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3 years ago

In the context of investing, the term market refers to

1 answer:

5 0

Even though stocks, securities, and mutual funds are higher-risk investments, many people invest in them because they give higher rate of return.

The rate of return are higher on high risk investments compared with low risk investments. This is because high risk investment have a big possibility of incurring losses, however, if said investment venture is successful and it generates a huge profit, its return is also bigger than when you invest in low risk investments.

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Determine the average rate of return for a project that is estimated to yield total income of $936,000 over eight years, has a c

Feliz [49]

Answer:

18%

Explanation:

The computation of the average rate of return is shown below:

The average of annual income is

= $936,000 ÷ 8 years

= $117,000

And, the average investment is

= ($1,200,000 + $100,000) ÷ 2

= $650,000

Now the average rate of return is

= $117,000 ÷ $650,000

= 18%

6 0

3 years ago

Closing Entries with Net Income Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has

Mademuasel [1]

Answer:

a. Debit Teresa's Capital account for $770,000; and Credit Teresa's Drawing account for $770,000.

b. Teresa Schafer, Capital at the end of the period is $$1,955,000

Explanation:

a. Journalize the entry required to close the Teresa Schafer, Drawing account.

Since the drawing will affect capital by reducing it, the journal entry will look as follows:

Particulars Dr ($) Cr ($)

Teresa's Capital account 770,000

Teresa's Drawing account 770,000

(To record the closing the Teresa Schafer, Drawing account.)

b. Determine the amount of Teresa Schafer, Capital at the end of the period.

To do this, we have to calculate the net profit first as follows:

Net profit = Total revenue - Total cost = $3,190,000 - $2,350,000 = $840,000

Since net profit will increase capita while drawing will reduce capital, we therefore have:

Capital at the end of the period = Capital + Net profit - Drawing = $1,885,000 + $840,000 - $770,000 = $1,955,000.

Therefore, Teresa Schafer, Capital at the end of the period is $$1,955,000.

7 0

4 years ago

which of the following is not a reason to give yourself extra "cushion" when driving? poor visibility on the road poor road cond

Snezhnost [94]

Cushion is the amount of distance you keep between you and the car in front of you that allows you to easily maneuver in any condition. Typical this distance is about 3 seconds.
You should add one additional second for any condition that is less than perfect. Unperfect conditions are heavy traffic, not feeling well, or other distractions.
You should add two additional seconds to your space cushion if the it is raining or snowing. Each of the given reason (poor visibility, poor road conditions, inclement weather) is a reason to give yourself extra "cushion" when driving.

3 0

4 years ago

$511,000 bond issue sold for $483,000. Therefore, the bonds: Multiple Choice Sold for the $511,000 face amount less $28,000 of a

Brrunno [24]

Answer: Sold at a discount because the market interest rate was higher than the stated rate. S

Explanation:

the bonds was Sold at a discount because the market interest rate was higher than the stated rate. This is as a result of the bonds issued which were at a discount having its market price way lower than its face value. Bonds tends to be sold at a discount when the market interest rate has exceeded the stated rate of the said bond.

6 0

3 years ago

Zwick company bought 28,000 shares of the voting common stock of handy corporation in january 2018. in december, handy announced

OLEGan [10]

Answer:

Zwick company's dividend revenue from Handy corporation in December 2018 would be = $280,000

Explanation:

Since Zwick company has bought 28,000 shares of Handy Corp. and Handy has announced a cash dividend of $10 per share. We will calculate Zwick company's dividend revenue would be,

Dividend revenue = ownership shares x dividend per share

Dividend revenue = 28,000 shares x $10 per share = $280,000

5 0

3 years ago