Answer:
The correct option is (b)
Explanation:
Given:
Monthly payment for 6 months = $30 per month
Time period = 6 month (6 periods)
Monthly interest rate = 2%
In order to compute borrowed amount, present value of these payments need to be computed which is an annuity as same amount of $30 is paid.
Checking PVIFA table for 2%, 6 periods, annuity factor is 5.6014.
Borrowed amount = Monthly payment × PVIFA(2%,6)
= 30 × 5.6014
= $168.042
Borrowed amount is $168.042 or $168.22 approximately (difference in value due to annuity factor being rounded off)
Answer:
The answer is C. statement of retained earnings
Explanation:
The level of saving is important for long-run growth.
Answer:
Most trades on NYSE are executed electronically. Brokers can still make trades manually, but the majority of trades today are executed through the exchange's electronic systems.
Explanation:
A Floor trader is someone who who owns a trading license and buys and sells for his or her personal account, an individual on the floor of the NYSE.
A designated market maker is one who acts as a dealer in one or more securities on the floor of the NYSE.
A dealer is one who maintains an inventory from which he or she buys and sells securities.
A broker is an agent who arranges a transaction between a buyer and a seller of equity securities.
Answer:b. net income is overstated
Explanation:
The cost of inventory which is a constituent of cost of goods sold will have an impact on the income, an higher cost of inventory means low net income and lower cost of inventory means an higher net income. Therefore if the inventory is understated it leads to profit overstatement.
Net income will not be understated because a cost item has been understated but it will only be overstated, cost of merchandise sold is understated but this is the action and not the effect, merchandise on the balance sheet will be understated and not overstated.
