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Virty [35]
3 years ago
15

Amex Corporation invests excess cash to purchase $25,000 in corporate bonds on March 30, 2018. In addition to the $25,000, Amex

also paid a brokerage fee of $1,000. Amex intends to hold the bonds until maturity and has the ability to do so. When the bonds mature on March 30, 2020, Amex plans to use the cash for its business expansion. Which of the following is included in the journal entry on March 30, 2018?A) a debit to Held-to-Maturity Debt Investments for $25,000B) a debit to Trading-Debt Investments for $25,000C) a debit to Held-to-Maturity Debt Investments for $26,000D) a debit to Trading-Debt Investments for $26,000
Business
1 answer:
Yanka [14]3 years ago
6 0

Answer:

C. a debit to Held-to-Maturity Debt investments for $26,000

Explanation:

In as much Amex corporation is intending to place on hold the bonds till they mature; total investments must be recorded i.e price of bonds including commission for brokerage, as held to securities until they mature.

Classification of investments in securities are ; Held-to-maturity, meaning that the company is not planning to sell the investments hence hold on to them till they mature. They are however classified as non current assets. Investment in securities could also be made available for sale or held for further trading.

The journal entry is therefore;

Dr Held-to-Maturity debts investments $26,000

Cr Cash $26,000

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Answer:

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<u>Explanation: </u>

Harold would, first of all, find out the ease in accessing the market. If he finds that it is easy to access the market or target the consumers than he will develop distribution channels. Distribution channels take lots of time and effort.

Than Harold will determine the brand familiarity which means he will make the consumers familiar with his company's baby products. Brand familiarity affects the consumer's information about the product.

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3 years ago
Under which type of policy does the government reduce its expenditures and increase tax rates? A. contractionary monetary policy
zloy xaker [14]

Answer:

B. contractionary fiscal policy

Explanation:

The government influences economic direction through fiscal policy measures of increasing or decreasing its expenditure and taxation. Therefore, fiscal policies involve the government's actions of adjusting its spending and taxation to achieve desired economic objectives.

Fiscal policies can either be contractionary or expansionary. Contractionary measures are applied to control rising inflation and moderate the rate of growth. These policies aim at reducing liquidity in the market, thereby achieving stable prices. A reduction in government spending and an increase in taxation reduces liquidity or money circulation.

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Explain one impact on business of rising interest rates
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Describes how a monopoly controls an industry
stira [4]

Answer:

Key ideas:

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Explanation:

Monopoly refers to the state when there is only one company controlling the flow of products, therefore controlling the prices of it. There are a lot of examples of monopoly in the contemporary era such as AB Inbev, but it doesn't mean that it is totally a modern concept. Monopoly existed even in history take for example the case of Carnegie steel mills or the issue of railroads.

When one company possess such power that it can control the price, it can badly damages the interest of other investors and consumers. But the reason they create a monopoly is that they have heavy influence in politics. That is how they turn up the decisions to their own benefits. And monopolies always try to create hurdles for new investors to get in the market. Because they are charging whatever they want due to no competition, as soon as new competition arrive it will challenge the monopoly which it can't take.

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Cardboard is an example of which type of economic resource?​
blsea [12.9K]
<h3><u>Answer</u>;</h3>

A capital resource

<h3><u>Explanation</u>;</h3>
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