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3 years ago

. Economic stability is a situation in which the economy experiences constant and low . True or False

2 answers:

6 0

This is true statement. Economic stability is a situation in which the economy experiences constant growth and low inflation.

Sever21 [200]3 years ago

4 0

Answer: True. Economists view the term Economic stability as a state of constant economic growth along with low inflation.

Explanation: When economy of any country is growing positively it ultimately reduces the inflation in a country. Thus we can say that they are inversely proportional to each other, means when you see increasing inflation, it indicates that the economic growth is either negative or stagnated however, when inflation is decreasing it indicates that the economy of a country is growing positively.

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An acquisition premium is the amount by which the price offered for an existing business exceeds the Select one: a. amount paid

MAVERICK [17]

Answer:

d. pre-acquisition market value of the target company.

Explanation:

An acquisition premium is the amount by which the price offered for an existing business exceeds the pre-acquisition market value of the target company.

An acquisition premium gives the difference between the actual amount of money paid in acquiring a target firm and the estimated real value of obtaining the firm before the acquisition.

Acquisition premium are usually recorded on the balance sheet as "goodwill."

8 0

3 years ago

Peter Company acquired 75 percent of Sally Company on January 1, 2019 for $712,500. During 2019, Sally purchased inventory for $

dezoksy [38]

Answer:

Journal entry to eliminate Sale to Peter Company

Debit : Sales Revenue (Sally Company ) $50,000

Credit : Cost of Sales (Peter Company) $50,000

Explanation:

Peter Company and Sally Company are in a group and Peter Company is the Parent whilst Sally Company is the subsidiary.

For 2019 Eliminate an Intragroup Transactions that occur between Peter Company and Sally Company.

8 0

3 years ago

Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures wer

dalvyx [7]

Answer:

9.61%

Explanation:

Computation for the weighted-average interest rate

Using this formula

Weighted-average interest rate=Total Interest amount /Total Principal amount

Particular Principal Interest

9%, 5-year note payable $2,088,000 $187,920

10%, 4-year note payable $3,308,700 $330,870

Total $5,396,700 $518,790

Total Principal amount =$5,396,700

Total Interest amount =$518,790

Let plug in the formula

Weighted-average interest rate=$518,790/$5,396,700

Weighted-average interest rate=0.0961*100

Weighted-average interest rate=9.61%

Therefore Weighted-average interest rate is 9.61%

8 0

3 years ago

Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bond

ivann1987 [24]

Answer:

Explanation:

The journal entry is shown below:

On September 30

Bonds payable A/c Dr $1,000,000

Loss on bond retirement A/c Dr $20,000

To Discount on Bond A/c $10,000

To Cash A/c $1,010,000

(Being the callable bond is recorded)

The computation is shown below:

For cash

= Par value of bond + Premium

= $1,000,000 + $10,000

= $1,010,000

For Loss, it would be

= $1,010,000 - $990,000

= $20,000

And, the remaining amount would be transferred to discount on bond

7 0

3 years ago

What’s the difference payment wise between a debit and credit card?

Jet001 [13]

A credit card is borrowed money and you pay it in return later on. Debit card is money from your bank account

3 0

3 years ago