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trapecia [35]
3 years ago
5

Not adjusting the amounts reported in the financial statements for inflation is an example of which basic assumption or principl

e of accounting?a. Economic entity. b. Going concern. c. Historical cost. d. Full disclosure.
Business
1 answer:
erik [133]3 years ago
4 0

Answer:

c. Historical cost.

Explanation:

Based on the information provided within the question it can be said that this statement is an example of the basic principle of accounting known as historical cost. This term refers to using the value of something based on the original cost of when it was acquired and not adjusting the amounts for inflation or other newer variables.

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You buy a $10,000 par treasury bill at $9,575 and sell it 60 days later for $9,675. what was your ear?
Dahasolnce [82]
To find the EAR:

EAR = (sold price/purchase price)^(days in year/days you had it) -1
EAR = (9,675/9,575)^(365/60)-1
EAR = .06524 

Then to make the decimal a percentage multiply the answer by 100.
EAR = .06524(100)
EAR - 6.52%
5 0
3 years ago
Read 2 more answers
How can money in a savings account grow
Masteriza [31]
The bank puts interest in your account because they take sum of it to loan to ppl and it’s goes through a lot and comes back to your account and then sum
7 0
3 years ago
Huprey Co. is the defendant in the following legal claims. For each of following claims, does Huprey (a) record a liability, (b)
salantis [7]

Answer:

1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,280,000, it is probable that Huprey will lose the case.

  • Record a liability.  

2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable.

  • Disclose in notes.

3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case.

  • Have no disclosure.

Explanation:

Contingent liabilities must be recorded only when it is probable that the liability will happen and you can estimate the associated costs.

When contingent liabilities are only reasonably possible or you cannot estimate the amount, they must be included in the footnotes of the financial statements.

When contingent liabilities are not reasonably possible, nothing needs to be disclosed.

7 0
3 years ago
Interest rates on 3-year Treasury securities are currently 1.92%, while 10-year Treasury securities yield 5.62%. If the pure exp
FromTheMoon [43]

Answer: 7.24%

Explanation:

From the question, we are told that:

3 years treasury securities have an interest rate = 1.92%

10 years treasury security has an interest rate = 5.62%

Let the 7 year treasury security interest in 3 years be represented by z.

Based on the expectation theory

( 1+1.92%)^3 × (1 + z%)^7 = (1 + 5.62%)^10

(1+0.0192)^3 × (1 + z%)^7 = (1 + 0.0562)^10

(1.0192)^3 (1 + z%)^7 = (1.0562)^10

1.05871(1 + z%)^7 = 1.72767

Divide both side by 1.05871

(1 + z%)^7 = 1.72767/1.05871

(1 + z%)^7= 1.6319

1 + z% = 1.6319^1/7

1 + z% = 1.6319^0.1429

1 + z% = 1.0724

z% = 1.0724 - 1

z% = 0.0724

We then convert the decimal to percentage

z = 7.24%

The market believes that 7-year Treasury securities will be yielding 7.24% in 3 years .

3 0
3 years ago
A network structure is:
olga_2 [115]
None of the above
Explanation: The network structure is a newer type of organizational structure viewed as less hierarchical (i.e., more "flat"), more decentralized, and more flexible than other structures. In a network structure, managers coordinate and control relationships that are both internal and external to the firm.
8 0
3 years ago
Read 2 more answers
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