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Nataliya [291]
2 years ago
13

Define a stock market bubble, explain what causes a bubble, and describe what happens after a bubble

Business
1 answer:
Brilliant_brown [7]2 years ago
8 0

Stock market bubble means the increase in price of the shares traded and which falls after a point.

<u>Explanation:</u>

The bubble in the stock market is caused by the quick rise in the price in a very small period of time. The price starts falling which will be a stock market bubble burst after a significant rise in price to a value below the starting price.

The bubble takes place when the investors overestimate the share or misjudge the future of that industry. Stock market bubble affects the entire share markets or any one particular industry.

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Which of the following is the path through which contractionary monetary policy works? A. Money down implies interest rate up im
Ede4ka [16]

Answer and Explanation:

B. Money down implies interest rate down implies investment down implies income down.

8 0
3 years ago
Which of the following would cause a "Prior Period Adjustment" to be reported on the 2025 Statement of Retained Earnings?
Fynjy0 [20]

Answer:

Cause of a "Prior Period Adjustment in 2025 Statement of Retained Earnings:"

A. Failure to Accrue Revenue at 12/31/24, but not 12/31/21 Depreciation Overstatement.

Explanation:

A company's failure to accrue revenue in accordance with the accrual concept and revenue recognition principle means that there is a "Prior Period Error" which must be corrected retrospectively in the financial statements (Retained Earnings).  Retrospective restatement involves the correction of the error arising from the recognition, measurement, and disclosure of amounts of elements of financial statements.  The restatement is done as if a prior period error had never occurred.

5 0
3 years ago
Copperhead Trust has the following classes of​ stock: LOADING...​(Click the icon to view the​ data.) Read the requirementsLOADIN
sergeinik [125]

Answer:

Find attached complete question:

common stock dividends is $38,960

preferred stock dividends is $5,040

Explanation:

Going by the complete question,preferred stock dividends is computed thus:

preferred stock dividends=number of shares*par value*dividend rate

number of shares is 7000 (issued and outstanding)

par value of share is $12

dividend rate is 6%

preferred stock dividend=7000*$12*6%=$5040

The preferred stockholders would receive $5040 dividends while the remainder of dividends goes to common stockholders as shown below

Total dividends                              $44,000

preferred stock dividends             ($5040)

common stock dividends              $38,960

Download xlsx
6 0
2 years ago
Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows:
stiv31 [10]

Answer:

a) Determination of the amount of the amortization, depletion, or impairment for the current year for each item:

   Item                 Impairment   Amortization    Depletion

                             Expense         Expense          Expense

a. Timber rights                                                  $304,000

b. Goodwill        $ 1,110,000

c. Patent                                     $456,000

b) Adjusting Journal Entries:

Date       Account Titles                                   Debit         Credit

Dec. 31   Depletion Expense -Timber rights  $304,000

              Accumulated Depreciation - Timber rights     $304,000

To record the depletion expense for Timber rights.

Dec. 31   Goodwill Impairment Loss             $1,110,000

              Accumulated Goodwill Impairment                $1,110,000

To record the impairment loss for Goodwill

Dec. 31   Amortization Expense - Patent     $456,000

              Accumulated Amortization - Patent                 $456,000

To record the amortization expense for Patent.

Explanation:

a) Data and Calculations:

February 22, Purchase of Timber rights $1,140,000

Estimated stand of timber = 6,000,000

Used board feet of timber = 1,600,000

Units of product Depletion

= $1,140,000/6,000,000 * 1,600,000

= $304,000

December 31, Goodwill impairment

= $1,110,000

April 3 Patent:

Cost incurred $9,120,000

Amortization per annum = $608,000 ($9,120,000/15)

Amortization for the current year = $456,000 ($608,000 * 3/4)

8 0
2 years ago
After purchasing a coffee cup from your local gas station for $5.00, you can always refill your cup for $0.50. The sunk cost of
Law Incorporation [45]

Answer:

$4.50

Explanation:

The sunk cost is the cost that has been incurred and is unrecoverable in the process of taking a financing decision.

If the cost of a coffee cup from a local gas station cost $5.00 and the cost of refill is $0.50, the coffee is the actual element needed and from the refill, it can be estimated that it costs $0.50.

Hence the sunk or unrecoverable cost is the difference between the coffee cup and the refill cost

= $5.00 - $0.50

= $4.50

3 0
2 years ago
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