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Alexandra [31]
3 years ago
6

Your aunt has promised to give you $5,000 when you graduate from college. You expect to graduate three years from now. If you sp

eed up your plans to enable you to graduate two years from now, the present value of the promised gift will: Multiple Choice be less than $5,000. remain constant. decrease. Incorrect equal $5,000. increase
Business
1 answer:
ikadub [295]3 years ago
3 0

Answer:

The present value of the promised gift will:

be less than $5,000.

Explanation:

The present value of $5,000 to be received in three years' time from today is less than $5,000 received.  This is explained by the time value of money concept.  If the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be $3,755 ($5,000 * 0.751).  This means that $5,000 received in year 3 is less than $5,000 received today.

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Small businesses that are just getting off the ground often have problems with the difference between cash coming into the busin
faust18 [17]

Answer:

d) <u>cash flow</u>

Explanation:

Small businesses are characterized by limited scale of operations and small quantum of revenues. Thus, small businesses in their initial stages have to deal with the common problem of shortage of funds owing to delay in receipts from debtors owing to relaxed credit terms.

The receipts are not received on time while the expenses accumulate which leads to a situation of cash crunch wherein it gets difficult to meet expenses and liabilities.

Thus, to avoid such situations businesses have to consider their credit policies and credit allowing limit so as to ensure enough cash to meet day to day working capital requirements.

This points towards being careful of cash inflows and outflows and efficient management of cash flows, keeping check on receipts and payments to ensure smooth operations.

4 0
3 years ago
Jane currently has $5,300 in her savings account and $2,000 in her checking account at the local bank. Instructions:
mrs_skeptik [129]

Answer:

A

  • M1 change = $500
  • M2 change = $0

B

  • M1 change = -$340
  • M2 change = -$180

Explanation:

A. M1 includes actual liquid cash in hand as well as cash in checking deposits.

M2 includes M1 as well as savings deposits and time deposits amongst others.

M1 change = +$500

$500 went from the Savings account which was not part of M1 to M1.

M2 change = $0

The money went from Savings to Checking which are both part of M2.

B.

M1 change = -$-180 - ( 500 - 180 -160 ) = -$340

Tax of $180 went out of the supply as tax. Jane deposits the remaining cash after paying $160 for goods into the savings account which is not part of M1. That remaining cash is = 500 - 180 - 160 = $160.

M2 change = -500 + 160 + 160 = -$180

For M2, only taxes will reduce money from it because the rest goes to checking deposits and savings accounts both of which are part of M2

4 0
3 years ago
Individual profit earned by Dave, the oligopolist, depends on which of the following? (i) The quantity of output that Dave produ
UkoKoshka [18]

The options are:

(i) The quantity of output that Dave produces (ii) The quantities of output that the other firms in the market produce (iii) The extent of collusion between Dave and the other firms in the marketa. (i) and (ii)b. (ii) and (iii)c. (iii) only d. All of the above

Answer:

d. All of the above

That is

(i) The quantity of output that Dave produces

(ii) The quantities of output that the other firms in the market produce

(iii) The extent of collusion between Dave and the other firms in the market.

Explanation:

An oligopoly is defined as an economy where there are small number of firms that cannot prevent others from having much impact in the market. These firms control the way are done with regards for price.and supply of goods and services.

So in this type of market the profit earned by Dave will depend on quantity of output produced by Dave, quantity of goods manufacturerd by other firms, and Dave's degree of collusion with other firms.

7 0
3 years ago
Read 2 more answers
A. The owner invested $16,200 cash in the company in exchange for its common stock.
Anon25 [30]

Answer:

a. Assets increase by $16,200; and Shareholders' equity increases by $16,200.

b. Assets increase by $800; and Assets decrease by $800.

c. Assets increase by $10,600; and Shareholders' equity increases by $10,600.

d. Assets increase by $260; and Liabilities increases by $260.

e. Assets increase by $9,600; and Assets decrease by $9,600.

Explanation:

The accounting equation that is impacted is given as follows:

Assets = Shareholders' equity + Liabilities

The impact of each transaction on individual items of the accounting equation are as follows:

a. The owner invested $16,200 cash in the company in exchange for its common stock.

Cash is an asset item, current asset to be specific; while common stock is one of the components of Shareholders' equity. The investment of $16,200 by the owner will therefore increase assets and Shareholders' equity.

Therefore, Assets increase by $16,200; and Shareholders' equity increases by $16,200.

b. The company purchased supplies for $800 cash.

Cash and supplies are both assets item, current assets to be specific. The purchase of supplies will increase the inventory of supplies which is an asset item by $800, while it will reduce cash which is another asset item also by $800.

Therefore, Assets increase by $800; and Assets decrease by $800.

c. The owner invested $10,600 of equipment in the company in exchange for more common stock.

Equipment is an assets item, fixed assets to be specific; while common stock is one of the components of Shareholders' equity. The investment of $10,600 worth of equipment by the owner will therefore increase assets and Shareholders' equity each by $10,600.

Therefore, Assets increase by $10,600; and Shareholders' equity increases by $10,600.

d. The company purchased $260 of additional supplies on credit.

Supplies is an assets item, current assets to be specific; while purchase on credit is a liability item, current liability which is an account payable to creditor of supplies. The purchase of supplies will increase supplies which is an assets item by $260, and it will also increasethe account payables to creditor of supplies.

Therefore, Assets increase by $260; and Liabilities increases by $260.

e. The company purchased land for $9,600 cash.

Cash and land are both assets item, current assets to be specific. The purchase of land will increase the inventory of land which is a fixed asset item by $9,600, while it will reduce cash which is another asset (current asset) item also by $9,600.

Therefore, Assets increase by $9,600; and Assets decrease by $9,600.

7 0
3 years ago
The ability to market your skills and persuade internal customers to use your services is an example of:
spayn [35]

Answer:

HELPPPPPPPPP

Explanation:

 an example of:

8 0
3 years ago
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