Answer:
a. Product X = 3.50 years
Product Y = 3.25 years
b. Product Y
Explanation:
The cash flows for the two products as well as the balance at the end of each year is given as follows:
For both products, the payback period is reached between the third and fourth year.
Product X:
Product Y:
Under the payback method, the alternative that presents the shortest payback period should be selected. Therefore, Product Y should be selected.
Answer:
Liquidity: amount of cash or cash equivalents and its primary feature of converting quickly into money without losing any of it current value.
1)_ Dollar bill
2)_ Saving account
3)_ Checking account
4)_ Gold bar
5)_ Corporate stock
6)_ Money market mutual fund
7)_ House
Explanation:
To begin with, the liquidity is the feature of those assets to converting the most quickly as possible in cash and therefore the the most liquid asset is properly the dollar bill and the less liquid asset is the house due to the fact that it could take years to sell by a proper offer and becoming actual cash. In conclusion, it works that way with all the other assets, the liquidity of each one is higher or lower depending on the quickness of converting into cash.
A.
None of the other answers make sense.
Critical thinking involves deep thought into a problem while also factoring other events into play.
Answer:
Feb. 1 DR Cash $400,000
CR Tax anticipation notes $400,000
Dec 31 DR Expenditures - Interest $3,666.67
CR Accrued Interest Payable $3,666.67
Working
February to December = 11 months
Interest = 400,000 * 1.0% * 11/12 months = $3,666.67
April 1 DR Investments $100,000
CR Cash $100,000
Sept. 30 DR Cash $50,200
CR Investments $50,000
Interest Income $200
Working
Interest Income = 50,000 * 0.8% * 6/12 months
= $200
Using fiscal policy to stabilise the economy is difficult because there are time lags involved in the use of fiscal policy.
Explanation:
Tax policy applies to the implementation of government spending and tax measures, including competition for goods and services, wages, inflation and economic development to affect the dynamics of the economy.
Taxes policy is decisions of the government on investment and taxes. When a government wants to promote economic growth, spending on goods and services must increase. The need for goods and services would then increase. A reduction in government expenditure would reduce the economy's total demand.
