The value of a bank's assets is than its liabilities, the bank is said to be <u>solvent</u>
<h3>What is assets?</h3>
Any resource that a company, an organization, or an economic body owns or controls is considered an asset. It encompasses everything that has the potential to generate gains in the economy. When turned into money, assets indicate the worth of ownership.
<h3>What do you mean by solvent in accounting?</h3>
A company's capacity to fulfill its short-term and long-term financial commitments is known as its solvency. One indicator of a company's financial health is its level of solvency, which reveals whether it will be able to continue running its business into the near future. Ratio analysis is a tool investors can use to assess a company's solvency.
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Answer:
$403,142
Explanation:
To calculate the amount of money that Harrison Inc. should record for its investment in Rhine Company on January 1, we have to add the initial cash payment plus the weighted future value of contingency.
total investment = $400,000 + $3,142 = $403,142
Answer:
d. $78,140
Explanation:
First, calculate their gas reimbursement: 36,000 x $0.54 = $19,440. Then, add all of the reimbursements up. Total is $78,170. Then, you need to deduct the $600 per month that is being payed each month. That total is $7,200. The total they make would be b. $70,970
The answer is (a). Goods can be touched, while services are providing labor and cannot be touched. For example, you cannot touch a haircut, while you can touch a burger.
Result of active fiscal policy : there may be stimulation of the economy in the short run, but there will be harmful effects to the economy in the long run.
Explanation:
Active fiscal policy implies that Congress and the President are actively attempting to shift the trajectory of the economy by adjustments in taxes and/or government expenditure.
In an open market, monetary policy often influences the rate of exchange and trade balance.
Moreover, in the long term, the development of international debt, which stems from large government expenditures, can lead investors to mistrust US assets which may trigger the exchange rate to fall.