Which is the best definition of voluntary exchange?

Sherman Peabody earns a monthly salary of â€‹$1,500â€‹, which he receives at the beginning of each month. He spends the entire a

ale4655 [162]

Answer: A. maximizes the profits from money management.

Explanation:

The optimal average level of money is indeed the amount that maximises profit from money management.

Money management is essentially taking charge of your money and ensuring that you manage it in such a way as to limit unnecessary expenses whilst growing money through measures such as budgeting, investing and expenses tracking.

With Mr Peabody's income and other financial constraints, the optimal average level of money will be the most he can maximise from managing his money.

6 0

3 years ago

Lapping is best described as the process of Group of answer choices inflating bank balances by transferring money among differen

Artemon [7]

Lapping is best described as the process of B. applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts.

<h3>What is Lapping?</h3>

Lapping is an employee stealing scheme revolving around the application of cash receipts.

Lapping can be traced by tracing the application of cash receipts to customers' accounts.

Routine application of cash receipts to wrong customer accounts proves evidence of a lapping scheme.

Thus, Lapping is best described as the process of B. applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts.

Learn more about lapping schemes at brainly.com/question/14846195

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3 0

2 years ago

In horizontal analysis the percent change is computed by: Multiple Choice Subtracting the analysis period amount from the base p

GalinKa [24]

Answer:

Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, and then multiplying that amount by 100.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB). It can be defined as the field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time. Financial experts or accountant uses either the cash basis or accrual basis of accounting.

There are two (2) main methods used in financial accounting for analyzing financial statements and these are;

I. Vertical analysis.

II. Horizontal analysis.

Horizontal analysis compares historical financial informations over a number of reporting periods.

In horizontal analysis the percent change is computed by subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, and then multiplying that amount by 100.

3 0

3 years ago

Bond Yields and Rates of Return A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a c

Nookie1986 [14]

Answer:

The bond's yield to maturity is 9.45% using Excel to get exact values, and 9.59% using approximate method.

Explanation:

We can calculate is using 2 ways, using Excel to get the exact percentage or with approximate methods, calculating the semi-annual Yield to Maturity using the following formula

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$

And from there we can calculate the Yield to Maturity just by multiplying the semi-annual one by 2.

Identifying the given information.

We have a period of 30 years, so for the semiannual bond we have $n=2(30) = 60$ periods.

The face value, FV, is $1000, the coupon rate is 0.10, thus we can use them to find the interest per period PMT.

$PMT=0.10 \times \cfrac{1000}{2}\\PMT=\$ 50$

The current price of the bond, PV is $1050.

Replacing the values on the semiannual Yield to Maturity

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$

$YTM_{sm}=\cfrac{50+\cfrac{1000-1050}{60}}{\cfrac{1000+1050}{2}}$

Simplifying we get

$YTM_{sm}=4.797\%\\$

Finding the Yield to Maturity.

We can just multiply by 2 to get the Yield to Maturity from our previous result and rounding it to 2 decimals we get

$YTM = 2 YTM_{sm}\\YTM=9.59\%$

Alternatively we can use Excel and write:

RATE(n, PMT, PV, FV)*2

That is

RATE(60,50,1050,1000)*2

And we will get the exact Yield to maturity 9.49%

3 0

3 years ago

Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,500 C

romanna [79]

Answer:

The return on equity for 2017 is 21.46 %

Explanation:

Return on equity measures the return earned on the owners investment in the company.

Return on equity = Net Income for the year / Total Shareholders Funds × 100

= $822 / ( $2,980 + $850) × 100

= 21.4621 or 21.46 %

Note : That Retained earning is part of Owners Investment.

Conclusion :

The return on equity for 2017 is 21.46 %

6 0

3 years ago