Answer and Explanation:
Margin trades work this way because they allow them to extend the amount of money invested regardless of whether the security's price drops or rises. In a more simplified way, we can state that the margin trade allows that even if the price of a security goes up or down, the invested money presents a percentage of gain or loss much bigger than the original value. This is because this money was deposited as a loan guarantee, allowing interest to run on it, increasing it.
Answer:
Single step income statement
Explanation:
The single step income statement is the simplest form in which an income statement is prepared, e.g.
Revenues:
- Sales revenues $100
- Interest income $20 $120
Expenses:
- Rent expense $30
- Utilities expense $10
- Wages and salaries $60 <u>($100)</u>
Income before taxes $20
Tax expenses <u> ($4.20)</u>
Net income $15.80
A multi-step income statement is more complex, since operating revenues and costs are reported first in order to determine operating income, then other revenues and expenses are introduced and income before taxes is calculated.
Let understand that "short-term investment" are investments that can be easily converted to cash and has a maturity period of less than a year. Example of this investment are Money Market.
"Long term investment" are investment that runs over a long period of time and yield higher return than the short-term investment". Example of these investment are stocks, bonds, real estate
- People invest in "Long term investment" because its offers more risk for higher rewards.
In conclusion, long-term investment has a greater return because it has greater risk.
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It must be debatable. Hope this helps
Answer:
minimize
Explanation:
Tax Liability refers to the tax amount owed by the person or company and which is paid to the local tax authorities. However, there are certain rules that assist in calculating the tax liability of an individual or company. In order to minimize this amount an individual or a company needs to properly plan their financial benefits (such as income, savings and/or dividends) and discuss with tax consultant on the best way to minimize the tax liability.