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Studentka2010 [4]
4 years ago
5

Yesterday, the president of RB Enterprises received a phone call from DLK, a competitor. DLK is a sole proprietorship. An unexpe

cted family situation has caused the owner to suddenly want to retire and relocate closer to his family. Thus, the assets of DLK are being offered to RB Enterprises at a bargain basement price. While RB Enterprises had not anticipated purchasing these assets, it was decided that the opportunity was too good to pass up. This illustrates which of the following needs to hold cash?
A. precautionary
B. transaction
C. speculative
D. compensation
E. float
Business
1 answer:
luda_lava [24]4 years ago
7 0

Answer:

Speculative

Explanation:

Investors/ traders normally use this tactic to hold cash so as to make the best use of any investment opportunity that may come up

Keeping all money invested doesn't always provide the best solution  all the time. Maintaining some  amount of liquidity in one's portfolio is one of the top priorities for an investor. Generally, investors keep a fair amount of such cash with them so as to earn higher profits.

.In such a situation as RB enterprises was put in , the cash kept  aside by the them equips him to exploit such an attractive investment opportunity. This is known as speculative motive.

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7 0
3 years ago
The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11300 gallons of direct materials that a
Zanzabum

Answer:

9,200 favourable

Explanation:

Calculation for direct materials quantity variance for last month

First step is to calculate the Standard quantity

Standard quantity = 6,800 units × 2 gallons

Standard quantity = 13,600gallons

Now let Calculate direct materials quantity variance for last month Using this formula

Direct materials quantity variance = Standard Price × (Standard Quantity - Actual Quantity)

Let plug in the formula

Direct materials quantity variance = $4 × (13,600 gallons - 11,300gallons)

Direct materials quantity variance = $4 × 2,300 gallons

Direct materials quantity variance = $9,200 favorable

Therefore The direct materials quantity variance for last month was $9,200 favourable

8 0
3 years ago
The appropriate discount rate for the following cash flows is 8 percent compounded quarterly.
NISA [10]

Answer:

Total PV= $2,736.39

Explanation:

Giving the following information:

Year Cash Flow

1 $ 870

2 950

3 0

4 1,540

<u>First, we need to calculate the real annual discount rate:</u>

Quarterly Discount rate= 0.08/4= 0.02

Real annual interest rate= [(1+i)^n] - 1

Real annual interest rate= [(1.02^4) - 1]

Real annual interest rate= 0.08243

<em><u>Now, we can calculate the present value of the cash flows:</u></em>

PV= Cf/(1+i)^n

Year 1= 870/1.08243= 803.75

Year 2= 950/1.08243^2= 810.82

Year 4= 1,540/1.08243^4= 1,121.82

Total PV= $2,736.39

7 0
3 years ago
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3 years ago
After the first night of her three-night stay, ms. welk complained about the noise from the lounge on the floor below her room.
kumpel [21]

This transaction is called account allowance. Account allowance includes two kinds of transactions – to reduce in the folio balance compensation for poor service and the other one is to correct posting mistakes after the close of business. This kind of transaction is recognized by the usage of an allowance voucher, allowance vouchers are typically necessitate management endorsement.

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