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3 years ago

Explain the difference between common and preferred stock? List the advantages and disadvantages of each.

1 answer:

7 0

Common stockholders will not receive any money before the preferred stock holders in the case of the company having to liquidate. So thats a disadvantage. Preferred stockholders tend to get higher dividends paid out to them, which is an advantage.

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Pizza Express Inc. began the Year 2 accounting period with $2,500 cash, $1,400 of common stock, and $1,100 of retained earnings.

Anastaziya [24]

Answer:

a) I used an excel spreadsheet since there is not enough room here.

b) Net income = $8,950

Cash flows form operating activities =

Net income $8,950

Adjustments to net income:

Increase in account payable <u> $250</u>

Net cash from operating activities $9,850

Net income is lower because a company must record revenues and expenses when they happen, not when they are associated with cash flows. This is why a company that makes all credit sales might have a large profit, but a small amount of cash (the opposite of this situation).

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3 years ago

A general decrease in wages will result primarily in the _____ curve shifting to the _____. aggregate demand; left short-run agg

Archy [21]

A general decrease in wages will result primarily in the aggregrate demand curve shifting to the shifting to the right.

<h3>What is the impact in the decrease in wages? </h3>

When there is a decrease in wages, it becomes cheaper to hire labor. As a result, there would be an increase in the demand for labor. This would shift the demand curve for labor to the right.

The decrease in wages, would shift the long run aggregrate supply curve to the left.

To learn more about the demand curve, please check: brainly.com/question/25140811

5 0

2 years ago

Which of the following is a characteristic of a certificate of deposit?

valentinak56 [21]

Answer:

C). It requires that the funds be kept in the account for a minimum fixed period of time e.g. 90 days

<u>Multiple- choices</u>

A). You have to earn at least $100,000 in salary to be allowed to buy a CD

B). It is just a different name for a savings account

C). It requires that the funds be kept in the account for a minimum fixed period of time e.g. 90 days

D). Only large banks offer them

Explanation:

Banks and other financial institution offer certificates of deposit (CD) saving account to customers who intend to limit the number of withdraws. This type of savings account pays a higher interest rate than the regular savings account. A customer wishing to open this account agrees with the bank on the duration that they want to save the money. Withdrawals can only be made after the agreed period lapses. Should the customer demand for their money before the end of the agreed period, they may get penalized by the banks.

8 0

2 years ago

On June 1, year 2, Oak Corp. granted stock options to certain key employees as additional compensation. The options were for 1,0

Dimas [21]

Answer:

Since the options were granted at an exercise price of $15 when the market value of the shares was $20, total compensation under the intrinsic method would be $5 per share on 1,000 shares or $5,000. Since the options are exercisable on 1/2/X2, the $5,000 in compensation would all be recognized n 20X1.

Explanation:

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3 years ago

Based on your understanding of the relationship between relative inflation rates and exchange rates, identify whether the preced

lys-0071 [83]

Answer:

b.the statement is invalid because the nominal

Explanation:

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6 0

2 years ago