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3 years ago

Is it reasonable to assume that treasury bonds will provide higher returns in recessions than in booms?

2 answers:

8 0

It is indeed reasonable.We know this because interest rates rise when the economy is booming and fall when the economy goes into a recession which is known as procyclic movement. What happens is that during recessions the government usually tries to keepcinterest rates low in order to stimulate investment. It is good because bond prices <span>and interest rates go in opposite directions so bond prices will rise when recession starts. </span>

Alekssandra [29.7K]3 years ago

8 0

Yes because a treasury bond is backed by the government

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10. The overall levels of income, employment, and prices are determined by the spending and production decisions

meriva

Explanation:

option C. Government

hope Its useful for you

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3 years ago

Read 2 more answers

Brief Exercise 4-1 Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of t

snow_tiger [21]

Answer:

Explanation:

a. In this transaction, the cash balance is reduced by ($120) and no impact on the net income as the purchase is made so there is an outflow of cash

b. In this transaction, the cash balance has no impact and the net income balance is reduced by ($30) as it is treated as an expense

c. In this transaction, the cash balance has no impact and the net income balance is increased by $1,400 as the revenue is made

d. In this transaction, the cash balance is increased by $750 and no impact on the net income as there is an inflow of cash

e. In this transaction, the cash balance is reduced by ($2,900) and no impact on the net income as there is an outflow of cash

f. In this transaction, the cash balance has no impact and the net income balance is decreased by ($580) as depreciation is a non-cash expense

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3 years ago

To raise external funding, many publicly owned corporations decide to sell additional shares of the company’s stock in the prima

Anika [276]

Answer:

initial public offering

Explanation:

Initial public offering is also known as IPO it alludes to the first run through an organization freely sells portions of its stock on the open market.

It alludes to the way toward offering portions of a private enterprise to general society in another stock issuance. Open offer issuance permits an organization to raise capital from open financial specialists.

They will likewise pick a trade wherein the offers will be given and consequently exchanged freely.

6 0

3 years ago

Hawaiian Specialty Foods purchased equipment for $12,000. Residual value at the end of an estimated four-year service life is ex

Vedmedyk [2.9K]

Answer:

1. $2,700

2. $6,000

3. $1,836

Explanation:

The computation of the depreciation expense for the first year is shown below:

1) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

= ($12,000 - $1,200) ÷ (4 years)

= ($10,800) ÷ (4 years)

= $2,700

In this method, the depreciation is same for all the remaining useful life

2) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 4

= 25%

Now the rate is double So, 50%

In year 1, the original cost is $12,000, so the depreciation is $6,000 after applying the 50% depreciation rate

3) Units-of-production method:

= (Original cost - residual value) ÷ (estimated machine hours)

= ($12,000 - $1,200) ÷ ($10,000 hours)

= ($10,800) ÷ ($10,000 hours)

= $1.08 per hour

Now for the first year, it would be

= Machine hours in first year × depreciation per hour

= 1,700 machine hours × $1.08

= $1,836

3 0

3 years ago

Davis hardware company uses a perpetual inventory system. how should davis record the sale of merchandise, costing $770, and sol

slega [8]

The required entries are as follows:

Dr. Cost of goods sold $770

Cr. Inventory $770

Dr. Accounts receivable $1,260

Cr. Sales revenue $1,260

What entries are required for sale of merchandise?

When merchandise is sold, the company's inventory reduces and cost of goods sold increases ,hence, the appropriate entries are to debit cost of goods sold in the income statement and credit the inventory account in the balance sheet.

Also, to account for sale on account, which means credit sales, the revenue account is credited with the sales value whereas the account receivables which represents claim from the customer is debited, this would happen for every transaction because the inventory system is perpetual.

Find out more about merchandise on:brainly.com/question/13720527

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2 years ago