Answer:
Stocks
Explanation:
Stocks also referred or recognized as the equity or the shares, it is defined as the kind or form of the security which signifies the ownership that is proportionate while issuing to corporation or business.
The stock is entitles the stakeholders to the proportion of the assets and the earnings of the corporation, and these investments could be bought from online stock brokers.
So, the best assets for the long term investor in order to fend off the threats of taxes and inflation when making the money to grow is stocks.
Answer: c. Marginal Cost
Explanation:
A Competitive firm operates in a market where they are price takers. This means that the price they charge is equal to both their average revenue and their Marginal Revenue.
P = MR = AR
Companies maximise profit at a point where Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized.
If the Competitive firm's Price is the same as its Marginal Revenue this means that to maximise profits, the firm should choose an output level where the price is equal to the marginal cost.
Answer:
A) Contra to the particular asset.
Explanation:
A valuation allowance account is a reserve or contra account against deferred tax assets based on the likelihood that those assets will not be realized.
For example, a common valuation allowance account is Allowance for Doubtful Accounts which is a contra asset account of Accounts Receviable.
Answer:
a. Premium
b. Discount
c. Discount
Explanation:
a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 7% - 6% = 1% premium
Therefore, Valley's bond will sell at a premium.
b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, Spring's bond will sell at a discount.
c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, River Inc.'s bond will sell at a discount.
