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3 years ago

Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?

1 answer:

6 0

Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
<span>
It has low liquidity because selling would often require selling at a loss.

High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.</span>

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Which of the following describes the management function that includes determining which tasks will be done, who will do them, h

ololo11 [35]

Answer:

Planning management function

Explanation:

Planning is a management procedure which aims to identify objectives for the long term future of an organization and to determine the tasks and resources required in achieving these objectives. Managers should create a business plan or a marketing plan for achieving objectives.

4 0

3 years ago

Velco purchased a delivery truck at the beginning of Year 1 at a cost of $60,000. The truck is estimated to have a useful life t

Alenkinab [10]

Answer:

$10,000

Explanation:

Depreciation of an asset is the systematic allocation of estimated cost to an asset over time. It is added over the years to get the accumulated depreciation that is netted off the cost to get the net book value.

It is given as

Depreciation = (Cost - Salvage value)/Estimated useful life

Depreciation expense for Year 1 (the first year of the asset's life) under the straight-line method would be

= ( $60,000 - $10,000 ) / 5

= $50,000/5

= $10,000

5 0

2 years ago

Suppose the required reserve ratio is 20 percent, and the Fed buys $1 million worth of bonds from the public. If the public depo

777dan777 [17]

Answer:

Increase directly by $1 million and an additional lending capacity of $4 million will be created for the banking system.

Explanation:

The formula for increase in money supply is

Increase in money supply = (1 / Required reserve ratio) * Excess reserve.

Now, we have, required reserve ratio of 20%.

That means, out of $1 million deposit, required reserve = ($1,000,000 * 0.20) = $200,000.

Now, we knew that, Total reserve = required reserve + excess reserve

Total Reserve = $1,000,000 and required reserve = $200,000.

So, Excess reserve = $1,000,000 - $200,000 = $800,000.

Now, Increase in money supply = (1 / 0.20) * $800,000 = $4 million.

That means,

If the public deposits this amount into transactions accounts, the money supply will:

Increase directly by $1 million and an additional lending capacity of $4 million will be created for the banking system.

7 0

3 years ago

Amortization is:Select one:A. The process of allocating to expense the cost of a plant asset to the accounting periods benefitin

Anvisha [2.4K]

Answer:

The correct answer is option B.

Explanation:

Amortization is a technique used in accounting. It involves the process of spreading payment over multiple periods. In accounting, amortization refers to the allocation of the cost of intangible assets over its lifetime.

For instance, amortization of a loan means spreading the interest and principal of the loan over its lifetime. It means fixed monthly payments of interest and principal.

4 0

3 years ago

reonna Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, cont

ioda

Answer:

$35,000

Explanation:

Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).

Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000

4 0

3 years ago