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Bumek [7]
3 years ago
10

People who might need to retrieve part or all of their investment relatively soon, such as the elderly, are often advised to inv

est a higher percentage of their money in bonds, and thus a lower percentage in stocks, than people who can leave the investment untouched for decades. We know, however, that bonds typically have a lower rate of return than stocks. Why would people be advised to invest in assets that give lower average rates of return
Business
2 answers:
jeyben [28]3 years ago
7 0

Answer: C. While stocks have a higher rate of return in the long run, they are much more volatile (riskier) in the short run. As such, they have a higher probability of having less than the original value of the investment for people who might need to withdraw the investment in the short run.

Explanation:

As stated, people who need to withdraw part or all of their investments in a short time frame such as the elderly are advised to invest in bonds as opposed to stock.

To properly benefit from Stock ownership, one has to be willing to leave it for a long period of time because stocks are more volatile in the short run. If a person needs to withdraw in a short horizon and goes in on Stock, they may lose some of their money due to Capital losses if the Stock reduces in value.

Bonds on the other hand will give a steady income so that even if you wish to withdraw in a short time, you can with the probability of no losses in that short time frame.

Misha Larkins [42]3 years ago
7 0

Answer:

The payment from bond is guaranteed, while the value of stock fluctuates.

Explanation:

Stock is a risky asset and the risk is compensated by a higher rate of return in the long run. However, the stock being a risky asset can lose its value that generally fluctuates.

However, bond is not categorized as a risky asset and its payment is guaranteed.

Therefore, it is advisable for the elderly to invest a higher percentage of their money in bonds, and thus a lower percentage in stocks.

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Waupaca Company establishes a $400 petty cash fund on September 9. On September 30, the fund shows $122 in cash along with recei
Lemur [1.5K]

Answer and Explanation:

The Journal entry is shown below:-

September 9

Petty cash fund Dr, $400

     To Cash $400

(Being establishment of petty cash fund is recorded)

Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.

September 30

Merchandise Inventory Dr, $51

Postage expense Dr, $73

Cash Short and over Dr, $13

Miscellaneous Dr, $141

      To Petty Cash $278

(Being reimburse of petty cash find is recorded)

Here we debited the merchandise Inventory, postage expense, cash short and over and miscellaneous as it is expenses while we credited the petty cash as is reimbursed.

October 1

Petty cash fund Dr, $60

($460 - $400)

     To Cash $60

(Being increase in petty cash fund is recorded)

Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.

6 0
3 years ago
Granite Company purchased a machine costing $128,000, terms 3/10, n/30. The machine was shipped FOB shipping point and freight c
Alborosie

Answer:

machine enter the accounting at <em> 138,210 dollars</em>

Explanation:

cost: 128,000 x ( 1 - 3%) = 124,610

shipping cost:                      2,800

installation cost:              <u>   10,800   </u>

total incurred cost

to leave the machine

ready for use:             <em>    138,210</em>

<em />

<em>The damge are expenses for the period as they arent a necessary cost to utilize the machine.</em>

<em>The company used the discount price over the list price as this is the atual cost incurred</em>

8 0
3 years ago
Information regarding Maxwell’s direct labor cost for the month of January follows: Direct labor hourly rate paid $ 29.20 Total
Umnica [9.8K]

Answer:

  1. <u>std rate  $30.64</u>
  2. <u>efficiency variance  $6,128.00</u>

Explanation:

We will work the rate variance to obtain the standard rate:

(standard\:rate-actual\:rate) \times actual \: hours DL \: rate \: variance

actual rate  $29.20

actual hours 11,700

difference  $1.44

rate variance  $16,800.00

(standard\:rate-29.2) \times 11,700 = 16,700

(standard\:rate= 16,700 \div 11,700 +29.2

<u>std rate  $30.64</u>

<u></u>

<u>Now we can solve for the labor efficiency variance:</u>

(standard\:hours-actual\:hours) \times standard \: rate = DL \: efficiency \: variance

std  hours 11700

actual hours 11500

std rate  $30.64

difference 200

<u>efficiency variance  $6,128.00</u>

The diference is positive, sothe variance is favorable.

4 0
3 years ago
If costs are 85% of sales (and profit is 15%), what is the amount of extra sales needed to equal $1,200 in profit from purchasin
attashe74 [19]

Answer:

$8,000

Explanation:

Given that

Profit = $1,200

Cost = 85% of sales

Profit = 15%

We know that

Sales = Cost + Profit

         = 85% + 15%

         = 100%

So sales percentage is 100%

Now we use the unitary method to find out the extra sales which would be

= Profit × sales percentage ÷ profit percentage

= $1,200 × 100% ÷ 15%

= $8,000

7 0
3 years ago
a local pizza parlor is selling two different shapes of cheese pizza for the same price. You can get two small square pizza that
Mamont248 [21]

Answer:

The large round pizza with a 14 inch diameter

Explanation:

We can see this as a simple geometry problem. Which is the largest area? Two squares of 8 inches side or a 14 inch diameter circle? Let's see. The area of the square is side * side, in this case 8 * 8, so we have 64 squared inches  in each of the two pizzas. That makes a total of 128 squared inches (64 + 64) for the two small squared pizzas. Now to calculate the circle, we must do the following formula: \pi *r^{2} where r is the radium of the circle. The radium is half of the diameter, in this case 14/2=7. So the formula is 7^2, that is to say 49, multiplied by pi. This gives us approximately 153.93 squared inches, which is bigger than 128. A large round pizza with 14 inches of diameter gives more pizza.

We can also think that most people don't like the crust of the pizza. Two pizzas have more crust than one. So one pizza, besides being bigger, can save you to eat the crust and more cheese and sauce.

5 0
3 years ago
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