Answer:
True
Explanation:
When we apply the expectations theory, we assume that there is no risk premium associated to the securities (this theory applies to government securities). If the yield curve is upward sloping (positive slope), it means that the short term yields are expected to increase. The time value of money applies to all securities, including government securities, i.e. $1 today is worth more than $1 tomorrow.
Answer:
In other words,this redemption transaction results in $60000 charge to e&p and $85000 reduction of Caramel's paid capital account
Explanation:
E&P in relation to redemption is =total e&p/total shares*shares redeemed
E&P in relation to redemption is =$300000/5000shares*1000shares
E&P in relation to redemption is =$60000
The reduction in Caramel's paid-in-capital is $85000 ($145000-$60000)
Improvents in a rental property often won't increase rents. Also improvements could be damaged if the property continoues as rental which means the updates lose value.
Given:
Current ratio: 2.65
acid test ratio: 2.01
current liabilities: $45,000
Current ratio = current asset / current liabilities
2.65 = current assets / 45,000
2.65 * 45,000 = current assets
119,250 = current assets
Acid test ratio = (current assets - stocks) / current liabilities
2.01 = (current assets - stocks) / 45,000
2.01 * 45,000 = current assets - stocks
90,450 = current assets - stocks
119,250 - 90,450 = 28,800 is the dollar amount of merchandise inventory.