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3 years ago

What does it mean to say that "banks create money"?

1 answer:

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The process wereby banks make loans equal to amount of their excess recerves and create new checkbook money is known as multiple deposit creation each time a bank recieves a deposit it sets aside some of it to meet reserve requirements and may lend an amount equal to the remaing excess reserves

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* What items make an Water based stain?

kumpel [21]

Answer:

rust + vinegar = silver gray to black; chewing tobacco + ammonia + water = brown; walnut husks

Explanation:

4 0

3 years ago

The prepaid insurance account had a beginning balance of $6,600 and was debited for $2,300 for premiums paid during the year. Jo

____ [38]

Explanation:

The adjusting entry is as follows

Insurance expense A/c Dr $4,800

To Prepaid insurance A/c $4,800

(Being the insurance expense is recorded)

The computation is shown below:

= Beginning balance + debited amount - unexpired insurance amount

= $6,600 + $2,300 - $4,100

= $4,800

So while preparing the adjusting entry, we debited the insurance expense account and credited the prepaid insurance account

8 0

3 years ago

Northwestern Lumber Products currently has 17,500 shares of stock outstanding. Patricia, the financial manager, is considering i

SpyIntel [72]

Answer:

15,101.15 shares

Explanation:

Northwestern Lumber products has =17,500 shares of stock

The Manager Patricia considers issuing $135,000 of debt, at an interest rate of 6.6%

Let us find how many shares of stock will be outstanding once the debt is issued,

Given that

$65,000/17,500 = ($65,000 − 135,000(.066))/X

Then X = 15,101.15 shares

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3 years ago

The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash

lys-0071 [83]

Answer:

2021 Balance Sheet

$5,900 Cash

$29,000 Accounts Receivable

$6,500 short-term investments

$69,000 Inventory

$110,400 TOTAL CURRENT ASSETS

$ 165,000 Property, plant, and equipment (net)

$165,000 TOTAL NON CURRENT ASSETS

$275,400 TOTAL ASSETS

$48,000 Accounts Payable

$1,000 Interest Payable

$20,000 Salaries Payable

$69,000 TOTAL CURRENT LIABILITIES

$39,000 Long Term Notes Payable

$39,000 TOTAL NON CURRENT LIABILITIES

$108,000 TOTAL LIABILITIES

$145,000 Paid in Capital

$22,400 Retained Earnings

$167,400 TOTAL EQUITY

$275,400 TOTAL EQUITY + LIABILITIES

Explanation:

To complete the Total Current Assets is necessary to find the Short Term Investments, which is possible to know because the current ratio must be 1,6.

With this information it's possible to know that the total current Asssets are $110,400, and the Short Term Investments are $6,500.

To complete the Balance Sheet we need to know the total Retained Earnings that equilibrate the Accounting equation, that is $22,400.

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3 years ago

Settings alzania produces and consumes 500,000 tons of cotton during a year. Reports indicate that alzania's neighbor, which a

UkoKoshka [18]

Answer: C- Alzania's neighbor exported half its production of cotton that year

Explanation: Alzania produces and consumes 500,000 tons of cotton during a year. While, the neighbor which also employs the same number of people in the cotton industry, consumed 400,000 tons of cotton. There is no information on production of the neighbor. Just by looking at the consumption units we can argue that Alzania has an absolute advantage over the neighbor as it consumes more. However, if there is any information on the amount of exports of cotton from the neighbor then it will weaken the absolute advantage conclusion.

Thus, if Alzania's neighbor exported half its production of cotton that year the total production of cotton is greater of the neighbor than Alzania.

6 0

3 years ago