The answer that fits the blank above would be BALANCE SHEET AND INCOME STATEMENT. The balance sheet serves the copy of the liabilities and assets that a company or firm has recorded for a specific period of time. On the other hand, the income statement shows both the profit and loss that the company has. Therefore, it is based on these two that financial managers are able to calculate ratios.
Answer:
E. All the statements are correct
Explanation:
i. Corporations rarely pay tax on the interest income.
This statement is correct. Some companies do not even pay any income taxes.
ii. Higher tax bracket people tend to buy municipal bond because it is federal tax exempt.
Correct, people who have high incomes, and are subject to a high federal income tax rate often buy municipal bonds because these bonds are exempt from federal income tax.
iii. Short term capital gain and long-term capital gain are treated differently for individuals.
Correct. Short-term capital gains are those obtained from the sale of property that was owned for less than one year. This gains are often treated with the highest tax rate.
Long-term capital gains are those obtained from the sale of property that was owned for more than one year, and are treated with more favorable tax rates.
iv. The corporate tax rates in the U.S. is one of the lowest among the developed nations.
This statement is correct. The corporate tax rate in the U.S. is a nominal 21% (the effective rate can be as low as 0% for some companies). This is one of the lowest rates among developed nations, whose rates hover around 25 to 30% on average.
True, you don’t want to spend more money on wants instead of needs because if you do you won’t have enough money for things that you really need.
Answer: net exports
Explanation:
Balance of payment simply shows the estimation of the inflows and outflow of a nation's money for a certain year. It should be noted that current account of the balance of payment consists of three main components which are the trade in Goods, the trade in services, and the transfer payments.
The trade in goods is segregated into imports and export. This therefore makes the net exports volatile and vital because it has higher share in a current account.
<u>Solution and Explanation:</u>
Breakeven point = Fixed cost divide by Contribution margin
Contribution margin = Sales minus Variable cost.
Fixed cost
Particular Amount
Salaries $5000
Utilities $1100
Depreciation $1200
Maintenance $780
Total Fixed cost = $8,080.
Variable cost =Maid services plus Other cost = $7 plus $13 = $20
Contribution = $40 minus $20 = $20.
Breakeven point in number = $8080 divide 20 = 404 rented rooms per month.
Breakeven point in $ = Breakeven point rented rooms × rent cost.
=> 404 rooms multiply $40 = $16,160.
