According to the theory of liquidity preference, the opportunity cost of holding money is the interest rate.
Liquidity Preference Theory is a model that means that an investor should demand a better rate of interest or premium on securities with long-term maturities that carry larger risk as a result of, all alternative factors being equal, investors like money or alternative extremely liquid holdings.
The opportunity cost of holding money is that the rate of interest forgone on various assets, that we are able to lump along generically and decision “bonds.” The opportunity cost of holding money is that the nominal rate of interest, not the real rate of interest.
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Answer:
a-3 / b-2 / c-4 / d-1
Explanation:
<u>Notes to financial statements</u>: Includes a summary of significant accounting policies and explanations of specific items on the financial statements.
The notes are required by the full disclosure principle. Also referred to as footnotes. Provide additional information pertaining to a company's operations and financial position.
<u>Report of independent registered public accounting firm:</u> Attests to the fairness of the presentation of the financial statements.
is a process designed to provide reasonable assurance regarding the reliability of financial reporting.
<u>Management's discussion and analysis of financial condition and results of operations (MD&A):</u> Is written by the company to help investors understand the results of operations and the financial condition of the company.
Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations
<u>Financial statements</u>: Includes the income statement, balance sheet, statement of stockholders' equity, and statement of cash flows.
are reports prepared by a company's management to present the financial performance and position at a point in time.
Answer:
$230,000
Explanation:
The calculation of treasury stock account balance is shown below:-
Treasury stock account balance on December 31, 2021 balance sheet = Number of shares in treasury stock × Cost per share
= (46,000 - 23,000) × ($460,000 ÷ 46,000)
= 23,000 × $10
= $230,000
Therefore for computing the treasury stock account balance we simply applied the above formula.
Answer:
a. Interest Expense 6,000 Interest Payable 6,000
Explanation:
Adjusting entries are accounting journal entries that convert a company's accounting records to show when the money changed hands and to convert your real-time entries to entries that reflect your accrual accounting system.
In Allenson Brick Company, the accrued expenses entry is made to record interest expense in the year that has not been paid yet by the entry:
Interest Expense 6,000
Interest Payable 6,000
Agatha's weekly allowance is 36.
<h3>What is the cost of the fidgets?</h3>
If she can afford to purchase both four fidgets and three candy bars and nine candy bars and two fidgets, it means that the cost of both options are the same.
4f + 3c = 2f + 9c
Where:
f = cost of one fidget
c = cost of one candy bar
4f + 3(2.40) = 2f + 9(2.40)
4f + 7.2 = 2f + 21.6
4f - 2f = 21.6 - 7.2
2f = 14.4
f = 14.4 / 2
f = $7.20
<h3>What is Agatha's weekly allowance?</h3>
Weekly allowance = 4f + 3c
4(7.2) + 3(2.4)
28.8 + 7.2 = $36
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