All categories

4 years ago

Which function of money describes its ability to enable trade between

Business

1 answer:

aliina [53]4 years ago

3 0

Answer:

D. Medium of exchange

Explanation:

A medium of exchange is any physical object used as a measure of value to facilitate the transfer of goods and services between sellers and buyers. A medium of exchange acts as a go-between in transactions. In modern trade, money is the most widely accepted medium of exchange.

Today, goods and services are given a monetary value. Trade becomes relatively easy as buyers and sellers know how much money is needed to complete a transaction.

You might be interested in

On June 17, the Lattern Company issued 120,000 shares of its $0.10 par value common stock in exchange for land. On the date of t

Aloiza [94]

Answer:

The answer is A. Debit: Land, $1,200,000

Explanation:

The journal entry Lattern Company needs to record is:

Dr Land 1,200,000

Cr Common share 12,000

Cr Paid-in capital - Common share 1,188,000

As 120,000 shares is exchanged for the land and the share is traded in the exchange, the value of the land should be recorded at the market price of these 120,000 shares or 120,000 x 10 = $1,200,000.

Common share account is recorded at par value x number of shares issued = 0.1 x 120,000 = $12,000 while Paid-in capital-Common share account records the difference between market price and par value at the time of shares issuance or ( 10 - 0.1) x 120,000 = $1,188,000.

Thus, the correct answer is A. Debit: Land, $1,200,000

5 0

4 years ago

g after examining the various personal loan rates available to you, you find that you can borrow funds from a finance company a

IceJOKER [234]

question text WITH missing information:

After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of 12 percent compounded monthly or from a bank at an APR of 13 percent compounded annually. Which alternative is more attractive?

If you borrow $100 from a finance company at an APR of 9% percent compounded for year, how much do you need to payoff the loan?

Answer:

The finance company option is better as we are taking the loan we want the lower rate possible.

We need $109 to payoff the loan of $100 at 9% annualy after a whole year.

Explanation:

We solve for the effective rate of 12% compounded monthly

$(1+\frac{0.12}{12} )^{12}$ = 1.12682503 = 0.126825 = 12.6825%

As this rate is lower than 13% this option is better

If we take 100 dollars after a year we have to pay:

$100 x (1 + r) = 100 x (1 + 0.09) = 100 x 1.09 = $109

5 0

3 years ago

Woidtke Manufacturing's stock currently sells for $25 a share. The stock just paid a dividend of $1.60 a share (i.e., D0 = $1.60

madam [21]

Answer:

$26.25

11.72%

Explanation:

Stock price next year = current price x ( 1 + growth rate)

$25 x (1.05) = $26.25

According to the constant growth dividend growth model :

P = D1 / ( r - g)

P = price of the stock

D1 = next dividend = current dividend x (1 +growth rate)

r = required rate of return

g = growth rate

$25 = $1.60 x ( 1.05) / r - 0.05

$25 = 1.68 / r - 0.05

$25 x ( r - 0.05) = 1.68

r = 0.1172

r = 11.72%

8 0

3 years ago

Melissa wants to buy a living room set that cost $1800. She could get a 3-year personal loan from a bank at a simple interest ra

skad [1K]

Answer:

The total cost of the loan with simple interest $2269.8 is less than the loan with compound interest $2299.12.

Explanation:

Simple Interest (I) = Principal (Loan)×Time×Rate ÷ 100

Loan = $1800

Time = 3 years

Rate = 8.7%

I = 1800×3×8.7/100 = $469.8

Total cost of loan with simple Interest = loan + simple interest = $1800 + $469.8 = $2269.8

Compound interest = [Loan(1+r)^n] - Loan

Loan = $1800

r is annual interest rate = 8.5% = 0.085

n is duration of the loan = 3 years

Compound interest = [1800(1+0.085)^3] - 1800 = 2299.12 - 1800 = $499.12

Loan with compound interest = 1800 + 499.12 = $2299.12

7 0

3 years ago

Where does the money you pay for the FICA tax on your paycheck go?

strojnjashka [21]

Answer:

see below

Explanation:

Social security and medicare taxes form the Federal Insurance Contributions Act (FICA) tax. These taxes are deducted from both the employer and employee per paycheck.

Social security tax forms the bulk of the FICA tax. The tax revenue collected as social security tax funds the United States government Social Security Trusts. The trusts are programs managed by the Social Security administration and include

Retirement benefits
Survivor benefits
Disability benefits

Medicare tax revenue funds Federal government medicare programs. This program caters to older American health care costs. The government's general revenue also finances health care. Medicare or health services in the USA are not solely dependent on medicare tax.

4 0

3 years ago