Drag each label to the correct location on the image. Identify the features of stocks and bonds.

An initial decreasedecrease in a bank's reserves will decreasedecrease checkable deposits A. by an amount less than the decreas

svlad2 [7]

Answer:

The correct answer is B

Explanation:

Bank reserve is the minimum cash which is required to kept on hand through the financial institutions so that could meet the requirements of central bank.

Checkable deposits is a kind of any demand deposit account in anticipation of the checks or the drafts in any form which will be written. In short, it means that the owner of the account could withdraw funds on demand.

So, if the primary decrease in bank reserve will also decrease the checkable deposit as there would be no cash with bank to provide to customers by the amount that is greater than the decrease in the reserve.

8 0

3 years ago

In 20X1, Modern Property Groups collected rent revenue for 20X2 tenant occupancy. For financial reporting, the rent is recorded

vekshin1

Answer:

Debit deferred tax asset for $12,000

Debit income tax expense for $18,000

Credit income tax payable for $30,000

Explanation:

The journal entries will look as follows:

Date Account Name and Description Debit ($) Credit ($)

20X1 Deferred tax asset (w.1) 12,000

Income tax expense (w.3) 18,000

Income tax payable (w.2) 30,000

(To record income taxes at the end of 20X1.)

Workings:

w.1: Deferred tax asset = Deferred portion of the rent collected in 20X1 * Tax rate = $40,000 * 12% = $12,000

w.2: Income tax payable = Taxable income * Tax rate = $100,000 * 30% = $30,000

w.3: Income tax expense = Income tax payable - Deferred tax asset = $30,000 - $12,000 = $18,000

7 0

3 years ago

A firm's capital structure does not affect its free cash flows as discussed in the text, because fcf reflects only operating cas

Anna [14]

The answer is, the above statement is "true".

Free cash flow (FCF) refers to a measure of an organization's money related performance, figured as working income short capital consumptions. FCF shows the money that an organization can produce subsequent to spending the cash required to keep up or extend its benefit base. FCF is critical on the grounds that it enables an organization to seek after circumstances that upgrade investor value.

8 0

3 years ago

A firm'sprofit margin when ignoring the effects of financing is 20% with an EBIT of $1.5 million and sales of $5 million. How mu

nordsb [41]

Answer:

The firm paid taxes of $0.5 million

Explanation:

Profit margin is the percentage of net income to its sales. It is calculated as follow:

Profit Margin = ( Net profit / Sales ) x 100

20% = (Net profit / 5 million) x 100

(20/100) x 5 million = Net profit

Net profit = 1 million

EBIT is the earning before the payment of interest expense and tax. It is the net of Gross profit and operating expenses.

net income is calculates from EBIT as follow

Net Income = EBIT - Interest expense - Tax

1 = 1.5 - $0 - Tax (ignoring the effect of financing)

Tax = $1.5 - $1

Tax = $0.5 million

5 0

3 years ago

In many cases companies who enter a market after innovative products have been introduced can achieve long-term competitive adva

photoshop1234 [79]

Answer:

First mover; Late mover

Explanation:

In many cases companies who enter a market after innovative products have been introduced can achieve long-term competitive advantages by continuing to develop a better mousetrap. For example, VisiCalcwas the first company to introduce a desktop spreadsheet program but Lotus Notes cornered a large market share when it introduced the 1-2-3 program. Today, however, Microsoft's Excel is the dominant spreadsheet software program and has continued to endure due to the popularity of the Microsoft Office Suite of products. VisiCalc possessed a First Mover advantage while Microsoft enjoyed a Late Mover advantage.

First mover advantages: It is the marketing strategy of initiating any technique in the market to gain competitive advantages for being the first entrant with any new technique or technologies. It also helps in gaining brand recognition and market share.

Last mover advantages: It is another marketing strategy to gain competitive advantages by late introducing the product in the market after learning from the technique of competitors, it also helps in avoiding mistakes of rivals in the market.

In the given case, VisiCalc has enjoyed first-mover advantages as it was first one of its own type to be introduced in the market, however, Microsoft enjoyed last mover advantages as the consumer has found better and easier product than previous one, which was in the favor of Microsoft.

3 0

3 years ago