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3 years ago

What factors affect the time value of money and the cost of borrowing money?

1 answer:

5 0

1.Interest rates
The interest rate level is moved higher or lower by a country's central bank to either stimulate or slow down an economy. Higher interest rates impose a more costly fee to borrow money while lower interest rates lessen the fee and usually spur more borrowing

2.Economic growth
The strength of an economy can go a long way to boosting the strength of the nation's currency. A strong growth rate in a country will see a growing demand for products and services with better job prospects for workers as well as being an attractive destination for capital and investments.

3.Inflation
When a product rises in price, it signals that there is an underlying demand for that product. Higher prices may not seem good to a consumer, but it is generally considered healthy for a country to have a moderate increase in inflation in a growing economy.

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Two employers, A and B, pay the same wage but Employer A faces a more inelastic supply curve of labor than Employer B. Both firm

Savatey [412]

Answer:

B.) Employer A will employ more capital than Employer B.

Explanation:

8 0

3 years ago

Accrued salaries payable of $100000 were not recorded on December 31, 2017. Office supplies on hand of $57000 on December 31, 20

Dennis_Churaev [7]

Answer:

In 2017

Net Income and Retained Earning are overstated by $100,000

Expenses and Payables are understated by $100,000.

In 2018

Inventory, Net Income and Retained Earning are understated by $57,000

Expenses are overstates by $57,000

Explanation:

Accrued Salaries is Recorded as follow

Dr. Salaries Expense

Cr. Salaries Payament

Non recording of this entry will result in understatement of Expenses and Payables by $100,000 over statement of Net income and retained earning by the same amount.

Treatment of Office supplies of $57,000 as expense will overstate the expenses and understate the the inventory, Net income and Retained Earning.

7 0

3 years ago

According to the california insurance code, what is the maximum penalty per violation for anyone who unwillfully commits an unfa

morpeh [17]

Accord According to the California Insurance Code, any individual who unwilfully takes part in an out of line strategy for rivalry is obligated to the state for a fine of up to $5,000 per infringement. In the event that the demonstration is resolved to be headstrong, the fine won't surpass $10,000 per act.

4 0

3 years ago

On January 2, 2013, Gant Co. purchased a franchise with a useful life of five years for $60,000 and an annual fee of 1% of franc

inysia [295]

Answer:

$48,000

Explanation:

The computation of the amount that should be reported as the intangible asset franchise is shown below

= Purchase value of franchise - amortization per year

= $60,000 - ($60,000 ÷ 5 years)

= $60,000 - $12,000

= $48,000

hence, the amount that should be reported as the intangible asset franchise is $48,000

6 0

3 years ago

The public relations manager of an oil company explained what the company intended to do to tackle the threat to marine life cau

mars1129 [50]

Answer:

He is acting as a spokesperson.

Explanation:

According to Mintzberg, Spokesperson is the person who is responsible for representing company on a public forum and is not associated with management of companies core operation.

4 0

3 years ago