Answer:
The expected profit is -$13,162.
I would not recomend the investor to make this investment.
Explanation:
The expected profit can be calculated multypling the probabilities of every outcome and the profit of each outcome, and substracting the total invevstment.
The outcomes are:
1) probability 0.39 of a $23,000 loss,
2) probability 0.24 of a $8700 profit,
3) probability 0.12 of a $31,000 profit, and
4) probability 0.25 of breaking even
NOTE: It is assumed that the outcomes does not include the initial investment.
Then, the expected profit of this investment is:
![E(P)=[0.39*(-23,000)+0.24*8,700+0.12*31,000+0.25*0]-10,000\\\\E(P)=[-8,970+2,088+3,720+0]-10,000\\\\E(P)=-3,162-10,000\\\\E(P)=-13,162](https://tex.z-dn.net/?f=E%28P%29%3D%5B0.39%2A%28-23%2C000%29%2B0.24%2A8%2C700%2B0.12%2A31%2C000%2B0.25%2A0%5D-10%2C000%5C%5C%5C%5CE%28P%29%3D%5B-8%2C970%2B2%2C088%2B3%2C720%2B0%5D-10%2C000%5C%5C%5C%5CE%28P%29%3D-3%2C162-10%2C000%5C%5C%5C%5CE%28P%29%3D-13%2C162)
Answer:
c
Explanation:
most are home businesses you can write off many things on taxes and have less overhead (bills and rent )
Answer:
A) Dr. Encumbrances – Office supplies No entry
Cr. Encumbrances outstanding
Explanation:
The journal entry is given below;
For Governmental fund financial statements
Encumbrances-Office Supplies $1,500
To Encumbrances Outstanding $1,500
(Being Office Supplies ordered is recorded)
For Government-wide financial statements
No journal entry is required as under the accrual accounting, no entry should be recorded until the transaction does not arise
Therefore the option a is correct
Answer: increase by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million
Explanation:
Based on the information given in the question, the money multiplier will be calculated thus:
Money multiplier = 1/Required reserve ratio
where,
Required reserve ratio = 20%
Money Multiplier will now be:
= 1/0.20
= 5
Therefore, the maximum money-lending potential will be:
= $80 million × 5
= $400 million
Therefore, the money supply will by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million
