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Daniel [21]
3 years ago
10

Which of the following statements about the expected postretirement benefit obligation (EPBO) is not correct? a. The EPBO is rec

orded in the accounts. b. The EPBO is used in measuring periodic expense. c. The EPBO is an actuarial present value. d. The EPBO is an actuarial present value and is used in measuring periodic expense.
Business
1 answer:
mixer [17]3 years ago
6 0

Answer:

The correct answer is letter "A": The EPBO is recorded in the accounts.

Explanation:

The Expected Postretirement Obligation (EPBO) is an estimation of the value of the benefits employees will receive upon retirement including all the time workers remained in the firm. This is merely a calculation and is not subject to any type of transaction to be recorded in the company's books. The EPBO is not related to workers' pensions.

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What change in investment strategies has contributed to our economic system evolving into institutional capitalism, according to
Oxana [17]

Answer:

From the end of the Middle Ages to the first centuries of the Modern Era, some new investment strategies were developed, which contributed greatly to the development of capitalism.

Explanation:

In particular, group investment in companies that did not have a single, personal owner. This is what we know today as corporations.

The main advantage of a corporation is that many investors pour their money, something that raises the amount of capital, while at the same time not holding full personal responsability over their investments in case the corporation fails. In other words, investors do not have to pay with their personal wealth in case of corporate failure.

Two important early corporations are the Dutch East India Company, and the British East Indian Company. They were very important for the development of capitalism.

5 0
3 years ago
A government began 2013 with a budget deficit and a trade deficit. During the year, the government changed its policy and is now
ddd [48]

Answer:

the exchange rate and the trade deficit to decrease.

Explanation:

A deficit can be defined as an amount by which money, falls short of its expected or required value.

Generally, deficit in financial accounting is usually as a result of expense exceeding revenue or revenue falling below expenses at a specific period of time.

For instance, when liabilities exceeds assets or import exceeds export there would be a deficit in the financial account.

Generally, a deficit on the current account ultimately implies that the value of goods and services exported is lower than the value of goods and services being imported in a particular country.

In 2013, government began with a budget deficit and a trade deficit. During the year, the government changed its policy and is now running a budget surplus.

Hence, this change in policy will cause the exchange rate and the trade deficit to decrease if all other factors hold constant

7 0
3 years ago
You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You
lukranit [14]

Answer:

d

Explanation:

by looking at the prices ,answer d is my estimated answer,im not a finance intern

4 0
3 years ago
Penn Station is saving money to build a new loading platform. Two years ago, they set aside $24,000 for this purpose. Today, tha
vekshin1

Answer:

0,087792106  = rate

Explanation:

We need to calculate the interest of the investment

principal x (1 + rate)^time = value

replacing with the know values

24,000 x  (1+rate)^2   =  28,399

28,399/24,000      = (1 + rate)^2

sqrt (28,399/24,000)  -1 = rate

now we solve for the unknown value

                0,087792106  = rate

4 0
3 years ago
According to the theory of liquidity preference, if the supply of real money balances exceeds the demand for real money balances
Sedbober [7]

Answer:

Sell interest-earning assets in order to obtain non-interest-bearing money

Explanation:

The liquidity preference theory states that investors prefer cash or highly liquid assets to long term assets that carry high risk.

When investors obtain long term assets the charge higher interest rates or premium in order to mitigate associated risk.

In this scenario when the supply of money is higher than demand, there is abundance of non interest bearing money that is highly liquid.

According to the liquidity preference theory investors will sell their interest bearing assets and go for assets with high liquidity (non Interest bearing money)

3 0
3 years ago
Read 2 more answers
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