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3 years ago

The primary difference between commodity money and fiat money is that

Business

1 answer:

STatiana [176]3 years ago

4 0

Answer:

Commodity money has intrinsic value whereas the fiat money does not have intrinsic value

Explanation:

Commodity market is the market which have the virtual or physical market place for trading, buying and selling of primary or raw materials. Presently, about 50 major commodity markets worldwide. And this market has intrinsic value, which means that the commodity has value though not used as money.

Fiat money is the currency created as money, usually through government regulation, and has no intrinsic value.

Therefore, the primary value is that the commodity market has intrinsic values whereas the fiat currency does not have.

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Amex Corporation invests excess cash to purchase $25,000 in corporate bonds on March 30, 2018. In addition to the $25,000, Amex

damaskus [11]

Answer:

b. a debit to Held-to-Maturity Debt Investments for $26,000

Explanation:

Investment in corporate bonds is considered as Held-to-Maturity Debt investments.

Date Accounts Title and Explanation Debit Credit

30 Mar 18 Held-to-Maturity Debt investments $26,000

[$25,000 + $1,000)

Cash $26,000

(To record an investment in bonds)

Therefore, in the journal entry, it is debited to Held-to-Maturity Debt investments for $26,000

7 0

3 years ago

Bramble Corp. makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget

Alexandra [31]

Answer:

$720,000

Explanation:

The total budgeted selling and administrative expenses is made up of both fixed and variable components. The variable component of the cost is dependent on the budgeted number of units to be sold.

Total variable cost budgeted

= 58000 ( $1 + $3 + $4 +$2)

= $580,000

Total fixed cost = $10,000 + $120,000 + $4,000 + $6,000

= $140,000

total budgeted selling and administrative expenses for October

= $580,000 + $140,000

= $720,000

5 0

3 years ago

Determine the amount of consumer surplus generated in the following situation. After soccer practice, Stacey is willing to pay $

Oliga [24]

Answer:

The answer is: There was no consumer surplus in this situation.

Explanation:

consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price of the good or service.

In this case there was no consumer surplus, since Stacey was willing to pay only $2 for a bottle of mineral water and its price was $2.25, so she didn't buy it.

6 0

3 years ago

Total transaction costs, based on the assumptions provided, are expected to be:

Jobisdone [24]

Based on the costs of acquisition of Walmart by Amazon, the total transaction costs would come to B. $22,002.

<h3 /><h3>What are the total transaction costs?</h3>

Equity financing cost:

= 5.5% x 241,350.75

= $13,274.29

Debt financing cost:

= 1.5% x 241,350.75

= $3,260.26

Other transaction costs:

= $3,000

Target debt redemption premium:

= 70,242 x 3%

= $2,107.26

The total transaction costs are:

= 13,274.29 + 3,260.26 + 3,000 + 2,107.26

= $22,002

Find out more on acquisition costs at brainly.com/question/14300655

#SPJ1

8 0

2 years ago

Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $50. The company expects total

cestrela7 [59]

Answer:

The correct option is (A)

Explanation:

Given:

Projected sales for next month = $2,800 units

Selling price = $80

Total sales in dollars = 2800×80 = $224,000

Total variable costs = 2800×50 = $140,000

Fixed cost = $82,000

Operating income = Total sales - total variable cost - fixed cost

= 224,000 - 140,000 - 82,000

= $2,000

If selling price is reduced by 14% that is $68.8 which is (80×0.86) in anticipation of increase in sales by 14% that is 3192 units that is (2800×1.14) , then change in operating income is calculated below:

Total sales in dollars = 3192×68.8 = $219,610 (rounded)

Total variable costs = 3192×50 = $159,600

Fixed cost = $82,000

Operating income = Total sales - total variable cost - fixed cost

= 219,610 - 159,600 - 82,000

= -$21990.4

It can be observed that operating income reduced by $23,990 that is (2000 - (-21,990)) if selling price is decreased by 14%.

6 0

3 years ago