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Gekata [30.6K]
3 years ago
9

David bought stock for $4,000 and one year later he sold it for $1,000. The sale resulted in a:

Business
2 answers:
AURORKA [14]3 years ago
7 0

Answer:

Capital Loss

Explanation:

A capital loss occurs when an investment asset decrease in value between the time of purchase and the time for selling. The loss is realized only when the asset is sold.  Examples of investment assets that can lose value include stocks, mutual funds, index funds, real estate, and bonds.

A capital gain or loss is the purchase price minus selling price of an investment asset. Capital gain is when the result is positive, implying that the asset has appreciated in value.  A capital gain always attracts tax.  David experienced a capital loss of  $3000 as the selling price was lower than the buying price ($ 4000-$1000).

nalin [4]3 years ago
3 0

Answer:

The sale results in a capital loss of $3,000.

Explanation:

The stock was bought for $4,000 and was later sold for $1,000 one year later. It means that David lost $3,000 on the stock.

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The __________ is the difference between money flowing into a country from exports, and money leaving the country for imports, p
Anna35 [415]

Answer:

D. balance of trade

Explanation:

Based on the information provided within the question it can be said that the term being described in this scenario is called a balance of trade. like mentioned in the question this term refers to the difference between a nation's exports and it's imports, as well as various other forms of money flow into and outside the nation in question.

6 0
3 years ago
Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to
Rama09 [41]

Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to Contingency.

<h3><u>What is Contingency?</u></h3>
  • A contingency is the potential possibility of a bad event, such as a pandemic, economic downturn, natural disaster, fraud, or terrorist attack. The coronavirus outbreak that struck businesses in 2020 made many employees reliant on remote work.
  • Companies had to adopt a remote work strategy as a result. Working remotely wasn't an option for some organizations, though, and as a result, increased security measures for both employees and clients were put in place to stop the virus from spreading.

Although contingencies can be planned for, it is often impossible to predict the kind and breadth of such unfavorable events in advance. Businesses and investors conduct analyses and put defensive measures into place to prepare for potential possibilities.

Know more about Contingency with the help of the given link:

brainly.com/question/17275335

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4 0
2 years ago
In year 2, Sammi Corp. changes its inventory method from FIFO to the weighted-average method. Under the weighted-average method,
Dima020 [189]

Answer:

Two adjustments must be made to year 1's financial statements:

  1. The income statement must be adjusted since net income increased because cost of goods sold decreased.
  2. The balance sheet must be adjusted since retained earnings will increase because net income increased.

Explanation:

The retrospective approach hides any changes with the accounting methods, and shows the financial statements as if the new accounting method was used all along and there was no error or change.

6 0
3 years ago
One Chicago has just introduced a new single stock futures contract on the stock of Brandex, a company that currently pays no di
bekas [8.4K]

Answer:

A: $127.2

B: $123.384, $3.816 per share and $3,816 per contract

C: 9.43%

Explanation:

A: Futures price

F° = S° (1 + rₙ) = $120 x 1.06

= $127.20

B: Change in Future Price and Investor Margin account:

New Spot = $120 (1 – 0.03)

= $120 x 0.97

= $116.40

New Futures = $116.40 (1.06)

= $123.384

The long investor loses = $127.20 - $123.384

= $3.816 per share

or $3.816 (1,000) = $3,816 per contract

C: Percentage return on the investor’s position:

Percentage return = $12,000 / $127,200

= 9.43%

5 0
3 years ago
True or false: you should measure the inputs to a restaurant process in customers and the outputs in dollars.
kondor19780726 [428]

You  should measure the inputs to a restaurant process in customers and the outputs in dollars is a false statement.

<h3>What is the flow of a restaurant?</h3>

This is known to be called the patron's flow and it is one that tends to originate from the entrance to the table of the host, and also   to the restrooms as well as the back out.

Note that Flow is seen as a form of volumetric flow rate and it is one that is  simply known to be the volume of fluid that moves per unit of time.

Therefore, saying that you should measure the inputs to a restaurant process in customers and the outputs in dollars is a false statement.

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3 0
1 year ago
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