Which is the safest area for towing a skier?

What role do entrepreneurs plays in the u.s economy?

shepuryov [24]

1st lets define <span>entrepreneurs - starting his or her own bussiness offering a product, So I'd guess the role they play is the they start new bussiness, create jobs for people in need and they also bring something new to economy.

I hope I helped you </span>

4 0

3 years ago

Samson and Sons purchased a 6-month insurance policy for $1,200 which covers the months July through December. Initially the ent

Vika [28.1K]

Answer:

The answer is D.

Explanation:

To increase asset and expense, you debit while credit decreases it.

To increase, liabity, revenue(income), equity, you credit while debit decreases it.

An insurance that has been prepaid is an asset because the benefit has not been fully utilised.

Samson and Sons has paid for an insurance that will expire December at the beginning of July.

$1,200 for 6 months.

Samson and Sons needs to recognize this as the service is being enjoyed monthly.

Therefore, insurance expense every month will increase by $1,200/6

$200

Remember that expense increase by debit and asset(Prepaid Insurance) decrease by credit.

So we have:

Debit insurance expense $200; Credit prepaid insurance $200

3 0

3 years ago

What is the moral hazard problem?a. The problem that managers of a financial firm will take on riskier investments because they

s344n2d4d5 [400]

Moral Hazard occurs when a person increases its exposure to risk because someone else bears the the cost of those risk(Insurance companies)

Explanation:

Moral Hazard usually occurs when their is information asymmetry,the risk taking party has more information than the risk incurring party.

The financial crisis of 2008 is the best example of the Moral Hazard Problem.

The Moral Hazard Problem arises because the managers of the financial firm took over riskier investments because they believed that the federal government will save them from the bankruptcy.

3 0

3 years ago

Exercise 13-17 Swifty Company has been operating for several years, and on December 31, 2017, presented the following balance sh

mixer [17]

Answer:

(a) Current ratio = 2.746

(b) Acid-test ratio = 1.423

(c) Debt to assets ratio = 47.48%

(d) Return on assets = 6.15%

Explanation:

For Balance Sheet, pleased see attached file.

Current Ratio = Current Asset / Current Liabilities

Current Ratio = 212,800 / 77,500

Current Ratio = 2.746

Acid-Test Ratio = (Current Assets – Inventories) / Current Liabilities

Acid-Test Ratio = (212,800 – 102,500) / 77,500

Acid-Test Ratio = 1.423

Debt to Asset ratio = (Total Liabilities / Total Assets)*100

Debt to Asset ratio = (205,500 / 432,800)*100

Debt to Asset ratio = 47.48%

ROA = (Net Income / Total Assets)*100

ROA = (26,600 / 432,800)*100

ROA = 6.15%

The Current Ratio is a liquidity measure that shows the ratio between current asset and current liabilities. It tells how many dollars of the current asset are per dollar of current debts, that gives an idea of the company`s ability to perform its debts.

The Quick Ratio is also a liquidity indicator, but using its most liquid assets, to pay its current liabilities at maturity. The inventory, although it is a current asset, is not considered, since it cannot be converted into cash in a very short term.

The difference between the Quick Ratio and the Current Ratio, implies that while both are measures of the company's ability to pay its debts, the quick ratio also tells how much the company depends on its inventory to get that objective.

The Debt to Assets ratio is a financial ratio that shows how much of a company assets is owed to its creditors.

ROA is a financial indicator that gives an idea as to how efficient a company's management is at using its assets to generate earnings, by determining how profitable a company is relative to its total assets.

6 0

3 years ago

the United States, a three-pound can of coffee costs about $5. If the exchange rate is 0.8 euros per dollar and a three-pound ca

Luda [366]

Answer:

=4/7 cans of Belgium coffee for one can of US coffee

Explanation:

Cost of 1 can of coffee in US = $5

Cost of similar can of coffee in Belgium = EURO 7

Real Exchange Rate (Euro/$) =

Nominal Exchange rate × $\frac{Price\ in\ domestic\ market}{Price\ in\ foreign\ market}$

= 0.8 × 5/7

=4/7 cans of Belgium coffee per can of US coffee

Nominal exchange rate refers to the exchange rate between two countries which is not adjusted for inflation.

Nominal exchange rate when adjusted for inflation is known as real exchange rate.

Real rate = Nominal rate - Inflation rate

3 0

3 years ago