theory, the creation of a modern sector will generate a flow of excess labor from the traditional sector to the urban sector where there is more demand for labor.
Over time, this migration will create more jobs, stimulate industrialization and a framework for sustainable development.
