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Dafna11 [192]
3 years ago
5

Why competition in the marketplace good for the economy

Business
1 answer:
kumpel [21]3 years ago
5 0

<h3>Competition has a positive impact, not only on the well-being of consumers, but also on a country's economy as a whole.Competition bolsters the productivity and international competitiveness of the business sector and promotes dynamic markets and economic growth.</h3>
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Diminishing marginal utility of wealth implies that the utility function. Group of answer choices
yan [13]

Answer:

c. has decreasing slope and a person is risk averse.

Explanation:

The marignal utility of wealth represent that the subsequent utility of the person wealth is not perceived as necessary/joyful as the previous one.

This makes the slope of the utility function to go upward but at slower grow.

The first units of wealth produce a great improvement in utlity compared with the followings just like in any other good or service provided in the economy.

7 0
2 years ago
Your client, Cascade Company, is planning to invest some of its excess cash in 5-year revenue bonds issued by the county and in
muminat

Answer:

Memorandum

Date 27th March'2017

To: Cascade Company

Subject: Re: Accounting treatment for the investments based on FASB Codification research

Purpose

This memorandum addresses the investment concern of Cascade Company in Teton Co. about accounting treatment based on FASB Codification research

Details

Query- 1). Since the Teton shares do not trade on one of the large stock markets; Cascade argues that the fair value of this investment is not readily available. According to the authoritative literature, when is the fair value of a security “readily determinable”?

Query- 2). How is an impairment of a security accounted for?

Query- 3). To avoid volatility in their financial statements due to fair value adjustments, Cascade debated whether the bond investment could be classified as held-to-maturity; Cascade is pretty sure it will hold the bonds for 5 years. How close to maturity could Cascade sell an investment and still classify it as held-to-maturity?

Query- 4). What disclosures must be made for any sale or transfer from securities classified as held-to-maturity?

Issue:

1) To determine accurately the fair value of the security of a given firm or Company, the necessary three conditions to be met are:  

  • The fair value per share, in another word known as a unit must be indomitable and in print.  
  • At this point, the unit qualifies to be the basis for current transactions.  
  • In an event the fair market value of an equity security is determined then the sales price can be easily reached on a securities exchange which is registered with the United States Securities and Exchange Commission.
  • The sales price also can made be available in the over the counter markets. The last condition relates in foreign market situations exclusively. The overseas market should be analogous in width and extent to the American markets pursuant to (FASB, ASC 320-10-20).

2) The impairment of a security is accounted for by evaluation of the impairment test to the level of loss in value showing exterior the temporary measures. The company is allowed to take stepladder to recognize and account for securities grouped as either available for sale or held to maturity by making an assessment of whether a decline in fair value down the amortized cost basis is other than temporary. Providing a general allowance for anonymous impairment in securities portfolio in an inappropriate way (FASB, ASC 320-10-35-18). Additionally, amortized initial outlay exceeds the fair value of a project or investment at the date of balance sheet reporting period for which the respective impairment is assessed, the impairment is either other than temporary or temporary”(FASB, ASC 320-10-35-30).

3) To classify a bond as a held to maturity investment, the company must have the affirmative intent and capability to hold respective securities to maturity (FASB, ASC 320-10-25-1). In case the bonds were sold as a five-year term, it would be satisfactory to categorize the asset as held-to-maturity. It depends upon standard to sell a held-to-maturity security early. The sale of a held-to-maturity security must be in rejoinder to an actual decline, not mere conjecture, to the credit worthiness of the issuer pursuant to as according to (FASB, ASC 320-10-25-5(d)). Cascade can only sell the security based on the standards adjoining held-to-maturity categories if following conditions are met:

  • The security sale appears near adequate to its maturity time (or call period if exercise of the call is plausible) that risk on interest rate is significantly removed as a pricing factor, or  
  • The sale of a security appears after the firm has already unruffled a considerable portion of the principal outstanding at acquisition due either to scheduled payments on a debt security payable in equal installments or to prepayments on the debt security (it would include both principal and interest) over its term period (FASB, ASC 320-10-25-14).

4) The entities must disclose the following for either the sale or transfer from securities classified as held-to-maturity:

  • The net carrying amount of the security transferred or sold.
  • The aggregate amount of net gain or loss that is accumulated in other comprehensive income for derivatives which is hedged the predetermined acquisition of the security held-to-maturity.
  • The correlated amount realized or unrealized loss or gain
  • The state of affairs leading to the decision to sell or transfer the security. (These transfers or sales should be rare on exceptions for transfers or sales due to the changes in conditions in accordance to paragraph 320-10-25-6(a) through (f))” (FASB, ASC 320-10-50-10).

8 0
2 years ago
I am so coufued "what i am going to in future, i am very good in art and math and cooking and pe?
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Answer:

you can be a artist or chef

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Alexandra [31]
Juan should call Violet and discuss the issue with her. The two of them should reach an agreement on how they will be taking care of the office on a daily basis. Each of them should be responsible for cleaning and organizing the office daily. In case the two of them are always too busy to clean up, then, they can employ a cleaner, who will be cleaning for them daily and the two of them will contribute to pay the cleaner.
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2 years ago
Compared with a career , a job ?
Margaret [11]
A job is just a short term thing to get cash and build up experience . a career is a long term pursuit of lifelong ambition . a career you enjoy the rest of your life
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3 years ago
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