Answer:
A) a reduction of the carrying value of the investment
Explanation:
Under the equity method, the investor company cannot record dividends as revenue, it must record them as a reduction of the carrying value of their investment. Under the equity method, the value of the investment decreases with cash dividends. This transaction involves only a change between assets, investment decreases while cash increases, no additional revenue is recorded.
Answer:
His firm's DPMO is 12,083
Explanation:
The computation of the DPMO is shown below:
= (Total complaints ÷ total number of defects opportunity) × 1 million
where,
Total complaints = Shrinkage complaints + poor quality complaints + wear off complaints + fitting issue complaints
= 22 + 16 + 12 + 8
= 58 customers defects
And, the total number of defects opportunity would be equal to
= Number of t-shirts sold × number of possible complaints
= 1,200 × 4
= 4,800
Now put these values to the above formula
So, the value would be equal to
= (58 ÷ 4,800) × 1,000,000
= 12,083
Answer:
Ensuring products are well below the going market rate.
Quality of products offered.
Efforts to improve the lives of members.
Explanation:
Answer:
1.90%
Explanation:
There is the accordance or connection between nominal and real interest rates. It is basically possible to convert from nominal interest rates to real interest rates. According to the Fisher, there is a equation that's called the Fisher Equation:
Real interest rate ≈ nominal interest rate − inflation rate.
On our example,
Inflation rate in October- 3.33%
Inflation rate in November- 2.90%
Nominal interest rate in October- 4.75%
Nominal interest rate in November- 4.80%
In October,
Real interest rate=4.75%-3.33%=1.42%
In November,
Real interest rate=4.80%-2.90%=1.90%
As a result, we see that there is 1.90% real interest rate in November and the real interest rate has increased 0.48% in November compared to October.
Answer:
Liquidity
Explanation:
Liquidity is the degree to which an asset can be converted to cash. Assets that can easily be converted are described as liquid assets and include stocks and bonds.
Illiquid assets are not easy to sell. These assets may take a long time to sell or may be sold at a much cheaper price than the purchase price in order to make a quick sale. These include real estate, motor vehicles etc.
