1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alukav5142 [94]
3 years ago
11

The Carter National Bank is worried because it knows that the municipal bonds it has in its bond portfolio can be difficult to s

ell quickly. What type of risk would this be an example of?
A) Basis risk.
B) Call risk.
C) Default risk.
D) Inflation risk.
Business
1 answer:
ioda3 years ago
4 0

Answer:

liquidity risk

Explanation:

Liquidity risk refers to the risk associated with not being able to fulfill short term debts and obligations. Liquid assets are those assets that can be easily converted to cash, e.g. T-bills, publicly traded stocks.

Illiquid assets are those that cannot be easily converted to cash, e.g. real estate property. It doesn't mean that they are a bad investment, but if the company needs cash fast, they need to look somewhere else.

You might be interested in
A "financial snapshot" is a technique to establish:
In-s [12.5K]
It is to provide your clients a visual demonstration of their current financial situation, the raw numbers on where they are today, and what it would take for them to reach their goals and dreams.
4 0
3 years ago
A firm earns a normal profit when its: Multiple Choice accounting profit is positive. economic profit is positive. economic prof
erastova [34]

Answer:

The correct answer is accounting profit is positive.

Explanation:

Economic profits are the difference between the total revenue earned by selling the goods and total costs incurred in the production process. It includes both implicit as well as explicit costs.

The explicit costs are the direct costs incurred in the production process. There is an actual payment involved.  

The implicit costs are the indirect costs incurred. They are generally the opportunity cost of sacrificing the alternative option. There is no actual payment involved.  

The accounting profits include only explicit costs incurred in the production process. It is the difference between total revenue earned and explicit cost.  

A normal profit means zero economic profits. But accountable profits is higher than economic profits, so there will be some positive accountable profit.

8 0
3 years ago
Lewis and Associates has been in the termite inspection and treatment business for five years. The following is a list of accoun
astraxan [27]

Answer:

Lewis and Associates

1. Identification and Analysis of the items of additional information:

a. Rent Expense $400 Prepaid Rent $400

b. Depreciation Expense $150 Accumulated Depreciation $150

c.Cost of Chemical Used $8,100  Chemical Inventory $8,100

d. Wages and Salary Expense $1,080 Wages and Salary Payable $1,080.

e. Income Tax Expense $1,905 Income Tax Payable $1,905

2. On the basis of the information, Lewis and Associates appears to be a profitable business, making a margin of 11% in after-tax income.

Explanation:

a) Additional Data and Analysis:

a. Rent Expense $400 Prepaid Rent $400

b. Depreciation Expense $150 Accumulated Depreciation $150

c.Cost of Chemical Used $8,100  Chemical Inventory $8,100

d. Wages and Salary Expense $1,080 Wages and Salary Payable $1,080.

e. Income Tax Expense $1,905 Income Tax Payable $1,905

30% of the income for the month.

Income Statement for the Month Ended June 30

Treatment Revenue               $40,600

Cost of Treatment Chemical      8,100

Gross profit                            $32,500

Expenses:

Wages and Salary      $23,500

Utilities                             1,240

Advertising                        860

Depreciation                      150

Rent                                  400

Total expenses                        $26,150

Income before taxes                $6,350

Income taxes                               1,905

Net income                               $4,445

7 0
3 years ago
In his company's most recent downsizing, Emil was one of only five workers in his department who was not let go. Emil's employer
torisob [31]

Answer:

The correct option is: c. Mistrust

Explanation:

Mistrust or distrust is described as the <u>lack of confidence</u> in other individual or organization, experienced by an individual in case of <u>uncertainty and potential risks.</u>

In the given example, due to the reduced workforce or the downsizing of Emil's company, Emil is experiencing a lack of confidence and trust in his company.

<u>Therefore, Emil is most likely experiencing feelings of </u><u>mistrust or distrust </u><u>in the company's management.</u>

7 0
3 years ago
Madzinga's Draperies manufactures curtains. A certain window requires the following:
Degger [83]

Answer:

Results are below.

Explanation:

<u>To calculate the direct material price and quantity variance, we need to use the following formulas:</u>

<u></u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (5 - 4.9)*14,000

Direct material price variance= $1,400 favorable

Actual price= 68,600/14,000= $4.9

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (1,500*10 - 14,000)*5

Direct material quantity variance= $5,000 favorable

<u>To calculate the direct labor efficiency and rate variance, we need to use the following formulas:</u>

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (5*1,500 - 7,600)*10

Direct labor time (efficiency) variance= $1,000 unfavorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (10 - 10.5)*7,600

Direct labor rate variance= $3,800 unfavorable

Actual rate= 79,800 / 7,600= $10.5

6 0
2 years ago
Other questions:
  • What is considered the passive factor in production?
    6·1 answer
  • When teaching new vocabulary, how many times should you encourage the student to repeat the word back to you?
    8·1 answer
  • A company is trying to decide which product to manufacture. The following information is available: Costs Product A Product B Di
    11·1 answer
  • Question Workspace Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per week (millions of gallons) Price per gallon 6
    5·1 answer
  • What is the future value of ​$490 per year for 9 years compounded annually at 11 ​percent? The future value of ​$490 per year fo
    11·1 answer
  • You are a professional financial analyst that is employed to help evaluate possible merger and acquisition candidates. You have
    14·1 answer
  • JankMag is a fashion magazine that recently hired creative writers and journalists for its new humor section. The team members k
    6·1 answer
  • Golden Harvest is a restaurant located inside a five-star hotel. It caters mainly to customers who are concerned about quality d
    12·1 answer
  • Why do you think newspapers did not increase prices, given their financial situation?
    14·2 answers
  • a project has a team member who routinely is not showing up to meetings or completing assignments. the appropriate place to capt
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!