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3 years ago

The first step in creating a budget is to identify your expenses. true or false.

Business

2 answers:

Lerok [7]3 years ago

6 0

Answer: True

Explanation:

Yes, the given statement is true that the initial or the first step of creating a proper budget we always create a list and then identify our expenses according to the specific requirement.

We should always keep the all the financial records regularly so that we can make the proper budget list of the expenses. The budget is basically depend upon the individual living requirement, expenses and the income.

sergij07 [2.7K]3 years ago

5 0

The answer is True. Hope this helps

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A firm currently produces 1000 units of output and has total costs of $15,000 and fixed cost of $3,000. What is the firm’s avera

denpristay [2]

Explanation:

Explanation: The formula is ATC = AFC + AVC. Use this formula. It will be useful for you

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3 years ago

Projects A and B both require an initial investment of $100,000. Project A produces $200,000 in cash flows in the subsequent 5 y

Marysya12 [62]

Answer:

d. The NPV of project A will be more sensitive to changes in the cost of capital compared to the NPV of project B

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The sensitivity to cost of capital can he determined by calculating the npv using different cost of capitals.

Net present value can be calculated using a financial calculator.

For the first project:

Cash flow in year zero = -100,000

Cash flow each year from year one to five = 200,000

Npv when I is 8% = 698,542.01

Npv when I is 10% = 657,157.35

NPV when I is 12% = 620,955.2

For the second project:

Cash flow in year zero = -100,000

Cash flow in year one = 400,000

Cash flow in year two = 300,000

Cash flow in year three = 200,000

Cash flow in year four and five = 50,000

Npv when I is 8% = 757,119.12

Npv when I is 10% = 727,029.95

NPV when I is 12% = 698,804.32

The percentage change in the npvs of project A is greater than the percentage change in npv of project b when different cost of capitals are used. Thus, project A is more sensitive to cost of capital.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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4 years ago

In the United States, the money supply is determined: A) only by the Fed. B) only by the behavior of individuals who hold money

Thepotemich [5.8K]

Answer: Joint by the FED and by the behavior of individuals who hold money and of banks which money is held.

Explanation: The Federal Reserve System, often referred as the Federal reserve or simply "the fed", is the central bank of the united states. It was created by the congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. The FED was created on December 23, 1913, when president Woodrow Wilson signed the FEDERAL RESERVE ACT into law. The Fed and the behavior of individuals not only define how much money are available, they can also define macroeconomic indicators like inflation.

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3 years ago

Arnold gave land to his son, Bruce. Arnold's basis in the land was $100,000, and its fair market value at the date of the gift w

Leona [35]

Answer:

A) Bruce's basis in the land at the time of the sale = $100,000 (same as his father's)

B) When computing his realized gain, what amount does Bruce use as the selling price and as the contract price?

Selling price= $360,000.

Contract price = $360,000 (selling price) - $120,000 (assumed mortgage) = $240,000.

C) Bruce's total realized gain on the sale = $360,000 - $10,000(selling costs) - $230,000(land + improvements) = $120,000

But his recognized gain in the year of the sale is = ($120,000 / $240,000) x $90,000 = $45,000

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3 years ago

Which of the following is an advantage of consumer credit?

Ksivusya [100]

D. It can allow you to save money if you time your purchases correctly.

For example, you could purchase something when it goes on sale and pay it off with minimal interest rather than waiting to save up money and buying at full price. (the other answer choices are all disadvantages to consumers).

8 0

3 years ago