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3 years ago

Why are bonds known as fixed income investments?

Business

1 answer:

Alinara [238K]3 years ago

6 0

Answer:

Option D. All of the above

Explanation:

The reason is that on a fixed income investment, there are periodic income payments with agreed fixed interest rate. So the borrower also promise to make the full repayment of the principal in most of the cases and there are sometimes (not always) option to convert the amount lent into shares. The principal payment always fixed because the investor receives it either in the form of greater rate of returns or all of it in the form of principal repayment. This is agreed with the lender, So all the options are correct here. Option D is the right answer.

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By how much did annualized consumption decline in november of 2008 when gdp was $14 trillion?

irga5000 [103]

<span>Annualized consumption dropped immensely in November 2008. The 5 years prior to 2008 were some of our strongest yet, also, a GDP of $14 trillion is nothing to balk at. I am thoroughly surprised that the decline we experienced then came so soon after a long streak of winning.</span>

5 0

3 years ago

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una

ollegr [7]

Answer:

Bad debt expense A/c Dr $4,900

To Allowance for doubtful debts $4,900

(Being bad debt expense is recorded)

Explanation:

The journal entry is shown below;

Bad debt expense A/c Dr $4,900

To Allowance for doubtful debts $4,900

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Net Credit sales × estimated percentage given - credit balance of allowance for doubtful debts

= $920,000 × 0.6% - $620

= $5,520 - $620

= $4,900

6 0

3 years ago

Please please answer these help me plz

adell [148]

Explanation:

Control

Entrepreneurs naturally have long-term vision and find focus on quarterly profits frustrating

As an owner of a privately held company, you have complete authority over operational decisions and don’t have to worry about shareholder expectations and interference. Shareholders in public companies are often focused on current earnings and they can exert tremendous pressure to increase earnings in the short term in order to increase the value of their stock.

Right of Non-Disclosure

Privately held companies are not required to disclose details about their operations that could potentially benefit competitors. The SEC has stringent disclosure requirements for public companies, including the details of investor conferences, research analyst meetings and shareholder discussions.

Confidentiality

Information such as executive compensation, legal settlements and other sensitive information cannot be kept confidential in public companies. Compliance with these SEC disclosure regulations can expose information that you would prefer to keep confidential.

The United States is considered the world's premier free-market economy. Its economic output is greater than any other country that has a free market. 1 The U.S. free market depends on capitalism to thrive. The law of demand and supply sets prices and distributes goods and services.

5 0

3 years ago

Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2)

Genrish500 [490]

Answer:

Date Account Title Debit Credit

Dec. 31 Bad debt expense $9,000

Allowance for doubtful accounts $9,000

Working

= 3% * 300,000

= $9,000

Date Account Title Debit Credit

Dec. 31 Bad debt expense $12,000

Allowance for doubtful accounts $12,000

Working

= 1% * total debt

= 1% * (900,000 + 300,000)

= $12,000

Date Account Title Debit Credit

Dec. 31 Bad debt expense $12,500

Allowance for doubtful accounts $12,500

Working

= 6% * Accounts receivable

= 6% * 125,000

= $7,500

As the Allowance account is in debit, it means that bad debt exceeded the allowance so this balance needs to be added to properly cater for bad debts.

= 7,500 + 5,000

= $12,500

8 0

3 years ago

Suppose the price is $6 per sheet of plywood. Suppose the price falls to $4 per sheet of plywood.How much of the increase in con

Pie

Answer:

"$2,500" is the appropriate answer.

Explanation:

The question given seems to be incomplete. Below there is a attachment of full question is provided.

The given values are:

Plywood's price,