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shtirl [24]
4 years ago
6

c. Which asset was riskiest during the Great​ Depression? How does that fit with your​ intuition? ​ (Select the best choice​ bel

ow.) A. The riskiest assets were the corporate bonds. Intuition tells us that company debt should be riskiest. B. The riskiest assets were the stocks in the​ S&P 500. Intuition tells us that large companies should be the riskiest. C. The riskiest assets were the small stocks. Intuition tells us that smaller companies should be riskiest. D. The riskiest assets were the Treasury Bills. Intuition tells us that government securities would be the riskiest.
Business
1 answer:
olga_2 [115]4 years ago
3 0

Answer:

The correct answer to the question is OPTION C (The riskiest assets were the small stocks. Intuition tells us that smaller companies should be riskiest.)

Explanation:

The riskiest assets were the small stocks.

The Great Depression was a term in the 20th century that became synonymous with hardship, suffering due significantly to the failure of the economy in the world with evidence of crash in the stock market.

The riskiest assets were the small stocks because it already crashed as panic made some stop investing and a lot of banks lost money. So small stocks were not lucrative again then, making it a risky asset to have.

Instinct tells us that smaller companies should be the riskiest because investing in smaller companies could be less lucrative due to a fall in the value of shares in tough times as compared to bigger companies.

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Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inv
AURORKA [14]

Answer & Explanation:

<u>a.- Revenues: </u>Increase for 3.2 millions

It will be recognize for the entire order, as it was deliveried entirely within the accounting period.

<u>b.- Earnings: </u> Increase for 1.5 millions

The earnings for the business will be the net between the revenues and expenses.

3.2 revenues - 1.7 expenses = 1.5 earnings

<u>c.- Receivables: </u> Increase for 1.8 millions

It will increase for the unpaid portion ofthe order.

<u>d.- Inventory</u> Decrease for 1.7 millions

It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.

<u>e.- Cash:</u> Increase for 1.4 millions

It will increase for the amount received from the customer. As it was no payment from the business in the transaction.

5 0
4 years ago
Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, t
Lana71 [14]

Answer:

Overhead rate is $30.4

So option (c) is correct option

Explanation:

We have given total estimated overhead = $85120

Estimated direct labor hours = 2800

Actual manufacturing overhead for the year = $86870

Actual labor hour = 2700

We have to find overhead rate for the year

Overhead rate is equal to the ratio of estimated overhead to estimated labor hour

Therefore overhead rate =\frac{85120}{2800}=30.4$

So option (c) is correct

3 0
3 years ago
Specific skills needed to accomplish specialized activities such as drafting and welding are known as ____ skills.
marshall27 [118]
Specialization like that is called as "technical" skills.
3 0
3 years ago
How to get startup money for a business
kirill [66]

Answer: get a lil side job a save until you have enough

Explanation:

4 0
3 years ago
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IrinaK [193]

Answer:

to explain any difference between the depositor’s balance per books with the balance per bank

Explanation:

The goal of this process is to ascertain the differences between the banks records and the depositor’s records and make accounting changes as deemed appropriate. There is a general flow that is used to make the correcting entries:

1. The process flow starts with the bank’s ending cash balance

2. Add any deposits made by the company to the bank that are in transit

3. Deduct any cheques that are uncleared by he bank

4. Add or deduct any other items available as necessary

5. In the company bank records, once again start with the ending balance

6. Deduct any bank service fees, penalties and NSF (Non-Sufficient Funds) cheques.

7. Add interests earned

At the end of this process, it is likely that both accounts would be equal and tally.

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3 years ago
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