Which of the following accurately explains why scarcity forces individuals and society to incur opportunity costs?

When an interest-bearing note is dishonored at maturity and ultimate collection is expected, the entry for the dishonoring, assu

tresset_1 [31]

Answer:

The correct answer is C. a credit to Notes Receivable and Interest Revenue.

Explanation:

When this registration is made, what occurs is to decrease the obligation they have with our organization, and an increase in income due to the recognition of the interests effectively recognized at the expiration of the obligation. Dishonoring the note means recognizing that we no longer have a callable value, and that the value receivable is extinguished as a result of the end of the agreed period of permanence.

8 0

4 years ago

Read 2 more answers

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price

Sergio039 [100]

Answer:

a. The yield on the repo if it has a 7-day maturity is 1.03%

b. The yield on the repo if it has a 21-day maturity is 0.34%

Explanation:

a. As per the information given in the question we have

Purchase price of treasury securities = $ 24,995,000

Repurchase price or Buy back price of treasury securities = $ 25,000,000

Maturity Period = 7 days

Applying the above values in the formula we have :

The formula for calculating the yield on repo is

= [ ( Repurchase price - Purchase price ) / Purchase price ] * ( 360 / Maturity Period )

= [ ( $ 25,000,000 - $ 24,995,000 ) / $ 24,995,000 ] * ( 360 / 7 )

= [ ( $ 5,000 ) / $ 24,995,000 ] * ( 360 / 7 )

= 0.0002 * 51.428571

= 0.010288

= 0.0103 ( when rounded off to four decimal places )

= 1.03 %

b. As per the information given in the question we have

Purchase price of treasury securities = $ 24,995,000

Repurchase price or Buy back price of treasury securities = $ 25,000,000

Maturity Period = 21 days

Applying the above values in the formula we have

= [ ( $ 25,000,000 - $ 24,995,000 ) / $ 24,995,000 ] * ( 360 / 21 )

= [ ( $ 5,000 ) / $ 24,995,000 ] * ( 360 / 21 )

= 0.0002 * 17.142857

= 0.003429

= 0.0034 ( when rounded off to four decimal places )

= 0.34 %

4 0

3 years ago

Mann Corporation decided to issue common stock and used the $120,000 proceeds to retire all of its outstanding bonds on January

Yuri [45]

Answer:

Return on equity in 2017 is 12% while that of 2016 is 12.5%

Explanation:

The formula for return on equity is given as net income/equity.

The net income is $120000 for 2017 and $100000 for 2016.

Shareholders' average equity is 1000000 shares in 2017 and 800000 shares in 2016.

2017 2016

Return on equity 120000/1000000 100000/800000

Return on equity 0.12 0.125

The return on equity is 12.0% in 2017 and 12.5% in 2016.

From all indications, the issue of additional shares to the tune of $120000 lead to a reduction in return on equity in 2017 by 0.5%

5 0

3 years ago

A computer company has $2,800,000 in research and development costs. Before accounting for these costs, the net income of the co

strojnjashka [21]

Answer:

$800,000 loss

Explanation:

The Research and development cost is recorded as an expense in the income statement. Before considering the income statement the net income of the company is $2,000,000 it means the research and development expense has not been charged yet. After charging the expense against the income for the period will be:

Net income = Net income beofre R&D cost - R&D cost = $2,000,000 - $2,800,000 = -$800,000

Hence, there is a loss of $800,000 if we consider the R&D cost.

7 0

3 years ago

A major concern voiced by u.s. critics of the north american free trade agreement (nafta) is that it would result in: question 1

Harman [31]

A major concern voiced by US critics of the North America free trade agreement is that it would results IN LOSS OF JOBS IN USA ECONOMY.
This concern is based on the believe that if global trade experts make prediction that the value of dollar will soon fall, that prediction will bring about increase in the prices of imported goods in USA while the prices of USA goods sold oversea will drop.

3 0

3 years ago