1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zielflug [23.3K]
2 years ago
13

What Is margin of safety?

Business
1 answer:
skelet666 [1.2K]2 years ago
5 0

Answer:

Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. ... Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales

You might be interested in
A(n)_____ is a structured review of specific quality management activities that help identify lessons learned that could improve
kvv77 [185]

A Quality Audit is a structured review of specific quality management activities that help identify lessons learned that could improve performance on current or future projects.

<h3>What is an Audit?</h3>

An audit is the physical and thorough inspection of an organization's account or activities carried out by an independent body.

In a Quality management system, a Quality audit must be carried out. The quality audit is a structured review regarding the quality management activities that helps in improving performance of the organization.

Learn more about Audit here:

brainly.com/question/26048609

3 0
2 years ago
The Holiday Corporation had sales of $450 million this year. Its accounts receivable balance averaged $30 million. How long, on
Zina [86]

Answer:

24.3 days

Explanation:

Calculation for How long, on average, does it take the firm to collect on its sales

Using this formula

Average collection period = (Accounts receivable / Credit sales) * 365 days

Let plug in the formula

Average collection period =$30 million/$450 million *365 days

Average collection period =24.3 days

Therefore How long, on average, does it take the firm to collect on its sales is 24.3 days

8 0
2 years ago
What is a fiscal year?
Darina [25.2K]

A fiscal year, is a 12-month financial planning period that may or may not coincide with the calendar year.

Explanation:

A fiscal year to the government is just like a financial year for a company/corporation.

A government can have a fiscal year from the middle of a year (July) to the next year (June) which in total is 12 months.

Sometimes a fiscal year coincide with the calendar year but that does not acknowledge the fact that is must be a calendar year.

This fiscal period are a planned period to take up projects or meet budgets.

3 0
3 years ago
Read 2 more answers
Beleaguered State Bank (BSB) holds $500 million in deposits and maintains a reserve ratio of 20 percent. Complete the following
leonid [27]

Answer:

1. See part 1 of the attached excel file for the T-account.

2. See part 2 of the attached excel file for the T-account.

3. Because BSB is cutting back on its loans, other banks will find they have <u>lower</u> reserves, causing them to <u>reduce</u> their loans. Which of the following ways represent an alternative for BSB to return to its original reserve ratio? Check all that apply.

4. The correct options are b. Borrow money from another bank and d. Attract additional deposits.

Explanation:

1. Beleaguered State Bank (BSB) holds $500 million in deposits and maintains a reserve ratio of 20 percent. Complete the following T-account for BSB.

Note: See part 1 of the attached excel file for the T-account.

In the attached excel, the following calculations are made:

Reserves = $500 million * 20% = $100 million

Loans = $500 - $100 = $400

2. Now suppose that BSB's largest depositor withdraws $25 million in cash from her account. BSB decides to restore its reserve ratio by reducing the amount of loans outstanding.

Note: See part 2 of the attached excel file for the T-account.

In the attached excel, the following calculations are made:

Deposits = $500 million - $25 million = $475 million

Reserves = $475 million * 20% = $95 million

Loans = $475 - $95 = $380

3. Because BSB is cutting back on its loans, other banks will find they have <u>lower</u> reserves, causing them to <u>reduce</u> their loans. Which of the following ways represent an alternative for BSB to return to its original reserve ratio? Check all that apply.

4. Which of the following ways represent an alternative for BSB to return to its original reserve ratio? Check all that apply.

The correct options are b. Borrow money from another bank and d. Attract additional deposits.

Download xlsx
4 0
3 years ago
g Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP,
satela [25.4K]

Expansionary monetary policy shifts AD to the right.

<h3>What is Expansionary monetary policy?</h3>
  • Expansionary policy, often known as loose monetary policy, expands the availability of money and credit in order to stimulate economic growth.
  • During difficult economic circumstances, a central bank may use expansionary monetary policy to reduce unemployment and stimulate growth.
<h3>Impacts on GDP, unemployment, and inflation by the increase of supply of money:</h3>
  • The Federal Reserve begins to grow the money supply at an increasing rate.
  • The impact on GDP, unemployment, and inflation would be significant.
  • AD is shifted to the right by expansionary monetary policy.

Therefore, expansionary monetary policy shifts AD to the right.

Know more about Expansionary monetary policy here:

brainly.com/question/18939014

#SPJ4

8 0
2 years ago
Other questions:
  • What are the rights of incidental beneficiaries?
    11·1 answer
  • The focus of the Manufacturing career cluster is to make useful products. to use machines. to perform maintenance and installati
    9·1 answer
  • 2. If the interest rate on a savings account is 0.018%, approximately how much money do you need to keep in this account for 1 y
    10·1 answer
  • Joe's income is $300. He can buy 2 goods – Food and Shelter. a. (5 points) Write the budget constraint and draw the budget line
    8·1 answer
  • Making it right the first time is
    9·1 answer
  • The hidden-cost fallacy occurs when a. ​A firm considers irrelevant costs b. ​A firm ignores relevant costs c. ​A firm considers
    8·1 answer
  • How much money will Yoko have left over for her savings each month? $85 $95 $110 $120
    14·2 answers
  • On January 2, Year 3, Lake Mining Co.’s board of directors declared a cash dividend of $400,000 to shareholders of record on Jan
    11·1 answer
  • Kaspar Industries expects credit sales for January, February, and March to be $205,100, $263,100, and $314,500, respectively. It
    11·1 answer
  • If the firm is facing the threat of trade barriers such as high import tariffs or quotas and the firm has proprietary technology
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!