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4 years ago

How is the national debt affected by the national budget?

Business

2 answers:

True [87]4 years ago

4 0

The National debt is affected by the National budget because the debt decreases as the government prints money.

kifflom [539]4 years ago

3 0

Answer:

The debt increases every year that there is a budget deficit

Explanation:

When the national spending is greater than national revenue there is budget deficit. The national debt is accrual of that budget deficit. Hence when there is budget deficit there is increase in national debt.

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arrange the investments in order from the highest risk and return potential to the lowest risk and return potential

dimulka [17.4K]

Answer:

Arrange the investments in order from the highest risk and return potential to the lowest risk and return potential:

A. property

B. bonds

C. starting a business

D. mutual funds

Solution:

C. starting a business

A. property

D. mutual funds

B. bonds

Explanation:

Investments are the exchanges of income during one period for assets that are expected to earn income in future periods. It is the act of committing capital now in order to obtain future earnings. The risk and return calibration depends on one's personal circumstances and risk appetite.

Some investments offer higher returns with great growth potentials and higher risks while others offer lower returns with lower risks.

Starting a business has the highest risk and return potential. The risk is that you may not realise any return. However, if you are successful in the business, you can get the highest return ever.

Property investments either by building new property, buying built property, or investing in property investment fund may also yield so much returns but the risks are higher than other investments in this class. There is no guarantee that prices of property will not fall so dramatically that you sustain big losses. There is always need to insure your property against disasters like fire.

Mutual funds are professionally managed funds whereby money is pooled from different investors in order to buy stocks, bonds, etc. with long-term horizon. It has higher risk profile than investing in bonds as an individual, because you could recoup some returns in bonds as interests are paid periodically.

Bonds are debt securities to a government or business with the promise of repayment and period interests. They are generally risk-free investments with lower returns because of the guaranteed repayment.

5 0

3 years ago

2. X Company has the following accounting balances at the end of the year before adjustments: Accounts receivable $ 50,000 Allow

elixir [45]

Answer:Bad debt expenses will be $2000 on the income statement and Allowance for uncollectible Accounts will be ($3000) on the balance sheet.

Explanation:

The bad debt accounts and allowance for uncollectible accounts are stated in the income and balance sheet statement respectively yearly to monitor activities on collectible debts.

A firm based on his experience determined an estimated percentage of debts outstanding for the year that are likely to go bad. If the new estimate is greater than the previous year, the difference is debited to income statement and if the new estimate is less than the previous year estimate the difference is credited to the income statement.

In the above scenario the new year estimate is greater than previous year by $ 2000 and that lead to $2000 to be debited to income statement.

The balance is made to reflect the total of the new estimate to be deducted from collectible debt and this is why ($3000) goes to the balance sheet.

5 0

4 years ago

Read 2 more answers

Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What

True [87]

Answer:

When interest rate rises, the quantity of money demanded reduces

Explanation:

As interest rate increases firms seeking to borrow money for capital stock expansion are likely not going to go ahead with it. The reason is simply because, interest rate and money demanded have an inverse relationship. As interest rate rises money demanded falls because it means that for any amount of money borrowed the interest rate attached to it is higher making the cost of borrowing heavier on the borrower.

8 0

3 years ago

A company purchased a computer system at a cost of $34,000. The estimated useful life is 7 years, and the estimated residual val

Ipatiy [6.2K]

Answer:

$7,000

Explanation:

Calculation for the depreciation expense for the second year

Depreciation rate will be:

2/7 = 29%

$34,000 × 29% = $9,860

The depreciation in the first year will be $9,860

Thus,

($34,000 - $9,860) × 29%

$24,140×29%

= $7,000

Therefore the depreciation expense for the second year will be $7,000

3 0

3 years ago

All of the following are true of the real interest rate except it Is equal to the nominal interest rate minus the anticipated ra

Lynna [10]

Answer:

Equals the foreign exchange rate minus the inflation rate.

Explanation:

Nominal rate of interest refers to the interest rate which does not account for rate of inflation.

It is expressed as

Nominal interest rate = Real interest rate + rate of inflation

Real interest rate is considered to be a better measure since it is adjusted for rate of inflation.

Foreign exchange rate refers to exchange rate between two currencies which is based upon inflation and interest rates prevailing in the respective countries.

5 0

3 years ago