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3 years ago

Money received today is worth more than the same amount of money received sometimes in the future is

Business

2 answers:

Shtirlitz [24]3 years ago

3 0

Most likely its the other way around

Vsevolod [243]3 years ago

3 0

Yes, the statement is right (at least for most part). Let's consider a simple example. Let's assume you had two choices:
1.) take $1 today or 2.) take $1 next year. Taking $1 today is a better option because you don't have to deal with what could happen in the future. The $1 might not be there in the future. One lesson from this example is that money received today has little to no risk as compared to the same amount received in the future.

Another reason while money has more worth today than money received sometimes in the future is because of inflation. Most items prices increase every year. e.g. college tuition, milk, etc.

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If a stock's dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The sto

Sveta_85 [38]

Answer:

d. The stock's price one year from now is expected to be 5% above the current price

Explanation:

From the dividend grow model we got that price of a share is:

$\frac{divends_1}{return-growth} = Intrinsic \: Value_1$

next year the dividend will be higher in proportion to dividend growth:

$\frac{divends_1}(1+g){return-growth} = Intrinsic \: Value_1$

Thus, we can rearrenge as:

$\frac{divends_1}{return-growth} (1+g)= Intrinsic \: Value_2$

$Intrinsic \: Value_1 (1+g)= Intrinsic \: Value_2$

This makes d statement correct.

8 0

3 years ago

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

Sedbober [7]

Answer:

The bad debts would be debited with $5,000.

Explanation:

The bad debts under the allowance method is calculated by either as a percentage of accounts receivables or as a percentage of sales.

Percentage of Sales method:

In the percentage of sales method the allowance is calculated as below:

Allowance for doubtful debts = Sales * Percentage for doubtful debts

Allowance for doubtful debts = $500,000 * 1% = $5,000

Now always remember that this amount will be used only and their is no need to include the allowance for doubtful accounts balance.

Whereas on the other hand, in the percentage of accounts receivable method the allowances are included in the amount calculated.

The entry would be:

Dr Bad Debt Expense $5000

Cr Allowance for Doubtful Debts $5000

8 0

3 years ago

Question 2 of 64

ella [17]

Answer:

c. dependent variable

3 0

3 years ago

Swifty Company has just received the August 31, 2020, bank statement, which is summarized below.

OverLord2011 [107]

Answer:

A. Correct cash balance $15,396

Correct cash balance $15,396

B. Aug 31 2020

Dr Cash $1,436

Cr Notes receivable $1,381

Cr Interest revenue $55

Aug 31, 2020

Dr Bank service charges $28

Cr Cash $28

Aug 31, 2020

Dr Supplies expenses $18

Cr Cash $18

Explanation:

A. Preparation of a bank reconciliation dated August 31, 2020

Bank reconciliation

Balance as per bank statement august 31, 2020 11,170

Add Cash on hand $428

Add Deposit in transit $5,248

Less: Outstanding checks ($1,450)

Correct cash balance $15,396

Balance as per books august 31, 2020 (13,879+48,335-48,208) $14,006

Add: note and interest collected $1,436

Less:Bank service charges ($28)

Less Understated for supplies ($18)

($165+$147)

Correct cash balance $15,396

B. Preparation of the adjusting entries.

Aug 31 2020

Dr Cash $1,436

Cr Notes receivable $1,381

($1,436-$55)

Cr Interest revenue $55

Aug 31, 2020

Dr Bank service charges $28

Cr Cash $28

Aug 31, 2020

Dr Supplies expenses $18

Cr Cash $18

($165+$147)

5 0

3 years ago

Single-loop learning, according to management professor Chris Argyris, is most appropriate when the environment is _____________

Hatshy [7]

Answer:

The correct answer are: Stable, high level, little

Explanation:

Chris Argyris studied the concept of organizational learning how it affects a company.

In his theories, he focused on single loop and double loop learning. He was of the view that single loop learning, in contrast to double loop learning, do not address the issues that affect a company and make it ineffective.

Single loop learning is said to be present when organizational structures such as goals, values, frameworks are taken for granted.

Chris, thus advocates that single loop learning is appropriate for stable environment, where goals and objective are highly certain and complex measures of performance are required very little.

Otherwise double loop learning should be opted.

5 0

3 years ago