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4 years ago

Which of the following statements about the business cycle is correct?

1 answer:

5 0

The statement “Certain financial actions are more profitable in busts and others more profitable in booms” is correct about the business cycle.

Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence. Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.

The correct answer between all the choices given is the last choice or letter D. I am hoping that this answer has satisfied your query and it will be able to help you in your endeavor, and if you would like, feel free to ask another question.

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Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2016, as a long-term investment. Management h

stiv31 [10]

Answer:

A) July 1, 2016, 3% bonds are acquired as long term investment.

Dr Investment in 3% bonds 720,000

Cr Cash 600,000

Cr Discount on investment in 3% bonds 120,000

B) December 31, 2016, interest earned from investment in 3% bonds.

Dr Cash 10,800

Dr Discount on investment in 3% bonds 1,200

Cr Interest revenue 12,000

Explanation:

the bonds' face value is $720,000 but since the company paid only $600,000 for them, it means that it bought them at a discount price. Therefore, the discount, $720,000 - $600,000 = $120,000, must be recorded, and later amortized.

To calculate the amount of interest revenue that will be amortized as discount on investment:

(bonds' market price x market interest rate x 1/2) - (bonds' face value x coupon rate x 1/2) = ($600,000 x 4% x 1/2) - ($720,000 x 3% x 1/2) = $12,000 - $10,800 = $1,200

8 0

4 years ago

Read 2 more answers

Derived demand means the demand for industrial products and services is driven by, or derived, from: Group of answer choices

SIZIF [17.4K]

Answer:

The correct answer is letter "D": demand for consumer goods and services.

Explanation:

Derived Demand refers to the demand proceeding from intermediaries of certain goods or services. This type of demand is typically associated with requests for products (tangibles and intangibles) that have the capacity of producing goods or services.

Thus, the derived demand for industrial products is derived by the demand of the final consumers who are in charge of manufacturing the goods or rendering the service.

5 0

3 years ago

when darla prepares her company's balance sheet, she should include in the list of current assets. a. land b. equipment c. lease

lakkis [162]

When Darla prepares her company's balance sheet, she should include accounts receivable in the list of current assets. Option D

<h3>What are accounts receivable?</h3>

Generally, Accounts receivable, also known as AR or A/R, are claims for payment that are legally enforceable that are held by a firm for products delivered or services performed that consumers have requested but have not yet paid for. The abbreviation for accounts receivable is accounts receivable.

The money that consumers owe a firm for products or services that they have received but have not yet paid for is referred to as the company's accounts receivable.

For instance, the amount that is owed by consumers who buy things on credit is added to the accounts receivable when such customers make their purchases.

In conclusion, When Darla is putting out the balance sheet for her firm, she needs to make sure that the list of current assets includes accounts receivable. The D Option

Read more about accounts receivable

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when darla prepares her company's balance sheet, she should include ___ in the list of current assets. a. land b. equipment c. leased property d. accounts receivable

6 0

1 year ago

Antonio would like to replace his golf clubs with a custom-measured set. A local sporting goods megastore is advertising custom

AlexFokin [52]

Answer:

Antonio and Replacement of Golf Clubs

a. He should cash the CD and use the proceeds to finance part of the golf clubs.

b. The reason is that he would pay more in in-store financing totaling $37.06 per annum than the net interest he would generate from the CD totaling $23.18 per annum. And Antonio would incur a net loss of $13.88 if the CD was renewed unlike the $5.74 if the CD were not renewed.

Explanation:

Option 1: Renew Certificate of Deposit (CD):

Interest earned = $33.48 ($600 * 5.58%)

Taxes = 10.30 ($33.48 * 30.75%)

Net Income = $23.18

Cost of in-store financing = $37.06 ($710 * 5.22%)

Net Loss(overall) = $13.88 ($37.06 - $23.18)

Option 2:

Sale-off of CD = $600

Net financing required = $110 ($710 - $600)

Cost of financing = $5.74 ($110 * 5.22%)

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4 years ago

An aging of a company's accounts receivable indicates that $13900 are estimated to be uncollectible. If Allowance for Doubtful A

tino4ka555 [31]

Answer:the adjustment to record bad debts for the period will require a

Debit on Bad debt expenses for $ 12,670 and a credit To Allowance for doubtful accounts for $ 12,670

Explanation:

Account receivables for uncollectibles= $13,900

Allowance for Doubtful Accounts = credit balance of $1230

Adjusting entry for bad debts expense =Account receivables - credit balance of $1230

= $13,900- $1,230

=$12,670

Adjusting entry for the record of bad debts expense

Accounts titles Debit Credit

Bad debt expenses $ 12,670

To Allowance for doubtful accounts $ 12,670

8 0

3 years ago