Answer:
D) $1120
Explanation:
The goods Sally purchase were $1440, and with the 25% discount, she would have paid $1080, because 25% of $1440 is $360. Since she returned 1/3, she would have only spent $720, because $1080/3 is also $360. $720+$400 from the beginning would be $1120
Answer: c. Structural unemployment
Explanation:
Susie lost her job due to competition, someone could offer better than what she offer, the loss of job was not as a result of downsizing but rather a structural unemployment.
Answer:
Option (d) is correct.
Explanation:
Given that,
Beginning work in process = 15,000 units
Assembly Department started = 30,000 units
Units completed = 35,000 units
Ending work in process:
= Beginning work in process inventory + Additions during the year - Units completed and transferred out
= 15,000 + 30,000 - 35,000
= 10,000 units
Therefore, the ending work in process is 10,000 units.
Answer: b. The duration of its liabilities must equal the duration of its assets
Explanation:
Since the company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk, then the duration of its liabilities must equal the duration of its assets.
It should be noted that when the duration of its liabilities is shorter than the duration of its assets, the duration gap is positive and when there's a rise in interest rate, the worth of assets will be affected more.
When duration of its liabilities is longer than the duration of its assets, the duration gap is negative and when there's a rise in interest rate, the worth of liabilities will be affected more.
Finally, when the duration of its liabilities is equal the duration of its assets, its equity is unaffected by interest rate risk.
