Answer:
$700 (not given in the options)
Explanation:
When the policy is purchased with a payment made in advance, the entries recorded are
Debit prepaid insurance $8,400
Credit Cash account $8,400
After the first month, the expense incurred is
= 1/12 × $8,400
= $700
Entries then required
Debit Insurance expense $700
Credit Prepaid Insurance $700
Spacing, color, and contrast <span />
Answer:
$160
Explanation:
Calculation to determine How much does the investor gain or lose
Investor gain =[($20-$18.2)*100 Shares]- ($0.2*100 shares)
Investor gain=($1.8*100 shares)-($0.2*100 shares)
Investor gain=$180-$20
Investor gain=$160
Therefore The amount that the investor gain is $160
Answer:
<u>c. there is the possibility that the funds are used for riskier behavior than the lender agreed to.</u>
Explanation:
True. The term "Moral Hazard" as used in an investment context, often refers to a scenario where one party with a <em>lesser risk burden</em> in a business agreement, <u>deliberately </u>takes investment risk that would be detrimental to others in the agreement who have a higher risk burden.
It is an unethical business practice; a moral hazard, and so acts as a barrier to investors who may want to finance global growth.
