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3 years ago

Which of the following statements is true regarding the Unrealized Loss on Investments account

Business

1 answer:

max2010maxim [7]3 years ago

8 0

Answer:

B) It is reported on the income statement when it pertains to short term investments

Explanation:

Unrealised loss is defined as a reduction in the value of an asset that is held by an investor rather than selling it and realising a loss.

Unrealised loss is also called paper loss. This loss is not realised until the asset is sold.

Unrealised losses are not usually recorded on the income statement unless they intend to be sold in a short time.

When a security is to be sold in the short run it is called a trading security. Trading securities are represented in the income statement as they can increase or reduce income

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The three steps to follow when organizing your notes to create a study guide are

valina [46]

The three steps to follow when organizing your notes to create a study guide are c<span>omparing notes, rewriting notes, synthesizing notes.
First of all, the best thing would be to take all of your notes (and perhaps those from your colleagues) and compare them to see if you missed something. Then, it is advisable to rewrite them so that everything is neat and organized, and easier to study from there. In the end, you synthesize all notes you and your colleagues wrote to create the ultimate notes.
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5 0

3 years ago

Read 2 more answers

8000 x .05 a bank has excess reserves of $5,000 and demand deposits of $40,000; the reserve requirement is 20%. if the reserve r

Yanka [14]

With an increase in the reserve requirement, the maximum amount of new loans that this bank can make is $2,000. Hence, Option B is correct.

<h3>What is the reserve requirement?</h3>

The amount that is required by a commercial bank to reserve from deposits in order to guarantee that there is always enough liquidity to meet customer withdrawals is known as the reserve requirement.

It refers to the portion of deposits that commercial banks are prohibited from lending against. In the given case, the amount of new loans that a bank can make is computed as follows:

The required reserve is given as follows:

Initial Required Reserve = 20% ∗ $40,000

Initial Required Reserve =$8,000

Now, when the required reserve increases to 25%, then the new required reserve is expressed as

New Required Reserve=25%∗$40,000

New Required Reserve=$10,000

Thus, the maximum amount that can now be given as loans is as follows:

Maximum Loan amount=$10,000−$8,000

Maximum Loan amount=$2,000

Thus, Option B is correct.

Learn more about the reserve requirement from here:

brainly.com/question/15966594

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The complete question is attache in text form:

A bank has excess reserves of $5,000 and demand deposits of $40,000; the reserve requirement is 20%. If the reserve requirement is increased to 25%, the maximum amount of new loans this bank can make is:

a. $1,500.

b. $2,000.

c. $2,500.

d. $3,000.

6 0

2 years ago

Which contingency of power are unions mainly applying by going on strike at a critical time in the company's business cycle

Ksivusya [100]

Answer:

Centrality

Explanation:

By going on strike at a critical time in business cycle the contingency of power is centrality. Centrality is the degree and nature of power of interdependence that exists between between the the person holding power and others. Centrality determines the number of people who are affected by the decisions made by the person holding power.

5 0

3 years ago

Which of these statements is true?

olasank [31]

Answer:

Compound interest will lead to a larger sum of money than a comparable simple interest payment.

Explanation:

The true statement is that compound interest will lead to a larger sum of money than a comparable simple interest payment because the interest are compounded for a certain number of times such as daily, weekly, quarterly or annually while simple interest isn't compounded at all.

To find the future value, we use the compound interest formula;

$A = P(1 + \frac{r}{n})^{nt}$

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

Mathematically, simple interest is calculated using this formula;

$S.I = \frac {PRT}{100}$

Where;

S.I is simple interest.

P is the principal.

R is the interest rate.

T is the time.

6 0

3 years ago

How do people become successful as a real estate developer?

Roman55 [17]

Hello there!

A real estate developer job is to get houses to sell them, get land to build houses and sell them, and get previous owned houses and sell them. They pretty much get property and sell it. As a real estate developer, the main goal that someone should have is to <u>make more money than they paid for the property</u>. This means that they would need to be making profit in order to really see a progress in income.

Let's give you an example when a real estate developer buys a house:

Johan, a real estate developer, bought a house $275,000. He then goes on a website and advertises the house for $285,000.

What Johan is trying to do here is make profit form the house he just purchased, since the extra money he will be getting if the house is sold will be a surplus to the original amount.

Let's give you an example when a real estate developer buys land:

Susan buys 1 acre of land for $1.2 million, she then has a construction crew build a house, and that costed her $750,000.

At the end of the day, Susan spent $1.95 million (1,950,000) on the house in total.

She then sells the house on a website for $2.5 million (2,500,000).

This means that Susan made a surplus of $550,000 from the price she originally payed for.

It's best when a real estate developer sells property for more than what they payed for, so they would be making profit (extra money). It's bad when a real estate developer tries to sell a house for lower than they originally payed for, then they would be losing money. That's why when there is a specific price for a house, a real estate developer usually doesn't want to drop the price of the house any cheaper; they want to stick with their price so they could make money.

A real estate developer could also start their own company, and make more profit if they stick to the trick of selling the property for more than what they paid for. If they stick to the trick, then they would be making even more money since they would have multiple people in a company doing it all at once, in different places too.

4 0

3 years ago