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3 years ago

Which of the following statements is CORRECT?

Business

1 answer:

Advocard [28]3 years ago

8 0

Answer: Option B

Explanation: In simple words, capital market is that market in which securities that are long term in nature are sold and purchased. The maturity period of such securities is generally more than one year.

These, markets transact all types of securities whether it is equity or debt, but it has to be long term in nature.

Hence, from the above we can conclude that the right answer is Option B.

You might be interested in

. A fall in the value of the US dollar against other currencies makes US final goods and services cheaper to foreigners even tho

SpyIntel [72]

Answer:

The partner who insist in the rightward shift

Explanation:

The aggregate demand curve is on a plot with aggregate US output on the X axis and the US aggregateprice level on the Y axis. If you want to know what happens to output demanded in response to changes in the US aggregate pricelevel, you shift ALONG the demand curve. If anything else, except the US aggregate price level changes, you're shifting the entire curve. For example, if interest rates fall, that increasesinvestment and shifts the curve to the right.

Note that, while foreigners are indeed responding to a lowerprice, the lower price in question is in the price the foreign nationals are paying, not the US prices.

5 0

3 years ago

Faust Company uses the perpetual inventory system. Faust sold goods that cost $2,300 for $3,600. The sale was made on account. W

mario62 [17]

Answer:

increase total assets by $1,300.

Explanation:

The net effect is shown below

The first entry is

Cost of goods sold Dr $2,300

To Merchandise Inventory $2,300

(Being the cost of inventory is recorded)

Now the second entry is

Account receivable Dr 3,600

To Sales revenue 3,600

(Being the sales is recorded)

Now the net effect is

= 3,600 - 2,300

= 1,300

This 1,300 reflect the increase in the total assets

4 0

3 years ago

Which of the following transactions are included in gross domestic product, and by how much does the GDP raise?

seropon [69]

Answer:

A. Smith pays a carpenter $50,000 to build a garage. ⇒ INCLUDED, increases GDP by $50,000 because Smith paid for the garage.

B. Smith purchases $10,000 worth of materials and builds a garage, which is worth $50,000. ⇒ INCLUDED, increases GDP by $10,000 only because Smith built the garage himself.

C. Smith goes to the woods, cut down a tree, and uses the wood to build himself a garage that is worth $50,000. ⇒ NOT INCLUDED, no services or goods were exchanged, it is the same as growing your own food.

D. The Jones family sells its old house to the Reynolds family for $400,000. The Joneses then buy a newly constructed house from a builder for $500,000. ⇒ INCLUDED, increases GDP by $500,000 because the Joneses purchased anew house.

E. You purchase a used computer from a friend for $200. ⇒ NOT INCLUDED, only new goods and services are included.

F. Your university purchases a new mainframe computer from IBM, paying $25,000. ⇒ INCLUDED, increases GDP by $25,000 because the university purchased a new computer.

G. You win $100 in an Atlantic City casino. ⇒ NOT INCLUDED, casino earnings or lottery earnings are not considered new products or services.

5 0

3 years ago

Muddy’s Bakery and Lilly’s Sweetshop both sell cupcakes. The market price of one chocolate cupcake is $2.50. Muddy’s is willing

Minchanka [31]

Answer:

$1.6

Explanation:

Muddy´s: $2.5-$1.65=0.85

Lilly´s_ $2.5-$1.75=0.75

0.85+0.75=1.6

6 0

4 years ago

company purchased 200 units for $40 each on January 31. It purchased 115 units for $50 each on February 28. It sold 175 units fo

ziro4ka [17]

Answer:

$8150

Explanation:

As the perpetual inventory system used for determining the Cost of Goods Sold is LIFO (lastminus-in, firstminus-out), we should consider that the first goods sold are the ones purchased last. So, from the total of 175 units sold, 115 are the ones purchased later (at a $50 cost) and 60 belong to the units purchased first (at $40 cost).

So to determine the total Cost of Goods Sold is 50*115+60*40= $8150

5 0

3 years ago