Excise tax is levied in the __ of goods and services

3. What's the biggest mistake people make when they're looking for an apartment to rent?

maksim [4K]

They dont ask questions about the apartment and its history or whether its close to there job or work place

5 0

3 years ago

Balance of payments accounts are the accounts in which a nation records its _____.

Kryger [21]

Answer:

Explanation:

The balance of payments accounts also known as balance of international payments, are the accounts in which a nation records, summarizes all transactions that a country's individuals, companies and government bodies complete with individuals, companies and government bodies outside the country. These transactions consist of imports and exports of goods, services and capital, as well as transfer payments, such as foreign aid and remittances.

A country's balance of payments and its net international investment position together constitute its international accounts.

The balance of payments divides transactions in two accounts: the current account and the capital account. Sometimes the capital account is called the financial account, with a separate, usually very small, capital account listed separately. The current account includes transactions in goods, services, investment income and current transfers. The capital account, broadly defined, includes transactions in financial instruments and central bank reserves. Narrowly defined, it includes only transactions in financial instruments. The current account is included in calculations of national output, while the capital account is not.

3 0

3 years ago

When the amount of revenue collected in advance decreases during an accounting period:(A) Accrual-basis revenues exceed cash col

otez555 [7]

Answer:

The correct answer is letter "A": Accrual-basis revenues exceed cash collections from customers.

Explanation:

Revenue collected in advance are profits collected usually at the beginning of a contractual agreement that implies obligations from the firm for a certain time. For instance, insurance companies charging a one-time payment for an annual policy fall into this category.

The accrual basis of accounting states that profits are reported on the income statement as they are earned. In that case, if the revenue collected in advance decreases, the accrual-basis revenues will be higher than the cash collections from customers under the advanced payment method.

5 0

3 years ago

Imagine that you are holding 7,000 shares of stock, currently selling at $70 per share. You are ready to sell the shares but wou

Readme [11.4K]

Answer:

Consider the following calculations

Explanation:

Number of Shares held = 7000

Current Price = $ 70

Portfolio Value = 7000 * 70 = 490,000

If continued to hold the shares

Portfolio value at $ 57 = 7000 * 57 = 399,000

Portfolio Value at $ 77 = 7000 * 77 = 539,000

If implemented collar strategy - Selling a call option and buying a put option

Call option

Strike Price = 75

Price of the option = $ 2

Put Option

Strike Price = 65

Price of the option = $ 4

Amount received on sale of Call option = 7000 * 2 = 14,000

Amount paid on buying a put option = 7000 * 4 = 28,000

Value of the Portfolio = 7000 * 70 + 14000 – 28000 = 490,000 +14000 – 28000 = 476,000

If the stock price in January is 57

As the strike price 75 is higher than the current market price of 57, the call option buyer will allow the option to expire

As the strike price of 65 is higher than the current price of 57, the investor will utilise the put option

Profit from Put option can be obtained by buying shares from market and selling the same under the put option

Profit from put option =7000 * (65-57) = 7000 * 8 = 56000

Value of the portfolio = Holding Value at current price + premium received – premium paid+ profit from put option

= 7000 * 57 + 14000 – 28000 + 56000

= 399000 + 14000 – 28000 + 56000

= 441,000

If the stock price in January is 70

As the strike price 75 is higher than the market price of 70, the call option buyer will allow the option to expire

As the strike price of 65 is lower than market price of 70, the invest will allow the put option to expire

Portfolio Value = Holding value at current market price + premium received – premium paid

= 7000 * 70 + 14000 – 28000

= 490000 + 14000 – 28000 = 476,000

If the market price in January is 77

As the strike price of 75 is lower than market price of 77, the buyer of call option will enforce the call option

Loss from call option = 7000 * (77-75) = 7000 * 2 = 14000

As the strike price of 65 is lower than market price of 77, the investor will allow the put option to expire

Portfolio Value = Holding value at current market price + premium received – premium paid – loss on call option

Portfolio value = 7000 * 77 + 14000 – 28000 – 14000

= 539000 + 14000 – 28000 – 14000

= 511,000

Download xlsx

4 0

4 years ago

An depreciation of the U.S. dollar yields the average American resident to be relatively less wealthy compared to people living

kupik [55]

Answer:

Those who sell their goods and services abroad benefit from devaluation.

Explanation:

The firms and people who sell their goods and service abroad benefit from a US Dollar devaluation. Since their products are sold abroad, a devaluation increases the competitiveness of their offer compared with other countries, making more attractive their offer because they sell the same quality and value at a lower price

4 0

3 years ago