Answer:
C. not increase proportionally with sales if the existing level of fixed assets is sufficient to support current sales.
Explanation:
The total assets comprises of current assets, fixed assets and the intangible assets
.
The current assets includes cash, stock, account receivable, etc
Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.
And, the intangible assets include patents, copyrights, goodwill, etc.
If the existing level of the fixed asset is enough to support the current assets so the projected fixed assets balance would not be increased proportionally with the increase in sales
Answer:
7%
Explanation:
nominal interest rate = real interest rate + expected inflation rate
nominal interest rate = 5% + 2% = 7%
Usually the nominal interest rate has four major components:
- real interest rate: the net interest rate received by a lender or an investor
- inflation rate: the general rise in the prices of goods and services, as inflation increases, the purchasing power of a currency decreases
- liquidity risk premium: usually collateralized loans include a liquidity risk premium since not all assets can be easily converted to cash.
- credit risk: possibility of the borrower defaulting the loan
A negative externality or spillover cost occurs when the total cost of producing a good exceeds the costs borne by the producer.
- Spillover costs, commonly referred to as "negative externalities," are losses or harm that a market transaction results in for a third party. Even though they were not involved in making the initial decision, the third party ultimately pays for the transaction in some way, according to Fundamental Finance.
- An incident in one country can have a knock-on effect on the economy of another, frequently one that is more dependent on it, known as the spillover effect.
- Externalities are the names for these advantages and costs of spillover. When a cost spills over, it has a negative externality. When a benefit multiplies, a positive externality happens. Therefore, externalities happen when a transaction's costs or benefits are shared by parties other than the producer or the consumer.
Thus this is the answer.
To learn more about spillover cost, refer: brainly.com/question/2966591
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Any sort of funds used In financing a firm is recorded in the Financing activities while the loans cash will be recorded in the Financing activities of the statement of cash flows as well.
<h3>What is the
Financing activities of cash flows?</h3>
This part of cash flows record the financing activities such as raising money through lending or issuing a bond as well as paying back to the investors.
Therefore, both transactions will be recorded in the financing activities of cash flows.
Read more about financing activities
<em>brainly.com/question/14441404</em>
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