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Free_Kalibri [48]
2 years ago
11

Security markets provide liquidity:________

Business
1 answer:
Keith_Richards [23]2 years ago
5 0

Answer:

C. by allowing corporations to raise funds by selling new issues and by creating a market in which owners may easily turn an investment into cash through its sale

Explanation:

Naturally, a security market is seen to permit you do more with your actual savings within your saving periods. It is seen to aid over the counter trading which is seen to occur directly between the trader and the broker. In certain cases that can be termed marketable securities, it is seen to occur due to the maturities are seen to tend to be less than one year; and at such, the buyer/broker rates at which they can be bought or sold have little effect on prices.

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Received contributions of $ 10 comma 000$10,000 in exchange for common stock. a. Increase asset (Cash) ; Increase equity (Common
MakcuM [25]

Answer:

The answer is stated below:

Explanation:

A. Received or collected $10,000 in exchange of the common stock:

This transaction will have an impact on the Accounting Equation of the Accounts, which is :

Assets = Liabilities + Equity

As the cash is received, there will be an increase in the assets and under the cash account of the current assets. Though the cash is against the common stock, which increases the common stock account upon the side of the equity.

Therefore, it will be:

Increase in assets (Cash) : Increase in equity (Common Stock)

B. Bought the equipment on account worth $5,000.

This transaction will have an impact on the Accounting Equation as:

As the equipment is purchased will in turn lead to increase in the assets side, under the equipment account and it is purchased on account, which means on credit, that leads to increase in the liability under the Accounts Payable account.

Therefore, it will be:

Increase in assets (Equipment) : Increase in Liability (Accounts Payable)

6 0
3 years ago
What is the main activity of a producer cooperative?
fomenos
I think it's C

I hope it helped you!
5 0
2 years ago
Distinguish between limited and unlimited liability
ehidna [41]

This relates to liability of business owners. When a company has unlimited liability and starts losing money, the owners can be personally liable for losses meaning their home and personal assets could be lost. Limited liability means they can only lose the amount that they invested in the company and none of their personal assets.

5 0
3 years ago
a. If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety
lutik1710 [3]

Answer:

Results are below.

Explanation:

Giving the following information:

Break-even point in sales= $960,000

Actual sales= $1,200,000

<u>To calculate the margin of safety in dollars and as a percentage, we need to use the following formulas:</u>

Margin of safety= (current sales level - break-even point)

Margin of safety= (1,200,000 - 960,000)

Margin of safety= $240,000

Margin of safety ratio= (current sales level - break-even

point)/current sales level

Margin of safety ratio= 240,000 / 1,200,000

Margin of safety ratio= 0.2 = 20%

8 0
2 years ago
To make students more competitive in the work force and for graduate school, college professors are beginning to lower the stand
Pavlova-9 [17]

Answer:

The correct answer is Grade inflation.

Explanation:

The inflation of grades is the term used to designate the distortion in the distribution of grading frequencies that the teacher or his group assigns to his students. It is characterized by an overabundance of high ratings. This situation may end up causing an unwanted effect, because students are shown as successful in the face of future jobs but in reality they do not demonstrate that training that details their qualifications.

5 0
3 years ago
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