Answer:
$12,000
Explanation:
The main difference between cash basis accounting and accrual accounting is that accrual accounting recognizes revenue only after the earning process is completed. On the other hand, cash basis accounting recognizes revenue and expenses when the money is received or paid, regardless of when the service is provided. This is why the US GAAP doesn't allow cash basis accounting.
The IRS allows cash basis accounting for individuals and small businesses that only deal with cash payments, but they must meet certain criteria:
- partnerships or C corporations with less than $5 million in yearly revenue
- sole proprietorships and S corporations with less than $1 million in yearly revenues
- family owned farms
- you provide personal services and 95% of your revenue comes from it
- no publicly traded corporation is allowed
You should always review your credit card statements/reports after being a victim of identity theft, this way it will tell you how much was stolen and how much your bank will need to cover.
The primary concerns when first starting your business are: financing and planning
Investing in human capital make sense both on broad economic and individual scale, because capital consists of anything that can enhance a person's power to perform economically useful work. Human capital is the capital <span>possessed by individuals and groups. like talents, knowledge, experience, wisdom...Possessing this kind of capital will result in individual success but also in broad economic, because with bigger human capital the person is able to achieve better results and to earn more, so at the end the person can spend more. </span>
Answer:
<u>Price</u> risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
<u>Reinvestment</u> risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.
Which type of risk is more relevant to an investor depends on the investor's <u>investment horizon</u>, which is the period of time an investor plans to hold a particular investment.
