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3 years ago

Define current assets. what basis is used for arranging individual items within the current assets section

1 answer:

5 0

Current assets are balance sheet accounts that represent the value of all assets that are expected to be converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash.
Accounts receivables, bills to customers that have yet to be paid, are considered current assets as long as thy can be expected to be paid within a year.

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Assume that interest rates on 20-year Treasury and 20-year corporate bonds are as follows T-bond = 3.72% AAA = 4.12% A = 4.64% B

Luba_88 [7]

Answer: Default risk differences.

Explanation:

The Default risk is the inherent risk a lender faces that a borrower will not pay them back the debt they want to borrow. The lender will therefore charger a high return to cater for this risk. The higher the risk, the higher the return charged.

T-bonds have no default risk because they are guaranteed by the US Government which is why it's rate is the lowest. For the other bonds, there is something called a Credit rating. Bonds are usually rated on how risky it will be to lend to the company borrowing with AAA being of the lowest risk. Therefore as one goes up from AAA, the bonds will have higher default risks.

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3 years ago

In a competitive market, no single producer can influence the market price because:

AURORKA [14]

Answer:

many other sellers are offering a product that is essentially identical.

Explanation:

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2 years ago

Dimitri has several apple trees in his yard, and apples are a perfectly competitive market with a price of $2 per pound. if dimi

Alinara [238K]

The total revenue and the marginal revenue when he sells the 100th pound of apples is
total revenue is $200 (100 * 2) and marginal revenue is $2 (the price of the apple per pound in the market)

So the answer is the total revenue of Dimitri is $200 while the marginal revenue is $2.

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4 years ago

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:S

RoseWind [281]

Answer:

c. $17,400

Explanation:

The computation of the net operating income under absorption costing is given below:

unit product cost under Absorption costing

direct materials $29

direct labor $71

variable manufacturing overhead $17

fixed manufacturing overhead ($142,500 ÷ 9,500) $15

unit product cost $132

Now

Sales (9,100 × 156) $1,419,600

less:Variable cost of good sold (9,100 × 132) $1,201,200

Gross profit $218,400

Selling and administrative expense

variable selling expens (9,100 × 21) $191,100

Fixed selling & adm expense $9,900

Net operating income $17,400

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3 years ago

In the circular flow of income, Keynesian equilibrium obtains when a) All the individual sectors are in equilibrium: S=I, T=G, M

olga nikolaevna [1]

Answer:

The answer is B:

The aggregate injections equal aggregate withdrawals S+T+M = I+G+X.

Explanation:

In the circular flow of income, Keynesian equilibrium obtains when The aggregate injections equal aggregate withdrawals S+T+M = I+G+X.

Where S = Saving

T = Taxes

Imports = (M)

I = Investments

G = Government spending

X = Exports

An equilibrium is approached when there is a balance between the savings, taxes and imports and investments, government spendings and exports.

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3 years ago