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ololo11 [35]
3 years ago
8

Identify the statement that is incorrect. a. Higher financial leverage involves higher risk. b. Risk is higher if a company has

more liabilities. c. Risk is higher if a company has more assets. d. The debt ratio is one measure of financial risk. e. Lower financial leverage involves lower risk.
Business
1 answer:
Savatey [412]3 years ago
6 0

Answer:

c. Risk is higher if a company has more assets.

Explanation:

Financial leverage is the measurement of risk based on the debt of the company. More liabilities involves high risk  because company does not have enough to pay for the it's liabilities.  If company has more assets then the risk if lower because company is able to pay its liabilities from its assets. The statement " Risk is higher if a company has more assets" is incorrect.

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Dilution solutions, inc. repurchased 500 shares of its $2 par value common stock for $10,000. the effect of this transaction on
mr Goodwill [35]

$10,000 increase in Treasury Stock is the effect of this transaction.

<h3>What is cost method?</h3>

The cost method exists as a method of accounting. It is utilized for recording precise investments in a company's financial statements. This particular method lives used when an investor has little or no effect over the investment that they own.

The cost method of accounting is used for recording particular investments in a company's financial statements. This method is used when the investor exercises little or no influence over the acquisition that it owns, which exists typically represented as owning less than 20% of the company.

Treasury stock stands also known referred to as treasury shares and it happens when stock stands bought by the issuing company back from the stockholders.

This results in a reduction in the whole number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will get about a $10,000 gain in the treasury stock.

To learn more about cost method refer to:

brainly.com/question/28149037

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3 0
2 years ago
"A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by
AlexFokin [52]

Answer:

U.S. GDP = $440

Explanation:

If Texas household receives a Social Security check for $, and after calculating the purchases the US GDP is as follows:

Shoes from the Thai and korean firm is part of imports

Imports = $40 + $1240 = $1280

Domestic consumption = $220

Security check is part of government spending = $1500

GDP =$1500 + $220 - $1280 = $440

8 0
3 years ago
While on a trip to South Africa, Elena was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbr
Anit [1.1K]

Answer:

D. Since most import businesses are also export businesses, find a U.S. product South Africans would be willing to buy.

Explanation:

Also she should hear from others who import and export goods from Africa and US and vice-versa.

8 0
3 years ago
Read 2 more answers
Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as
Scorpion4ik [409]

Answer:

Ist B

Explanation:

Ist b

8 0
2 years ago
Yakov, Ana, and Dina want to bake a cake. They are choosing among chocolate cake (C), vanilla cake (V), and red velvet cake (R).
vovangra [49]

Answer:

The specified preferences of Charles, Diana and Juanita. Charles and Juniata prefer chocolate over red velvet cake. Dina favors red velvet over chocolate.

So, when there is voting among red velvet and chocolate cake, the majority will select the Chocolate cake and among winner and vanilla majority will vote for Vanilla cake.

This is because Dina and Juanita favor vanilla over chocolate.

Among Chocolate and vanilla cake, the majority will elect for vanilla and among this winner and red velvet cake, the majority will choose for Red velvet cake.

This is because Diana and juanita favor vanilla over chocolate. So, vanilla cakes get majority elects. When there is voting among vanilla and red velvet , red vanilla acquire majority votes as charles and dina favor red velvet over vanilla.

The statement is False. The preferences are not transitive.

In the first situation chocolate is chosen to vanilla and red velvet is preferred to vanilla. Although, in the second situation, chocolate is favored to red velvet and vanilla is preferred to chocolate. Thus, the preferences do not exhibit transitivity.

8 0
3 years ago
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