Answer:
Bid-ask spread.
Explanation:
The difference between the price at which a dealer is willing to buy and the price at which a dealer is willing to sell, is called the bid-ask spread.
Simply stated, the bid-ask spread refers to the amount by which the bid price by a dealer is lower than the ask-price for a security or an asset in the market at a specific period of time.
The bid-ask spread exists because of the need for dealers to cover expenses and make a profit. A bid-ask spread is use in the transaction of the following items; options, future contracts, stocks, and currency pairs.
Generally, a dealer who is willing to sell an asset or securities would receive a bid price while the price at which the dealer is willing to sell his asset to another dealer (buyer) is the ask price.
<em>Hence, the bid-ask spread is simply the difference between the ask price and the bid price. Therefore, a bid-ask spread is a measure of the demand and supply for an asset; where demand represents the bid while supply represents the ask for an asset. </em>
Answer:
The correct answer is (C)
Explanation:
Planning for capital expenditures is an important aspect which helps the organisation to grow in future and to mitigate the risks of financial distress. Amount spent on office equipment is not a part of planning for capital expenditures because in time fixed assets such as office equipment wear out or become superseded. All other reason are a part of planning for capital expenditures.
Answer:
Their total assets next year has to be $124,725
Explanation:
<em>Step 1: Determine the initial assets and liabilities</em>
The total assets can be expressed as;
A=C+E
where;
A=total assets
C=common stock
E=retained earnings
In our case;
A=unknown
C=$12,173
E=$91,949
replacing;
A=12,173+91,949=$104,122
<em>Step 2: Determine total liabilities</em>
Total liabilities=initial liability+dividends
where;
Initial liability=$73,225
dividends=$15,000
replacing;
Total liabilities=73,225+15,000=$88,225
<em>Step 3: Determine new assets</em>
Using the formula;
Net profit=new assets-total liabilities
where;
Net profit=$36,500
new assets=unknown=n
total liabilities=$88,225
replacing;
36,500=n-88,225
n=36,500+88,225=$124,725
n=$124,725
Their total assets next year has to be $124,725
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Answer:
Instrctions are listed below.
Explanation:
Giving the following information:
Beginning inventory 10 units at $55
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70
60 units of the item were sold.
A) FIFO
Inventory= 15*70 + 5*65= $1,375
B) LIFO
Inventory= 10*55 + 10*60= $1,150
C) Weighted average:
Average cost= (55 + 60 + 65 + 70)/4= 62.5
Inventory= 62.5*20= $1,250
Answer:
The correct answer is Sole Proprietorship.
Explanation:
A sole proprietor is the simplest form of commercial structure. Anyone can be a sole proprietor and there is no legal basis for this business form. The term sole proprietor simply refers to someone who is engaged in some type of business and who is responsible for the debts of that business. You can run a sole proprietor under your own name, or under a "do business as" (DBA) name, such as Manny's Sandwiches. The DBA name is just a business name and does not create a legal entity separate from the sole owner.
A sole proprietor remains a very popular commercial form because it is simple, easy to create and has minimal costs. All that is needed is to register your name and your DBA is applicable, and pay local licenses if necessary. Once this is done, you will be ready for business. The disadvantage of a sole proprietor is that the sole proprietor is responsible for all commercial debts, and there is no legal shield against lawsuits. If a sole proprietor loses a lawsuit, he or she is responsible for paying the sentence with their own money, which could put the savings or even your home at risk.
