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Digiron [165]
3 years ago
5

Suppose that the required reserve ratio is 8.00 %. What is the simple money (deposit) multiplier?

Business
1 answer:
77julia77 [94]3 years ago
8 0

Answer:

12.5

Explanation:

Money multiplier gives the maximum amount money supply can increase to given the reserve ratio

Money multiplier = 1 / r = 1 / 0.08 = 12.5

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Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be repor
Mazyrski [523]

Answer:

The answer is E. In financing activities as a use of funds.

Explanation:

In cash flow, to be a source of fund means there is cash inflow i.e cash is coming in to the business and to be a use of fund means there is cash outflow i.e cash is going out of the business the business.

Also in cash flow, we have three sections - operation, investing and financing sections.

For cash flow from operating activities, use of fund or source of fund about how a business carries its normal activities are important here.

Cash flow from investing activities is about long term Investment the company is engaging on e.g sale or Purchase of machinery.

Cash flow from financing activities is about how the company is funding the business or how the firm is repaying its shareholders for using their fund e.g payment of dividends(use of fund i.e cash outflow)

4 0
3 years ago
A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's cur
nata0808 [166]

Answer:

$200 (a deduction)

Explanation:

The accounting standard for inventories IAS 2 requires that inventory be carried at the lower of cost or net realizable value. Inventory will initially be recognized at the cost ( which includes the cost of the item and other associated cost such as freight ). However, its carrying amount must be reviewed to ensure it is not higher than the realizable value.

Given that the selling price is now $15 which is lower than the cost of $16, it means that the amount that can be realized from the sale of a unit is $15.

= $16 - $15

= $1

As such, an adjustment in form of a reduction of the carrying amount of $1 per unit is required. The amount of the lower cost of market adjustment the company must make as a result of this decline in value

= $1 × 200 units

= $200 (a deduction)

8 0
2 years ago
If a material event is either unusual in nature or an infrequent occurrence—such as a one-time charge resulting from a major res
PtichkaEL [24]

Answer:

False

Explanation:

7 0
3 years ago
Operating Costs
posledela

Operating Costs

3.Cost of actually running a business

This is a clear indication of the company's resource usage productivity.

Accounts Payable

6.Amounts of money the company owes to other companies for products

as this affect the overall short term debt, if this is lower, the better for the company.

Cash Flow

4.The movement of money in or out of a business

having a positive cash flow is good for investment and capital expenditures.

Startup Costs

2.Cost of starting up a business until it can pay for itself

these costs are most of the time unavoidable.

Gross Profit

5.Total Revenue - Cost of Goods Sold

Angel Investor

1.An investor who provides money to a business in exchange for debt or equity

however, the risk is that you might end up giving a significant controlling stake of the company to the investor.

3 0
3 years ago
A business issued a 90-day, 9% note for $70,000 to a creditor on account. Illustrate the effects on the accounts and financial s
SSSSS [86.1K]

Answer:

The computation is shown below:

Explanation:

The journal entries are shown below:

a. Account payable $70,000

           To Notes payable $70,000

(Being the issuance of the note is recorded)

b. Note payable $70,000

  Interest expense $1,575

              To Cash $71,575

(Being the payment of the note at maturity date including interest is recorded)

The computation is shown below:

= $70,000 × 9% × 90 days ÷ 360 days

= $1,575

We assume 360 days in a year

Now the effects on the accounts and the financing statement for issuance of the note is shown below:

Balance sheet

Assets          =   Liabilities   + Stockholder equity    Income statement  cash flow statement

No effect = Account payable - $52,000 + No effect  No effect + no effect

                   Note payable + $52,000      

7 0
3 years ago
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