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noname [10]
3 years ago
7

7. The local electronics store is offering a promotion "1-year: same as cash," meaning that you can buy a TV now, and wait a yea

r to pay (with no interest). So, if you take home a $1000 TV today, you will owe them $1000 in one year. If your bank is offering 4% interest, what is the true cost of the TV to you today?
Business
1 answer:
ElenaW [278]3 years ago
7 0

Answer:

$961.54

Explanation:

we need to find out the present value of $1,000 in one year:

present value = future value / (1 + interest rate)ⁿ

  • future value = $1,000
  • interest rate = 4%
  • n = 1

present value = $1,000 / (1 + 4%) = $1,000 / 1.04 = $961.54

this is an example of the financial principle of time value of money, i.e. one dollar today is worth more than one dollar tomorrow

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Which of the following is not a disadvantage to inflation targeting?
Irina18 [472]

Answer:

D is the correct option

Explanation:

Enhancement of transparency and reduction of price variability are the two advantages of the inflation targeting. Inflation targeting allows the central bank to maintain low inflation. Low inflation promotes long term growth. Enhanced financial growth and reduction in relative price availability are other benefits of inflation targeting. With inflation-targeting central banks can set long term inflation objectives. Increasing accountability and transparency in monetary policy are other benefits. It also helps to predict inflation maintain price stability

5 0
4 years ago
cost accounting systems are used to: a. accumulate production and period costs and assign them to products or services. b. accum
harina [27]

Cost accounting systems are used to Accumulate period cost and assign them to products or services.

Cost accounting systems are useful in both manufacturing and service industries. This system is used to determine product costs, or the total cost of a product, which includes overhead, materials, and labour. According to a number of variables, including worker hours, machine hours, and other considerations, period costs are given to items.

Cost accounting, according to the Terminology of Cost Accounting, is the process of accounting for costs from the point at which expenditure is spent or committed through the development of its final relationship with cost centres and cost units (England).

<u>The purpose and role of cost accounting</u>

These are the primary goals or duties of cost accounting:

  • ​Determination of costs
  • Estimated costs
  • A breakdown of costs
  • Cost reduction and cost control
  • Decision-making, control, and preparation
  • Pricing fixation for sales
  • Calculating the projected profit or loss for each activity.

Learn more about Cost accounting, here

brainly.com/question/24130824

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5 0
1 year ago
Using accrual accounting, revenue is recorded and reported only a.when cash is received at the time services are rendered b.when
Veseljchak [2.6K]

Answer:

d.when the services are rendered without regard to when cash is received

Explanation:

Accrual based accounting requires that the services should be performed or rendered associated with the revenue when you recognize it. It  does not matter when the cash for the revenue is received. You may received the cash in advance or after some time from you rendering services. As your render the services you can record your revenue.

8 0
4 years ago
The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B. Stock A has a beta of 0.82 and stock B ha
Katen [24]

Explanation:

According to the question , the reward - to - risk ratio for the stock A is lesser than that of the Stock B .

The beta values for both the stock is given as -

Stock A = 0.82

and ,

Stock B = 1.29 ,

From the above information , it can be implied that either stock B is under price or the stock A is overpriced, or both  .

Since ,  in the above case the absolute sense can not be determined and only the judgement can be made .

4 0
4 years ago
1. After multiple rounds of layoffs, a plastics processing plant goes into bankruptcy because it has failed to keep up with tech
Gwar [14]

1. After multiple rounds of layoffs, a plastics processing plant goes into bankruptcy because it has failed to keep up with technological developments in the field. It is called dissolution.

2. Crisis is a multinational conglomerate facing a turbulent environment embarks on a cost-cutting campaign instead of spinning off companies and divisions that are no longer in line with the company’s core competencies.

3. Blinded is a college president doesn’t recognize that the availability of free online education is going to dramatically reduce the number of people who are willing to pay for a college degree.

Explanation:

Dissolution is the final phase of liquidation, the closure of a company, and the transfer of the property and assets of the company. Relationship breakup is the first of two phases of relationship termination.

For example, marriage breakdown. It is the last winding-up process of corporate law.

There are several types of circumstances where disaster conditions can be considered. Which include: social disturbance or interruption of the family, as stated at the outset of the lesson. Natural hazards -floods, tornados, storm events, explosions and other natural phenomena incident.

8 0
3 years ago
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