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Lyrx [107]
3 years ago
10

Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year

. They are considered risk-free investments. Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated. Issued by corporations, these instruments can have maturities from 1-40 years. The risk depends on the financial strength of the issuing corporation.
Business
2 answers:
Bogdan [553]3 years ago
7 0

Answer: the US treasury bills

Explanation:

A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less. Treasury bills are usually sold in denominations of $1,000. However, some can reach a maximum denomination of $5 million in non-competitive bids. These securities are widely regarded as low-risk and secure investments.

The Treasury Department sells T-Bills during auctions using a competitive and non-competitive bidding process. Noncompetitive bids—also known as non-competitive tenders—have a price based on the average of all the competitive bids received. T-Bills tend to have a high tangible net worth.

jonny [76]3 years ago
7 0

Answer:

Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments. US TREASURY BILLS  or T-Bills are short term investments that are extremely secure, and lately provide a slightly higher yield than longer securities backed by the US government.  

Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk. COMMERCIAL PAPERS or promissory notes issued by corporations that have a maturity date of less than a year.

These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated. MONEY MARKET MUTUAL FUNDS  have the advantage of requiring low amounts for initial investments. Most of them require less than $2,000 to start investing with them, and some even require smaller amounts. They are considered very safe investments due to high portfolio diversification.

Issued by corporations, these instruments can have maturities from 1-40 years. The risk depends on the financial strength of the issuing corporation. CORPORATE BONDS are basically long term debt notes issued by corporations. They usually provide an annual or semi-annual coupon payment determined by the bond's interest rate. They are safer than stocks because in case something goes wrong with the corporation, bondholders are paid first.

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2 years ago
Sunland Corporation had net sales of $2,425,800 and interest revenue of $38,200 during 2020. Expenses for 2020 were cost of good
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Answer:

Prepare a single-step income statement for the year ended December 31, 2020

Explanation:

SUNLAND CORPORATION  

Inconme statement  

For the year endend December 2020  

 

 

Revenue  

Net Sales               2.425.800  

Interes Revenue             38.200  

Total Revenue        2.464.000  

 

Expenses  

Cost Of goods             1.458.200  

Administrative expenses 212.600  

Selling xpenses                 282.000  

Interes expense                   46.400  

Tax rate                                  139.440  

Expenses                       2.138.640  

 

Net income                           325.360  

 

Shares issued                     70210  

Earning p/share                        4,63  

7 0
3 years ago
The transactions of Spade Company appear below.
s2008m [1.1K]

Answer:

Entries are given

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

                                            DEBIT           CREDIT

A. Kacy Spade, owner, invested cash in the company

Common stock                   14250

Cash                                                           14250

B. The company purchased office supplies

Office supplies                      413

Cash                                                              413

C.The company purchased office equipment on credit

Office equipment                 7880

Payables                                                      7880

D.The company received $1,681 in cash

Cash                                       1681

Fees earned                                                 1681

E. The company paid $7,880 cash to settle the payable

Payables                                7880

Cash                                                              7880

F. The company billed a customer $3,021 as fees

Receivable                              3021

fees earned                                                   3021

G. The company paid $520 cash for the monthly rent.

Rental expense                        520

Cash                                                               520

H. The company collected $1,269 cash as partial payment

Cash                                         1269

Receivables                                                    1269

I. The company paid a $1,000 cash dividend to the owner

Retained earnings                  1000

Cash                                                                 1000

5 0
3 years ago
Which of the following is a potential danger of offering common stock to investors?
murzikaleks [220]

Answer :It doesn't allow the entrepreneur to raise enough money. -A.

6 0
3 years ago
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An investor in the 32% tax bracket is considering two investment options of equal risk: a corporate bond that yields 8.25% and a
Gala2k [10]

Answer: Corporate bond

Explanation:

It should be noted that the municipal bond aren't taxable. Therefore, its yield will be 4.75%.

On the other hand, the After Tax Cost of the yield of the corporate bond will be:

= Yield × (1-Tax Rate)

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= 8.25% × 65%

= 5.36%

Therefore, the Corporate Bond should be chosen since it has a higher yield.

7 0
3 years ago
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