So it’s gonna be (D or (A because it’s wat u earned by yourself not wat someone give you or its not if u lent money
Answer:
B. A decline in the value of the inventory.
Explanation:
Cost basis accounting: It is a method of calculating the value of inventory on actual cost for tax purposes as the purchase price is adjusted for dividends and return of capital distribution. It uses lower of cost either original cost or current market price. The market price should not be less or more than the net realizable value. Net realizable value is defined as the selling price minus cost of completion. Therefore, the cost basis of accounting to the lower-of- cost-or-net-realizable-value basis in valuing inventory is necessitated by a decline in the value of the inventory.
Answer:
Explanation:
Being a juice producer, for which the raw material is oranges, Coolmist has to keep an eye on the prices of oranges. To protect herself from an increase in the cost of oranges, the financial engineering strategy that would be most beneficial to her is that she should buy in-the-money calls on oranges so that she will have an option to buy the oranges at the pre-decided strike price of the call option.
By doing the above, she would be protected against the price hike.
Answer:
In this scenario, the measures implemented by Congress will most likely create the fiscal cliff.
Explanation:
In managing an economy, agencies always try to find a balance between growth and inflation. In general, individuals always want a situation where there is economic growth, however if the growth is not controlled it can lead to cases of inflation where the prices of goods and services are too high. There are two major ways in which the economy can be brought to a balance, namely; fiscal policy and monetary policy. Fiscal policy deals with the use of incentive and laws by the government to control the economy. The incentives include; adjusting government expenditure and the taxes. On the contrary, monetary policy is utilized by the monetary authority to regulate the supply of money to the economy.
A fiscal cliff is the use of a combination of tax hikes and cutting expenditure across the board by government agencies to cause severe economic decline.The fiscal cliff was a concept that was to be effected in December of 2012, however, there was concern that using the two combinations might drive the economy which was already shaky to a detrimental end. On the other hand, predictions showed that going through with the idea would reduce the budget deficit considerably.