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azamat
3 years ago
15

Risk is an important concept affecting security prices and rates of return. Risk is the chance that some unfavorable event will

occur, and there is a trade-off between risk and return. The higher an investment’s risk, the
Business
1 answer:
Ulleksa [173]3 years ago
6 0

Answer:

The higher an investment’s risk, the HIGHER THE RETURNS AN INVESTOR WILL REQUIRE.

Explanation:

By saying that investors are risk averse, it means that given a similar level of returns, an investor will choose the investment with the lowest risk. That is why investors generally prefer and are willing to pay more for less risky investments, which results in lower returns (higher price ⇒ lower returns).

So high risk investments will always have a lower price than low risk investments, since the returns demanded by investors are proportional to the risk of the investment.

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Cambridge Co. uses the allowance method. During January 2019, Cambridge writes off a $640 customer account balance when it becom
yan [13]

Answer:

The correct answer is option (a).

Explanation:

According to the scenario, computation of the given data are as follows:

Allowance method shows that, if account is written off, then Accounts receivable account gets credited and Allowance accounts gets debited.

Here, both accounts are or balance sheet items.

So, it will not affect any expenses account.

8 0
3 years ago
During the current month, Grey Company sold 60,000 units for $10 each. Each unit had an equivalent cost of $6 each. The journal
Romashka [77]

Answer:

The sale entry would be:

Dr Trade Receivable  $ 600,000

Cr                     Sale            $600,000

And the inventory sent out of warehouse to customer would be recorded as:

Dr Cost of goods sold $360,000

Cr Finished Goods account  $360,000

Explanation:

As we know the sale is credit in nature and inventory sold on credit increases the trade receivable which is debit in nature.

So the entry would be:

Dr Trade Receivable  $ 600,000

Cr                     Sale            $600,000

And the inventory sent out of warehouse to customer would be recorded as:

The reason is that once the product is sold then the cost of finished goods is eliminated from the inventory account and would be charged to the cost of goods sold. So the entry would be posted by the cost of equivalent that the company has incurred to manufacture the product. Here the cost of equivalent is given and is $6 per unit.

So for the sale of 60,000 units the total cost of equivalent will be:

Total equivalent cost = 60,000 units * $6 per unit = $360,000

And the entry would be:

Dr Cost of goods sold $360,000

Cr Finished Goods account  $360,000

3 0
3 years ago
Tater and Pepper Corp. reported free cash flows for 2015 of $39.1 million and investment in operating capital of $22.1 million.
lara [203]

Answer:

$76.5 million

Explanation:

For computing the EBIT, first we have to do the following calculations

Free cash flow = Operating cash flow – Investment in operating capital  

$39.1 million = Operating cash flow -$ 22.1million

So, operating cash flow is

= $39.1 million + $22.1 million

= $61.20 million

Now

Operating cash flow  = EBIT – Taxes on EBIT + Depreciation  expenses

$61.2 million = EBIT- $28.9 million + $13.6 million

So, the EBIT is

= $61.2 million + $28.9 million - $13.6 million

= $76.5 million

5 0
2 years ago
Use the graph illustrating the market for gasoline-fueled cars to answer the question. Which situation corresponds with this gra
Reika [66]

The situation that corresponds with the graph of the market for gasoline-fuelled cars is the average price of crude oil decreased, causing the price of gasoline to decrease as well.

The graph is a diagram of the demand and supply curve for gasoline-fuelled cars. There is a rightward shift of the demand curve. A rightward shift of the demand curve indicates that the demand for gasoline-fuelled cars have increased.

<u><em>Factors that can lead to a rightward shift of the demand curve for gasoline-fuelled cars</em></u>

  • A decrease in the cost of a <em>complement good:</em> A <em>complement good</em> is a good that can be used together with a gasoline-fuelled car. An example of a <em>complement good</em> for gasoline-fuelled car is gasoline. If there is a decrease in the cost of gasoline, the demand for gasoline-fuelled cars would increase.

  • An increase in the price of<em> substitute goods</em>: A <em>substitute good </em>is a good that can be used in place of another good. A substitute for gasoline-fuelled cars are electric cars. If the price of electric cars increase, the demand for gasoline-fuelled car would increase.

To learn more, please check: brainly.com/question/14842844?referrer=searchResults

3 0
2 years ago
Which of the following is NOT a benefit of specialization and trade? Select one: a. Increase in productivity from specialization
lbvjy [14]

Answer:

b. It creates equality throughout society

Explanation:

Specialisation & Trade refer to tendency of countries to produce goods of their specialisation & trade them with each other , rather than each country producing each good.

It leads to increase in productivity from knowledge specialisation, based on advantage (absolute, comparative) based production. It also makes people better off, increase in welfare due to choice expansion among differing preferences.

However, it is not in anyways connected to equality throughout society.

3 0
2 years ago
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