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3 years ago

Which accounting concept requires that the value of economic data be recorded in dollars?

Business

1 answer:

defon3 years ago

5 0

Answer:

Unit of measure concept

Explanation:

In accounting, there is a standard convention that stipulates that all transactions must be consistently recorded using the same currency, in the case the dollars. This is what is known as the unit of measure concept.

In a case or cases where there are transactions that are carried out in currencies other than the USD, what is done is that there is a conversion between the values in the other currency and in the USD.

It is essential that there is a consistency in the unit of measurement as an absence in consistency would make it difficult for financial statements to be produced

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Dee Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows$4,000from her bro

levacccp [35]

Answer:

A. The stock is purchased for $40 x 300 shares = $12,000.

Given that the amount borrowed from the broker is $4,000, Dee's margin is the initial purchase price net borrowing: $12,000 - $4,000 = $8,000.

B. If the share price falls to $30, then the value of the stock falls to $9,000. By the end of the year, the amount of the loan owed to the broker grows to:

Principal x (1 + Interest rate) = $4,000 x (1 + 0.08) = $4,320.

The value of the stock falls to: $30 x 300 shares = $9,000.

The remaining margin in the investor's account is:

Margin on long position = "Equity in account " /"Value of stock"

= "$9,000 － $4,320" /"$9,000" = 0.52 = 52%

Therefore, the investor will not receive a margin call.

C. Rate of return = "Ending equity in account － Initial equity in account" /"Initial equity in account"

= "$4,680 － $8,000" /"$8,000" = - 0.4150 = - 41.50%

7 0

3 years ago

What is the difference between absolute advantage and comparative advantage?

Yuliya22 [10]

Comparative advantage<span> refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another.Hope you like:)</span><span>
</span>

6 0

3 years ago

Read 2 more answers

An analyst asked to perform a TCO analysis for a system would need to take into account

balu736 [363]

Can you dm me for the answer I’m not home rn I’m trying to help out a lot of people

4 0

3 years ago

By shutting down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou

wel

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period are paid at a later period. Thus option B is incorrect.

Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost. Hence option C is incorrect.

Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its sunk cost. Hence option D is incorrect.

Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

4 0

3 years ago

If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%. a.

PolarNik [594]

Answer: False

Explanation:

The price elasticity of supply measures the change in quantity supplied when the price changes.

The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.

Price elasticity of supply = %Change in quantity supplied / % change in price

0.5 = -6% / Change in price

0.5 * Change in price = -6%

Change in price = -6% / 0.5

= -12%

The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%

3 0

3 years ago