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4 years ago

Which three factors make starting a business a highly risky investment?

1 answer:

3 0

The correct options are B, C and E.
Starting a business can be a risky move because of some elements which are involved in creating a new business. For instance, large amount of capital is needed to start a typical business and the uncertain conditions which prevails in the business world can make one to lose one's capital in no time at all. The extent to which assets can be converted to cash is also one of the risks that one must considered.

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Allowance for Doubtful Accounts has a debit balance of $845 at the end of the year (before adjustment), and an analysis of accou

egoroff_w [7]

Explanation:

Given that

Debit balance = $845

Uncollectible receivables = $15,368

The Journal entry is given below:-

1. Bad debt expenses $16,213

To, Allowance for Doubtful Accounts $16,213

(Being bad dept expenses is recorded)

Note

Computation is shown below:-

Debit balance + Uncollectible receivables

= $845 + $15,368

= $16,213

5 0

4 years ago

If the prices of X and Y are $2 and $4 per unit, respectively, and this consumer has $10 in income to spend, to maximize total u

beks73 [17]

Answer:

In this case the consumer needs to buy one unit of X good and 2 units of Y goods to maximize total utility.

Explanation:

In order to maximize total unity, the consumer needs to buy buy one unit of X good and 2 units of Y. This combination of goods will give the total satisfaction to the consumer with its available resources.

Utility is a meaning, which is used in economics. Which is used for satisfaction and fulfillment. That a consumer receives from the consumption of a particular product or service.

Total utility is the overall or total satisfaction a customer receives through taking a specific good or service.

7 0

4 years ago

You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $75,000 a

o-na [289]

Answer:

The amount needed in the retirement account is $707,025.

Explanation:

This problem is a case of annuity.

They plan to withdraw $ 75,000 annually from the end of the first year of retirement.

The formula that relates capital in the account to annual withdrawals is

$C=A*D=A*(\frac{(1+i)^{n} -1}{i*(1+i)^{n}} )\\\\C=75,000*9.427=707,025$

8 0

4 years ago

The following information pertains to Peak Heights Company:

Delvig [45]

Answer:

Peak Heights Company

PEAK HEIGHTS COMPANY

Statement of Cash Flows

Operating Activities Section

Net income $15,625

Non-cash flow: Depreciation 6,700

Changes in working capital:

Accounts receivable -$4,400

Inventory 4,000

Salaries payable 750

Net cash from operating activities $22,675

Explanation:

A) Data and Calculations:

Peak Heights Company:

Income Statement for Current Year

Sales $85,900

Expenses Cost of goods sold $51,675

Depreciation expense 6,700

Salaries expense 11,900 70,275

Net income $15,625

Partial Balance Sheet Current year Prior year Changes

Accounts receivable $9,800 $14,200 -$4,400

Inventory 13,100 9,100 4,000

Salaries payable 1,620 870 750

5 0

3 years ago

"Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be a

Vikki [24]

Answer:

<u>Microeconomics</u>

How much will Ultravision charge for "Call of Obligation?"

Is Ultravision able to sell all of the "Call of Obligation" games it produces or do they need to produce more?

How does Ultravision choose to market "Call of Obligation?"

How much will Ultravision pay the developers of the game?

<u>Macroeconomics</u>

Has the country's unemployment rate changed as Ultravision hired a huge team of workers to develop the game?

Have the millions of dollars that people have spent on video games worldwide affected the Gross Domestic Product (GDP) in their respective countries?

How much less economic output occurs countywide because workers call in sick to stay home and play either "Call of Obligation" or another video game?

Explanation:

Microeconomics refers to the study of the events resulting from responses of individuals to changes in motivation, prices, measures to produce and methods of production.

Macroeconomics

Macroeconomics is the subdivision of economics that is concerned with the functioning and organizational structure, characteristics, behavior and the selection processes and making decision with regards to the entire economy.

5 0

3 years ago