The answer is true. A stock is a broad phrase that refers to any company's ownership certificates. A share, on the other hand, refers to a company's stock certificate.
You become a shareholder if you own a share of a specific corporation. Stocks are classified into two types: common and preferred. When you purchase stock in a corporation, you become a part-ownership of that company. If a corporation has 100,000 shares and you purchase 1,000 of them, you own 1% of the company. Investing in stocks is fundamentally about accumulating and growing wealth. The most basic suggestion for traders on how to invest money in the stock market is 'buy cheap, sell high.'
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Answer:
see below
Explanation:
Inflation refers to the gradual increase in the general prices of goods and services in the country over time. Increased economic activities in a country lead to an increase in the money supply, which leads to inflation. Inflation results in a reduction in the purchasing power of a country's currency.
A currency losing its purchasing power means one unit of money will buy fewer items than it could in the previous period. The inflation rate is measured using the consumer price index system. The system compares the price of a basket of consumer goods between different periods. An increase in the price of the basket means the currency will buy less of the basket, implying a decline in the currency strength.
Deflation is the opposite of inflation. Deflation is a decrease in prices. It results in the strengthening of a country's currency or increased purchasing power.
Answer:
The Company
The Impact of Each Transaction on the Accounting Equation:
1. Assets (Cash + $7,000) = Liabilities + Equity (Retained Earnings + $7,000)
2. Assets (Accounts Receivable + $5,500) = Liabilities + Equity (Retained Earnings + $5,500)
3. Assets (Cash -$2,150) = Liabilities + Equity (Retained Earnings -$2,150)
4. Assets (Cash +$2,750 Accounts Receivable -$2,750) = Liabilities + Equity
5. Assets (Cash -$1,000) = Liabilities + Equity (Retained Earnings -$1,000)
Explanation:
The Company applies the accounting equation, which states that Assets = Liabilities + Equity. With each transaction, the accounting equation is demonstrated as shown above. This means that each transaction that is properly recorded affects the accounting equation in two ways. Note that the accounting equation is the basis for the double-entry system of financial accounting.
Explanation:
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