Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The answer is: C) Investment spending by businesses varies inversely with the interest rate.
Explanation:
This statement is true all the time. When a company evaluates the costs and benefits of an investment, interest rate plays a fundamental part in those calculations. The two basic reasons for that are:
- The higher the interest rate a company (or any individual) has to pay for a loan, the harder it is for the company to repay the loan.
- The interest rate a bank charges is usually correlated to the opportunity cost of an investment. The higher the interest rates banks charge, the higher the internal rate of return (which is used to calculate the Net Present Value of an investment) will be. This is because banks don´t print money, they take in deposits and then they loan the money the someone else. So if the interest rate the bank charges is high, usually the interest rates the bank pays for the deposits is also high. Instead of investing, a company might just put their money on the bank and earn a better return rate.
Answer:
The correct answer is letter "A": Price uncertainty but not execution uncertainty.
Explanation:
When talking about trading orders, a market order is executed whether to buy or sell a security at market price. The market order does not follow the security's price at the bid or ask, it usually follows the last price at which the security was sold. Thus, that <em>price is always uncertain.</em>
The benefit of market order relies on the execution. Traders will not have to wait until another trader is willing to buy or sell at their desired level. The <em>market order will execute the order almost automatically</em> at the price the market has available.
<u>Solution:</u>
Deffered revenue means when an organization receives the payment prior to the goods delivered to conusmer. In the given case, business receives $3000 on 1, January for ten month service (From january to October).
<u>The revenue per month needs to be calculated:</u>
Revenue per month = Revenue for ten months divided by Total number of months
By putting the figures we get,
Revenue per month = $3000 divided by 10 = $300 per month
An adjusting entry needs to be passed:
Date Particulars debit credit
31st jan Unearned Revenue $300
Service Revenue $300
( Service revenue that has been collected in advance)
Explanation:
Breakeven=fixed cost/selling price - variable cost
so 14,300000/380-250
14,300000/130 = 110,000 units to be able to make break even
