All categories

3 years ago

Which of the following statements is(are) true:

Business

1 answer:

Rudiy273 years ago

5 0

Answer:

Neither I nor II are correct

Explanation:

I. The nominal interest rate is also referred to as the APR or the stated rate.

This statement is not true because nominal interest rate is different from the annual percentage rate (APR).

A nominal interest rate is basically the interest rate is charged by banks or other financial institutions on a loan, and other expenses on the loan are not added to the interest when interest rate is being determined.

On the other hand, APR is nominal interest rate plus other expenses incurred in other to get the loan.

Therefore, nominal interest rate is usually lower than the APR. This makes them to be different.

II. You should use the nominal interest rate to compare two alternative investments/loans with different compounding periods.

This statement is not correct.

The interest rate is used to to compare two alternative investments/loans with different compounding periods is the effective interest rate.

The effective interest rate is the actual amount of interest rate that a lender or an investor earned on his loan, investment because of compounding that is done during a specific period of time. The effective annual interest rate is the interest rate that is employed to compare different investment products because, unlike other interest rate, compounded interest are estimated differently by it.

Therefore, Neither I nor II are correct.

I wish you the best.

You might be interested in

Granting access to a user based upon how high up he is in an organization violates what basic security premise?

hodyreva [135]

Granting access to a user based upon how high up he is in an organization violates "the principle of least privileges."

As the principle of least privileges states that a person should be given only those privileges that are needed or are necessary to perform a specific job or task and nothing more.

The principle of least privileges states that you assign users the minimum set of privileges which they require to do their jobs, according to their roles.

The principle of least privilege prevents the spread of malware on your network. An administrator or superuser with access to a lot of other network resources and infrastructure could potentially end up spreading malware to all those other systems which he gets access to.

Hence, if the organization grants access to a user based upon how high up he is then the organization violates the principle of least privileges.

To learn more about the least privileges here:

brainly.com/question/27034248

#SPJ4

3 0

2 years ago

Assume that the level of capital flows between the U.S. and the country of Krendo is negligible (close to zero) and will continu

murzikaleks [220]

Answer:

Stronger

Explanation:

Given that inflation affects trade flows, as the higher price of commodities have negative impacts on exports rates. Thus, all things being equal, it is expected that high inflation should cause downward pressure on the exchanger rate of Krendo.

Hence, the inflation effect will be STRONGER than the interest rate effect in influencing the exchanger rate of Krendo against the U.S. dollar.

3 0

4 years ago

The following transactions were completed by the company.

dybincka [34]

Answer:

The impact of each transaction on individual items of the accounting equation:

A. The company completed consulting work for a client and immediately collected $6,200 cash earned.

Assets (Cash + $6,200) = Liabilities + Equity (Retained Earnings + $6,200)

B. The company completed commission work for a client and sent a bill for $4,700 to be received within 30 days.

Assets (Accounts Receivable + $4,700) = Liabilities + Equity (Retained Earnings + $4,700)

C. The company paid an assistant $1,750 cash as wages for the period.

Assets (Cash -$1,750) = Liabilities + Equity (Retained Earnings -$1,750)

D. The company collected $2,350 cash as a partial payment for the amount owed by the client in transaction b.

Assets (Cash +$2,350 and Accounts Receivable -$2,350) = Liabilities + Equity

E. The company paid $840 cash for this period's cleaning services.

Assets (Cash -$840) = Liabilities + Equity (Retained Earnings -$840)

Explanation:

The accounting equation is that assets are always equal to liabilities and equity before and after every business transaction. It is an important principle of accounting and the fulcrum of the double-entry system of accounting. It establishes the two sides to every transaction. It can be used to show the impact of daily business transactions on the assets, liabilities, and stockholders' equity.

7 0

3 years ago

Razor scooters had to issue a recall because the bolts created to connect the t-handle bars of the scooter with the board were t

Effectus [21]

<span>A restatement section 402 defect in design.</span>

5 0

3 years ago

The difference between total assets of a firm and its total liabilities is called?

Lena [83]

The difference between the total value of assets and the total value of liabilities is equity. Also known as common equity and owners equity.

Assets represent valuable resources that your company manages. Liabilities represent the company's obligations, while both debt and equity represent how the company's assets are financed.

The sum of the difference between assets and liabilities is equity, which is the remaining net ownership of the company by the owners.

In its simplest form, a balance sheet can be divided into two categories: assets and liabilities. assets are items owned by a company that can provide future economic benefits. A liability is something you owe to another party.

Learn more about Liabilities here brainly.com/question/14921529

#SPJ4

4 0

1 year ago