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3 years ago

Choose the correct statements below regarding the transfer of financial assets such as receivables:

Business

1 answer:

WARRIOR [948]3 years ago

5 0

Answer:

The correct statement regarding the transfer of financial assets such as receivables:

b. II only.

Explanation:

The transfer is not regarded as payment for the debt. Therefore, a liability is recorded for the amount borrowed while the financial asset remains in the records of the transferor until the final settlement. Appropriate disclosures are made in the transferor's financial statements about the security on the financial assets.

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In which sequence will events occur when the economy adjusts to an expansionary monetary policy, in the short run and then in th

Kitty [74]

Answer:

1. The Fed uses open market operations to increase the money supply, thus lowering interest rates and stimulating investment.

Expansionary monetary policy is done to stimulate economy by increasing money supply. It lowers interest rates and leaves more money for consumption and investment.

2. Increased aggregate demand leads to some higher prices and more total output.

Increased AG will lead to prices being higher in response. This would spur producers to produce more thereby increasing output.

3. Sticky input prices adjust to inflation.

Input prices will rise overtime to match the increase in prices.

4. Producers lay off some workers in response to higher input prices, causing a decrease in aggregate supply.

When the inputs rise, production becomes more expensive so producers will have to lay off workers to maintain profitability. They will also supply less goods as a result.

5. In the long run, equilibrium returns to the same initial production level.

In the long run therefore, the reduction in AS leads to production returning to pre-monetary policy figures.

6 0

3 years ago

For a recent 2-year period, the balance sheet of Blue Company showed the following stockholders’ equity data at December 31 (in

Misha Larkins [42]

Answer:

Par value of common stock is $2.5

Explanation:

The par value of common stock can determined by dividing the common stock total amount in each of the two years by the shares issued and outstanding in each year as demonstrated below:

2019:

Par value of common stock =Common stock($)/shares issued

common stock($) is $555 million

shares issued and outstanding is 222 million shares

par value of common stock=$555 million/222 million=$2.5

2020:

Par value of common stock =Common stock($)/shares issued

common stock($) is $560 million

shares issued and outstanding is 224 million shares

par value of common stock=$560 million/224 million=$2.5

Ultimately the par value of common stock as shown be computations for both years is $2.5

7 0

3 years ago

Symon's Suppers Co. has announced that it will pay a dividend of $4.39 per share one year from today. Additionally, the company

zavuch27 [327]

Answer:

The current share price is $60.97

Explanation:

The values given are

Symon's super corporation is expected to pay a dividend of $4.39

The company expects to increase its dividend by 4.2percent every year

The required return on the company's stock is 11.4 percent

Therefore, the current share price is

= 4.39/( 11.4/100 + 4.2/100 )

= 4.39/( 0.114 - 0.042)

= 4.39/(0.072)

= 60.97

Thus, the current share price is $60.97

8 0

3 years ago

A fast-food restaurant accepts five dollars in cash as payment for three tacos. This is an example of money's role as a:

shtirl [24]

Answer:

The correct answer is c. medium of exchange.

Explanation:

Money is a financial asset that serves as an intermediate platform to optimize the exchange of goods and services, avoiding the inaccuracies of bartering, that is, the direct exchange of goods and services. Therefore, for a good to be qualified as money, the following three criteria must be met and that are the three main functions that money fulfills in a modern economic system:

Exchange medium: to avoid the inefficiencies of a barter system. When a good is required for the sole purpose of using it to be exchanged for other things, it owns this property. In addition, money should be a lightweight and easy to store and transport.
Unit of account: When the value of a good is frequently used to measure and compare the value of other goods or when its value is used to denominate debts, it is said that the good possesses this property. The unit of account means that it is the unit of measure that is used in an economy to set prices.
Conservation of value: When a good is acquired with the objective of preserving commercial value for future exchange, then it is said to be used as a store of value. Money is a store of value but not the only one, any asset that maintains its purchasing power over time will serve as a store of value.

4 0

3 years ago

rede Company budgeted selling expenses of $30,600 in January, $34,500 in February, and $40,500 in March. Actual selling expenses

KengaRu [80]

Answer:

JANUARY

By month

$1,100 Unfavorable

Year-to-date

$1,100 Unfavorable

FEBRUARY

By month

$420 Favorable

Year-to-date

$680 Unfavorable

MARCH

By month

$7,900 Unfavorable

Year-to-date

$8,580 Unfavorable

Explanation:

Preparation of a selling expense report that compares budgeted and actual amounts by month and for the year to date

SELLING EXPENSE REPORT

JANUARY

By month

Budget Actual Difference

$30,600 -$31,700 =$1,100 Unfavorable

Year-to-date

Budget Actual Difference

$30,600-$31,700=$1,100 Unfavorable

FEBRUARY

By month

Budget Actual Difference

$34,500-$34,080=$420 Favorable

Year-to-date

Budget Actual Difference

$65,100-$65,780=$680 Unfavorable

($30,600+$34,500=$65,100)

($31,700+$34,080=$65,780)

MARCH

By month

Budget Actual Difference

$40,500-$48,400=$7,900 Unfavorable

Year-to-date

Budget Actual Difference

$105,600-$114,180=$8,580 Unfavorable

($65,100+$40,500=$105,600)

($65,780+$48,400=$114,180)

5 0

3 years ago