<span>Transactions that are included in continuing operations are income from revenue,expenses, gains and losses.These are the components that will probably continue in future periods. It is important to segregate income from continuing operations from other transactions that affecting net income, because the information will help analysts predicts future cash flows.</span>
Answer:
A.True
Explanation:
the net profit will drop for 0.05 to 0.045
but the as the equity multiplier increase to 2 this means equity finance 50% of the company thus, the return on equity will be of:
Assets turnover x profit margin = 0.0675
that is the return on assets.
but equity present half the assets thus, the multiplier is 2
return on assets x equity multiplier = return on equity
0,0675 x 2 = .135 = 13.5%
This makes the statemnt true, the comapny will benefit from taking debt as will increase the return on the stockholders which is the goal for a good management.
<u>Answer:</u>
Federal bank increase initial reserves (by purchase of government bonds) by $8 million, to increase money supply by $40 million
<u>Explanation:</u>
Open market operations refer to buying 7 selling of government securities, to regulate money supply. To increase money supply, central bank buys the government bonds. As, purchase transaction from commercial bank or public imply they have more liquid money supplied.
Money multiplier reflects the multiple change in total money deposits, due to increase in initial deposits.
Final Deposits = (1 / RR) x Initial Deposits; where RR = Reserve requirement
Needed increase in money supply = 40 million, Reserve requirement = 20%
∴ 40 = ( 1 / 0.20 ) x Initial deposits
40 = 5 x Initial Deposits
Initial Deposits = 40 / 5
Initial deposits = 8
The United States' increase in international trade is partly due to different factors. Some of these factors are the improvements in transportation, which we know give access to the deliveries of the different trade products and travelling to the area of origin is already easy. The advancement in telecommunications also provides an increase in trade since relaying information is faster than before, this means different instructions and specifications and even gathering orders from far places can be easily sent and received. And another one is the increasing trade of goods with a higher value per pound. High value gives more profit and income tot he trade industry.
