Which bank has the best rating, which bank has the qualifications you want in a bank
Answer:
1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,280,000, it is probable that Huprey will lose the case.
2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable.
3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case.
Explanation:
Contingent liabilities must be recorded only when it is probable that the liability will happen and you can estimate the associated costs.
When contingent liabilities are only reasonably possible or you cannot estimate the amount, they must be included in the footnotes of the financial statements.
When contingent liabilities are not reasonably possible, nothing needs to be disclosed.
Answer:
$1,842,000
Explanation:
Calculation to determine Star Corp.'s total deductible business expenses for the year
STAR CORP.'S total deductible business expenses
Office rent $50,000
CEO Compensation $1,500,000
Salary paid to Janitor $20,000
Business meals $60,000
Client entertainment $100,000
Advertising $70,000
Taxes & Licenses $30,000
Life insurance policy on CEO-Premium $12,000
Total $1,842,000
Therefore Star Corp.'s total deductible business expenses for the year is $1,842,000
The correcto answer for this question is the letter c
Answer: Please refer to explanation
Explanation:
1.
The stock of money people hold to pay unpredictable expenses. <u>Precautionary Motive</u>
The stock of money people hold to take advantage of future changes in the prices of financial assets other than money. <u>Speculative Motive</u>
The stock of money people hold to pay everyday predictable expenses. <u>Transactionary Motive.</u>
<u>2.</u> This is an example of a decrease in Daesun's <u>Transactionary </u>demand for money.
Paying rent is a predictable everyday expense so it is Transactionary.
3. As the interest rate falls, the opportunity cost of holding money <u>falls</u> , and people <u>increase</u> their speculative balances.
The Opportunity cost of holding money falls because people will not be gaining such a high rate of return if they invest due to the lower interest rates so they can hold money with little repercussions. They will increase Speculative balances though to tak advantage when the rates go back up.