Answer:
Bonds are different from stocks because bonds promise fixed payments for the length of their maturity.
Explanation:
The stocks and binds differ in a way that the payments on stocks are variable and subject to many factors such as Net income and dividends which are variable. On the other hand, the bonds carry a fixed payment and this payment is made whether a company is making a profit or not and this doesnot change.
Answer:
The answer is <u>"2.04%".</u>
Explanation:
Purchase price = $490,000
Selling price = $500,000
Percentage return on his investment = ?
Return on investment = Profit / Purchase price
Profit = Selling price − Purchase price
Return on investment = (Selling price − Purchase price) / Purchase price
= ($500,000 - $490,000) / $490,000
= $10,000 / $490,000
= 0.0204
To find percentage, multiply it with 100;
0.0204 x 100 = 2.04%
Thus the percentage return on his $490,000 investment = <u>2.04%</u>
Answer:
Explanation:
a. The preparation of the retained earnings statement for the month ended November 30, 2018 is presented below:
Healthy Products Company
Retained Earning statement
For the month ended November 30, 2018
Beginning balance of retained earning $2,940,000
Add: Net income $93,500
Less: Cash Dividend paid -$7,000
Ending balance of retained earning $3,026,500
b. As the trial balance, income statement, and the statement of the stockholder equity that comprise of common stock and the retained earning is prepared before preparing the balance sheet. Because the amounts are required to preparing the balance sheet
Answer:
Economists do not assume that consumers and firms always make correct decisions, instead they assume that consumers and firms make rational decisions
Explanation:
This assumption that firms and consumers make rational decision is based on the economic rationality principle. The principle theorizes that people will usually consider actions, decisions and options based on logical thinking rather than other subjective elements such as morals, psychology and emotion. As a result of this principle economists assume that people will always make rational decisions.
The meaning of this is that consumers and firms would usually weigh the pros and cons of an issue before taking a decision and as described in the correct statement, rational decisions are logical decisions they do not necessarily mean they are correct decisions.
A consumer can make a logical decision to buy a product based on information made available but this may be a wrong decision because the information is misleading or wrong. It is a logical but incorrect decision.
Answer: Acculturation
Explanation:
Acculturation occurs when an individual is more excited with a culture they immigrated into, than their native culture. Most individual are drawn to a culture which is the dominant culture in the society, while neglecting their native culture.