Answer:
The money supply increases by $3300.
Explanation:
Money multiplier = 1/reserve ratio
= 1/0.4
= 2.5
the change in the money supply = deposit *multiplier -deposit
= $2,200*2.5 - $2,200
= $3300
Therefore, The money supply increases by $3300.
Answer:a.Total manufacturing costs for Job 313 =$52,500
Unit Product Cost for Job 313=$30
Explanation:
Total manufacturing costs=Direct materials+Direct labor costs+Overhead costs
But Overhead cost =115% of direct labor cost
= 115% x $10,600
=$12,190
Total manufacturing costs =$29,710 + $10,600+$12,190
=$52,500
Unit Product Cost=Total Manufacturing costs/ Total Number of Units Produced =$52,500 /1,750 units
=$30
Answer: $15.50
Explanation:
From the question, we are informed that someone establish a straddle on Fincorp using September call and put options with a strike price of $80 and that the call premium is $7.00 and the put premium is $8.50.
The most that can be lose on this position will be the addition of the call premium and the put premium. This will be:
= $7.00 + $8.50
= $15.50
Answer:
The correct answer is B. Accounting firms are prohibited from providing many types of consulting services to the companies they audit.
Explanation:
The main reason for this policy is that it does not allow conflicts of interest to arise that eventually produce widely known cases of fraud, such as those presented at the Enron and Worldcom companies.
The Enron case broke out in the U.S. when that energy giant announced what was once the biggest bankruptcy in the history of the country, with a debt of 31,000 million dollars, something overcome a few months later by the collapse of another colossus, WorldCom.
In June 2002 WorldCom, the second US telephone. and of the world, he admitted that he had lied in his accounting books for almost 4,000 million dollars and his actions - which shortly before touched his maximum of 16 dollars - collapsed to 20 cents. His bankruptcy exceeded Enron's: $ 35 billion of liabilities.
