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scoray [572]
3 years ago
8

Which of the following transactions would cause a decrease in both assets and stockholders' equity? A) Paying advertising for th

e current month. B) Purchasing office equipment on account. C) Paying insurance premium for the next two years. D) Providing services to customers on account.
Business
1 answer:
Rainbow [258]3 years ago
5 0

Answer:

A) Paying advertising for the current month

Explanation:

Stockholder equity is the remaining amount of assets available to shareholder after all the liabilities have been paid. Incurring an advertising budget for that month again is going to reduce their equity and also asset likewise because it is an expense.

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last year, you earned a rate of return of 7.55 percent on your bond investments. during that time, the inflation rate was 2.19 p
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The real rate of return is 3.15%.

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The annual percentage of financial gain on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of the a given sum of money over time. The investor can calculate how much more of a nominal return seems to be real return by adjusting this same nominal return to account for inflation. Investors must account for the effects of additional factors, including such taxes and investing fees, in addition to adjusting for inflation, in order to calculate real returns on their investments or to make investment decisions. Subtracting this same nominal interest rate from the inflation rate yields the real rate of return.


1+real rate = (1+rate of return) / (1+inflation)
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