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3 years ago

You mow your neighbor's yard and he pays you $25. Which function of money does this BEST represent?

2 answers:

5 0

You mow your neighbor's yard and he pays you $25. Which function of money does this BEST represent? Medium of exchange. The function of money, medium of exchange, is the exchange of money for a good or service. They are facilitating the transaction by paying the neighbor for the lawn cutting service.

Ivan3 years ago

4 0

Answer:

The correct answer is Medium of Exchange.

Explanation:

There are three Functions of Money. One of the function is Medium of Exchange. Second one is the Store of Value and the Third one is Unit of account.

In this example, the function of the money is represented as the Medium of Exchange. One neighbor mow others neighbor's yard and in exchange of this service, the other neighbor paid $25 to that neighbor who did the service of mowing for him.

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You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect

dedylja [7]

Answer:

Amount investment in Sock Y = - $126,000

Beta of portfolio = 1.636

Explanation:

Data provided in the question:

Total amount to be invested = $140,000

Stock X Y

Expected return 14% 10%

Beta 1.42 1.18

Expected return of portfolio = 17.6%

Now,

let the weight invested n stock X be W

therefore,

Weight of Stock Y = 1 - W

thus,

( W × 14% ) + (1 - w) × 10% = 17.6 %

14W + 10% - 10W = 17.6%

4W = 7.6

W = 1.9

Therefore,

weight of Y = 1 - 1.9 = -0.9

Thus,

Amount investment in Sock Y = Total amount to be invested × Weight

= 140,000 × ( - 0.9 )

= - $126,000 i.e short Y

Beta of portfolio = ∑ (Beta × Weight)

= [ 1.42 × 1.9 ] + [ 1.18 × (-0.9) ]

= 2.698 - 1.062

= 1.636

6 0

2 years ago

Mouse Inc. uses the alternative method of accounting for prepayments and purchased a $1,200, 6-month insurance policy. The compa

zysi [14]

Explanation:

The adjusting journal entry to record the given adjustment is shown below:

At the year-end

Insurance expense A/c Dr. A/c $800

To Prepaid Insurance A/c $800

(Being insurance expense is recorded)

The computation is given below:

= Prepayment done for 6 months insurance policy - expired insurance

= $1,200 - $400

= $800

3 0

2 years ago

A company has a discount on a forward contract for an asset. How is the discount recognized over the life of the contract?

exis [7]

Answer: It is charged to accumulated other comprehensive income.

Explanation:

The discount is recognized over the life of the contract when it is charged to accumulate other comprehensive income.

5 0

2 years ago

Buffalo Corporation is authorized to issue 45,000 shares of $5 par value common stock. During 2020, Buffalo took part in the fol

Nookie1986 [14]

Answer:

Dr Cash $209,700

Cr Paid-In-Capital in excess of par-common stock $187,200

Cr Common Stock $22,500

B. Dr Land $53,900

Cr Common Stock $5,500

Cr Paid-In-Capital in excess of par-common stock $48,400

C. Dr Treasury Stock $24,380

Cr Cash $24,380

Explanation:

A. Preparation of the journal entry to record item1

Dr Cash (4,500*$48-6,300) $209,700

Cr Paid-In-Capital in excess of par-common stock $187,200

($209,700-$22,500)

Cr Common Stock $22,500

(4,500*$5)

(Being to record common stock issued)

B. Preparation of the journal entry to record item 2

Dr Land (1,100*$49) $53,900

Cr Common Stock $5,500

(1,100*$5)

Cr Paid-In-Capital in excess of par-common stock $48,400

($53,900-$5,500)

(Being to record land puchased in exchange for common stock)

C. Preparation of the journal entry to record item 3 using the cost method

Dr Treasury Stock $24,380

(530*$46)

Cr Cash $24,380

(Being to record purchase of treasury stock)

5 0

2 years ago

Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first bond is issued at a deep di

I am Lyosha [343]

Answer:

Explanation:

The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.

If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.

Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant

3 0

2 years ago

You mow your​ neighbor's yard and he pays you​ $25. Which function of money does this BEST​ represent?

You mow your neighbor's yard and he pays you $25. Which function of money does this BEST represent?