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Ray Of Light [21]
3 years ago
12

What is the double entry system?​

Business
2 answers:
Vikki [24]3 years ago
5 0

Answer: Double-entry bookkeeping, in accounting, is a system of book keeping where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry system has two equal and corresponding sides known as debit and credit. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the accounting equation,

Aliun [14]3 years ago
5 0
Double-entry bookkeeping, in accounting, is a system of book keeping where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry system has two equal and corresponding sides known as debit and credit. The left-hand side is debit and the right-hand side is credit. In a normally debited account, such as an asset account or an expense account, a debit increases the total quantity of money or financial value, and a credit decreases the amount or value. On the other hand, for an account that is normally credited, such as a liability account or a revenue account, credits increase the account's value and debits decrease that value
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7. GH Company has $5000 of debt and $20,000 of equity. GH pays 5% interest on all of its debt. GH has an equity beta of 2. The m
Artyom0805 [142]

Answer:

WJK's Unlevered Beta = 1.7

 Expected rate of return = 13%

Financial leverage = 0.25

Explanation:

given data

debt = $5000

equity = $20,000

interest = 5%

equity beta  = 2

market risk premium = 5.5%

risk free rate of return = 2%

marginal tax rate = 30%

solution

we find here Unlevered Beta that is

Unlevered Beta = \frac{Beta (Levered)}{{1 + [ (1- tax rate)* (\frac{Debt}{Equity})]}}    ...........................1

as that we can say  

WJK's Unlevered Beta = \frac{Beta of GH (Levered)}{{1 + [ (1- tax rate)* (\frac{Debt of GH}{Equity of GH})]}}

put here value we get

WJK's Unlevered Beta = \frac{2}{{1 + [ (1- 0.3)* (\frac{5000}{20000})]}}

WJK's Unlevered Beta = \frac{2}{1.18}

WJK's Unlevered Beta = 1.7

and

Expected rate of return on equity of GH using CAPM = Risk free rate + Beta of GH ×  (Market risk premium)

Expected rate of return =  2% + 2 × (5.5%)

 Expected rate of return = 13%

and

Financial leverage will be here

Financial leverage = \frac{Debt}{Equity
}

Financial leverage = \frac{5000}{20000
}

Financial leverage = 0.25

5 0
4 years ago
Which of the following is an example of a company that serves a niche market?
Natasha_Volkova [10]

Answer:

C) a manufacturer who creates tools such as bolts, latches, door handles etc. for left-handed individuals

Explanation:

A niche market is a segment of a market that has a specific target group of consumers, usually due to a highly specific need or interest of those people. On the contrary, mainstream providers cater to the needs of the mass market, a customer base that is not specific and is largely diverse.

Therefore, large-scale manufacturers that have a large range of standardized products are <u>not</u> considered as niche.

In this example, the company producing miscellaneous things tailored for left-handed individuals is highly niche by nature.

3 0
4 years ago
When employees are unclear about work methods, scheduling, and performance criteria because others hold different ideas about th
atroni [7]

Answer:

true

Explanation:

In a workplace, role ambiguity happens when employees are not certain about what their job related roles or tasks are. They might be confused or uncertain about what is expected from them or what should they be doing. Sometimes this uncertainty involves different types of job related aspects, like behavior expectations or workplace relationships.

Obviously uncertainty is never good, because it increases stress levels, specially to new workers, but can also lower productivity of current workers that have been assigned new functions or tasks. The person in charge of stating and making things clear is the supervisor or manager, since it is normal that different opinions and views within the employees just makes things more confusing.

6 0
4 years ago
In order to reduce ____________, consumers can rationalize their purchase decision as being wise, seek out advertisements that s
mash [69]

Answer:

The blank space contain the words "Post purchase dissonance"

Explanation:

Post Purchase Dissonance can be referred to as when the customer’s state of the mind and perception is in doubt after purchasing the product or service offered by a brand. This results in the customer either regretting the brand or in returning the product back from where he purchased.

8 0
4 years ago
Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Yuliya22 [10]
Here is the correct order of investments from Lower Risk to Higher Risk: <span> Treasury bond − Diversified mutual fund – Stock

Treasury bond is released by Government, so unless your country went bankrupt, it is safe to assume that you will get the investment back.

Diversified mutual fund puts your eggs in a lot of baskets So in case one of your investment fail, the others could still support your overall investments

Since the stock is a single entity and really fluctuative, it is considered as the most dangerous type of investment.

</span>
3 0
4 years ago
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