How does excessive money in the economy lead to inflation?

The process of converting an exchange from a mutual ownership structure to a stock owned is known as what?

ch4aika [34]

The correct answer is demutualization. This is the process used in means of having to form a joint stock company in which they are likely from a mutual organization that is customer owned or has likely a cooperative changes in a legal form.

5 0

3 years ago

If a given investor believes that a stock’s expected return exceeds its required return, then the investor most likely believes

Alekssandra [29.7K]

Answer:

d

Explanation:

The answer is d because if the investor is expecting the returns to be higher than his required return this means that the stock is under-valued i.e. it is available at a price lower than its actual worth considering the pay-off expected in the future. Therefore the stock is worth buying now.

4 0

3 years ago

Independent auditing can best be described as:________. A. A regulatory function that prevents the issuance of improper financia

Elden [556K]

Answer:

C. A discipline that enhances the degree of confidence that users can place in financial statements.

Explanation:

Independent auditing includes the process of auditing by an independent auditor. It involves the process of analyzing and examining the financial transactions and records. The company's accounts, the business records, the transactions are all monitored and audited so as to avoid any unprecedented act. It do not indulge any means of profit in the whole process. Independent auditing is adopted by the shareholders in order to protect from any sort of frauds or unacceptable claims made in terms of financial records.

8 0

3 years ago

Lloyd Inc. had sales of $200,000, a net income of //415,000, and the following balance sheet: Cash $10,000 Accounts Payable $30,

Anastasy [175]

Answer:

The firm's new quick ratio is 2.9

Explanation:

The current ratio is calculated as

Current ratio = Current assets / Current liabilities

2.5 times = (Cash + receivables + Inventories ) / (Accounts payable + Other current liabilities)

2.5 = ($10,000 + $50,000 + Inventories) / $50,000

$60,000 + inventories = $125,000

Inventories = $65,000

Therefore, $85,000 worth of inventories were sold off.

If the funds generated are used to reduce the common equity that is by repurchasing the equity at book value.

Hence, the common equity amounts to $115,000

Calculating the ROE before the inventory is sold off:

ROE = Net income / Stockholder's equity

= $15,000 / $200,000

= 0.075 or 7.5%

Calculating the ROE after selling off the inventory

ROE = $15,000 / $115,000

= 0.13 or 13%

The firm's new quick ratio is

Quick ratio = (Current assets - Inventories) / Current liabilities

= ($210,000 - $65,000) / $50,000

= 2.9

3 0

3 years ago

The accounting records of EZ Company provided the data below.

Brrunno [24]

Answer:

Net cash flow from operating activities = $62,200

Explanation:

EZ Company

Statement of Cash Flow

Particulars Amount ($)

Net Income 50,000

Net cash flow from operating activities:

Depreciation expense 7,000

Amortization of patent 500

Amortization of premium on bonds 1,000

Decrease in accounts receivable 2,000

Increase in inventory (1,500)

Decrease in salaries payable (800)

Increase in accounts payable 4,000

Net cash used or provided 12,200

Net cash flow from operating activities =$62,200

Cash dividend is a financing activities, that is why it is not added or deducted in the operating activities.

7 0

4 years ago