Answer:
1. Dividends = Dividends, it decreases stockholder's equity.
2. Rent Revenue = Revenue, it increases stockholder's equity
3. Advertising Expense = Expense, it decreases stockholder's equity
4. Stockholder's pay cash into business = Issuance of stock, increases stockholder's equity.
Explanation:
Notes to above:
1. Dividends are paid from current year income or from retained earnings, as both current year earnings and retained earnings are clubbed into equity thus, with payment of dividend, equity is decreased.
2. Rent revenue is a part of income and income is part of equity as with increase in income there is increase in equity also.
3. Advertising expense will decrease the income and with decrease in income there will be decrease in equity.
4. Stockholder's pay cash into business as for issuance of stock and with issue of stock equity will increase.
The lack of opportunity ti be one's boss
Answer:
b. mortgage backed securities diversify credit risk for the investor.
Explanation:
An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because <u>mortgage backed securities diversify credit risk for the investor.</u>
In Mortgage Backed Securities, credit risk is diversified as there are many borrowers and investors between whom credit risk diversifies. So that makes investor such as bank prefer the option.
Answer: $8,400
Explanation:
Given the following:
Amount repaid each month = $150
Number of Periods for which amount was paid = 10 months
Amount left after 10 months payment = $6900
Harry's original debt=?
The total amount paid = $150 × 10 = $1500
Amount left = $6900
Total debt amount:
(Total Amount left + total amount paid )
$(6900 + 1500)
=$8400
