Answer:
The correct answer is: firms are unlikely to undertake investment.
Explanation:
The liquidity trap is a situation described in the Keynesian economy according to which, liquidity injections into the private banking system by the central bank do not lower interest rates or inject money into the economy and therefore do not stimulate economic growth as claimed by monetarism.
The liquidity trap occurs when people accumulate cash because they expect an adverse event, such as deflation, reduction in aggregate demand and GDP, an increase in the unemployment rate or a war. People are not buying, companies are not borrowing and banks are not lending either because they do not have enough solvency since the economic outlook is uncertain and investors do not invest because the expected returns on investments are low.
The most common characteristics of a liquidity trap are interest rates close to zero and fluctuations in the monetary base that do not translate into fluctuations in general price levels.
Answer:
a.common stock.
Explanation:
The additional $10,000 of owners equity after listing on the stock market will be named as common stock. After listing company issues shares for capital investment in it. Common stock is the appropriate term used for every addition in the owners equity. So the correct option is a.common stock.
Answer and Explanation:
The financial statement effects template to reflect the following events is shown below:-
Balance Sheet
Transaction Cash assets + Non Cash = Liabilities+Contributed assets capital Earned Capital
a. $400,000 $400,000
b. -$18,000
-$18,000
c. -$202,000 -$202,000
Income statement
Transaction Revenue - Expense = Net income
b. $18,000 -$18,000
c. $2,000 -$2,000
The purchase of land by Hanover, Inc. through the issuance of long term bonds should be reported on the statement of cash flows as
significant non cash investing and financing activity that merits disclosure.
I thought it would be B. Because if she is doing audit and knows someone in the company that is helping with the audit, she is NOT legally able to do the audit! That is what I learned in accounting anyway. I am not sure though just an input.I would pick B.
