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3 years ago

What is considered a liability in finance and why is it being used?

2 answers:

8 0

A liability is something a person or company owes, usually a sum of money. ... In the world of accounting, a financial liability is also an obligation but is more defined by previous business transactions, events, sales, exchange of assets or services, or anything that would provide economic benefit at a later date

iVinArrow [24]3 years ago

4 0

Answer:

A liability is something a person or company owes, usually a sum of money. In the world of accounting, a financial liability is also an obligation but is more defined by previous business transactions, events, sales, exchange of assets or services, or anything that would provide economic benefit at a later date.

Explanation:

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If long run aggregate supply (LRAS) is vertical, then which of the following statements must be true

Shtirlitz [24]

If long run aggregate supply (LRAS) is vertical, the statements that must be true is: Aggregate demand does not affect the quantity of output.

<h3>What is aggregate supply?</h3>

Aggregate supply can be defined as the amount of goods or product a firm is expected to produce and sell or made available to buyers at a particular period of time.

Hence, assuming aggregate supply is vertical, aggregate demand which is the amount of goods buyers are willing to buy will not not affect the quantity of output or goods produced.

Learn more about Aggregate supply here:brainly.com/question/25749867

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2 years ago

Johnson Co. has 1,000,000 euros as payables due in 30 days, and is certain that the euro is going to appreciate substantially ov

SCORPION-xisa [38]

Based on the fact that the Euro will appreciate, the best thing for Johnson Co. to do is to e.purchase euros forward.

<h3>What should Johnson Co. do?</h3>

The fact that the Euro is going to appreciate in value means that Johnson Co. will have to pay more in future.

They should therefore lock in a favorable Euro rate now by purchasing Euros at a forward rate.

Find out more on purchasing forward at brainly.com/question/14090802.

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5 0

3 years ago

The manager provided the following information. Direct manufacturing labor hours: 2,400 hours Actual units produced: 12,000 unit

Naya [18.7K]

Answer:

Labor efficiency variance = $5,760 (Favorable)

Explanation:

We know,

Labor efficiency variance = (Standard hour - Accrual hour) × Standard rate

Given,

Accrual hour = 2,400

Standard hour = Budgeted direct manufacturing labor hours × Actual units produced

or, Standard hour = 0.22 × 12,000

Standard hour = 2,640 hours.

Standard rate = $24.

Putting the values into the formula, we can get

Labor efficiency variance = (2,640 - 2,400) hours × $24

Labor efficiency variance = 240 × $24

Labor efficiency variance = $5,760 (Favorable)

As standard hours is higher then actual hours, it is a favorable situation.

7 0

3 years ago

Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote

4vir4ik [10]

Answer: Option (d)

Explanation:

Under this case the write off will be as follow:

Debit Credit

Allowance for doubtful accounts 25,200

Accounts receivables 25,200

Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.

4 0

4 years ago

Given a stock with a beta of 1.2, risk free rate of 4%, and a market return of 10%, calculate the required return.

MissTica

Answer: 11.2%

Explanation:

The required return of this stock can be calculated using the Capital Asset Pricing Model (CAPM) which is expressed as follows;

Required return = Risk free rate + beta ( Market return - risk free rate)

= 4% + 1.2 ( 10% - 4%)

= 11.2%

3 0

3 years ago