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marusya05 [52]
3 years ago
11

Which component of owners’ equity does the situation below indicate? Owners’ equity includes , ______ which is the amount of pro

fits that your business has been able to save over the past few years.
Business
1 answer:
Gemiola [76]3 years ago
8 0

Answer:

Retained earning

Explanation:

A company's profits are distributed to shareholders as dividends, retained in the business for reinvestment, or both. Therefore, retained earning are profits that were not distributed to shareholders. They are funds that belong to owners but withheld for use in the business.

Retained earnings form part of a company's capital. It is money that shareholders have contributed to the business by not sharing in profits.

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Olin [163]

Answer:

Type A is 7%, type b is 11%

Explanation:

We have these two firm's as type a and type b

For type A

Interest would be = risk Free rate of 2% + risk free rate of 5% = 7%

For type B

= Risk free rate of 5% + risk free rate of 6% = 11%

I would use the average of this two 9% as interest but this is not going to work for type A because this interest rate is too high. People won't want to pay this much.

8 0
2 years ago
Inventory at the end of the year is overstated. Which of the following statements correctly states the effect of the error? a. n
vlabodo [156]

Answer:

The answer is stockholders' equity is overstated

Explanation:

When inventories are overstated it reduces the cost of sales because the excess inventory in accounting records means the ending inventory will be higher and cost of sales will be lower.

When ending inventory is overstated, total assets and retained earnings will be overstated. And when retained earnings is overstated, stockholders' equity is also overstated because retained earnings is a line item under stockholders' equity.

7 0
3 years ago
The buyers of a good will want to purchase it as long as their willingness to pay for the good is
Anna71 [15]
If it is greater than or equal to the price.
hope this helps
6 0
3 years ago
The concept of market conduct includes such things as ____.
lbvjy [14]

The concept of market conduct includes such things like profit , loss and assest growth targets.

Explanation:

Market conduct is used in insurance industry to describe the problems that are related to the sale and distribution of insurance. It deals with the pricing and promotion strategies based on the players in the market related to their aim , objective and desicion making process.

Based on this concept all consumers are seen as potential customers with similar needs. They have proper regulations to check the customers are charged fair and reasonable insurance prices.

They will also ensure whether the consumers have access to beneficial and compliant insurance products.

3 0
3 years ago
Your company introduced a new product one month ago. Since then, the Website has processed so many orders that the shipping and
blondinia [14]

Answer: The web team can create a FAQ page.

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This will greatly help the company reduce questions directed to sales team, as customers can easily find answer to their questions in the FAQ page

3 0
3 years ago
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