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3 years ago

In the trial balance, all the accounts with debit balances are listed before the accounts with credit balances.

Business

1 answer:

Jet001 [13]3 years ago

3 0

Answer:

False

Explanation:

The trial balance is prepared at the end of a counting period after all the accounts have been closed. The trial balance captures all the debits on one side and credits on the other. If the trial balance does not balance, it signifies errors in the general ledger. A balanced trial balance does not guarantee the absence of errors.

In preparing a trial balance, accountants usually follow the order of accounts as they follow each other as per the general ledger. It is not a requirement that either debits or credits come first.

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Suppose there is a decrease in the price of butter. What do we expect to happen to the demand for bread? Assume that bread and b

dimulka [17.4K]

Suppose there is a decrease in the price of butter.There will be an increase in demand for bread.

<h3>Option (B) is correct</h3>

<u>Explanation:</u>

Bread and butter are complementary goods. They are demanded and consumed together. So their demand are positively correlated which means an increase in demand of one will lead to the same increase the demand of other

If the Price of butter decreases, it will lead to an increase in the demand for butter. With the increasing demand for butter, the demand for bread will automatically increase. Both demands will move in the same direction.

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3 years ago

a(n) blank market is created when a customs union lifts restrictions on the mobility of services, labor, and capital among membe

Deffense [45]

A common market is created when a customs union lifts restrictions on the mobility of services, labor, and capital among member nations.

<h3>Why was the common market formed?</h3>

Through the removal of the majority of trade barriers and the development of a unified external trade strategy, the EEC was created with the goal of establishing a common market among its members. In order to shield EEC farmers against agricultural imports, the treaty also called for the creation of a unified agricultural policy, which was implemented in 1962.

A free trade zone with a reasonably unrestricted circulation of goods and services is referred to as a common market. When it was a regional organization from 1958 to 1993, the European Economic Community was known as the "Common Market."

In a customs union, all or almost all of a country's imports, exports, and transiting commodities are subject to the same set of processes, regulations, and tariffs. Customs union participants typically have similar trade and competition laws.

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1 year ago

Fleury Security Limited (FSL) is projected to have earnings per share (EPS) of $3.50 next year, and the firm’s dividends are 30%

ra1l [238]

Answer and Explanation:

The computation is shown below:

a) For ROE of the company

As we know that

Debt ratio = 1 - (1 ÷ Equity multiplier)

0.4 = 1 - (1 ÷ Equity multiplier)

(1 ÷ Equity multiplier) = 0.6

Equity multiplier = 1 ÷ 0.6

= 1.6667

Now ROE is

ROE = Net Profit Margin × Total Asset Turnover × Equity multiplier

= 10% × 0.9 × 1.6667

= 15%

b) For the Price of FSL shares

Expected Dividend next year (D1) = Projected EPS × Dividend payout ratio

= $3.50 × 30%

= $1.05

And, Required Return(ke) = 12.4%

Growth Rate(g) = ROE × (1 - Dividend payout ratio)

= 15% × (1 - 0.30)

= 10.5%

And finally the Price of STock:-

= D1 ÷ (ke - g)

= $1.05 ÷ (0.124 - 0.105)

= $55.26

C. For Present Value of Growth Opportunity(PVGO)

As we know that

Present Value of Growth Opportunity(PVGO) = Stock Price - (EPS ÷ Ke)

= $55.26 - ($3.50 ÷ 12.4%)

= $27.03

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Anton [14]

Answer: answser

Explanation:

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kodGreya [7K]

Answer and Explanation:

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