Answer:
<em>In theory, both are riskless but in practicality they aren't completely risk free.</em>
Explanation:
<em>In investment theory</em>, the investment in government bonds is <em>riskless </em>, irrespective of the investment maturity period because they are backed by the government.
However, <em>in practicality</em> every investment involves risk whether it's a short term or long term. However, a short term investment like the one specified in <em>statement 2</em> involves lower time frame and thereby lower volatility, hence it implies <em>lower risk</em>. The investment specified in <em>statement 1</em> is of longer term and hence can involve higher volatility, hence it implies <em>higher risk.</em>
<em><u>Note</u></em><em>- All the governments are prone to risk practically</em> because they are also part of the global financial and economic system and hence, they have to manage their budget balances prudently. Every investment thereby involves <em>risk</em>, it's just the <em>financial backing</em> of the <em>government financial</em> <em>instruments</em> which makes them less risky as compared to the other financial instruments.
Answer:
Accounts receivables 45,000 debit
Fees revenue 45,000 credit
Explanation:
Harry will record based on previous expenrience using the gross method that is, to record according to the nominal value of the invoice Thus account receivables and the revenue recognize will be for the full amount. If latter the customer uses the discount then, it will use the sales discount account to later determinate net sales in the income statement.
B. Too broad
While this maybe true. It's way too broad of a statement to conclude.
Answer:
a. Demand will increase.
b. Demand will increase.
c. Demand will increase.
d. Demand will decline.
e. Demand will increase.
Explanation:
a. If small automobiles become more fashionable, people will prefer them more. This will lead to an increase in demand for autos.
b. If there is an increase in the price of large automobiles and the price of the small automobiles remain the same, people will prefer the cheaper substitutes. This will cause the demand for small automobiles to increase.
c. Inferior goods have a negative income effect. SO, when income declines the demand for small autos will increase and vice versa.
d. If consumers expect the price of small autos to fall in the near future, they will hold their money to buy autos when their price fall. This will cause the current demand to fall.
e. When the price of gasoline drops it will become cheaper to use autos. This will lead to an increase in demand for autos.
Answer: discloses contribution margin in the body of the statement.
Explanation:
The Cost Volume Profit (CVP) income statement is made to better show the influence of variable costs and fixed costs on income. It as well shows the effects that changing costs and production volume can have on the income.
Although it shows the same income as a traditional income statement, the format is different in that the contribution margin is included in the statement and the costs and revenue per unit are shown as well.
