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3 years ago

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The ______ is when a higher price level reduces the purchasing power of the public's accumulated savings balances. Multiple choi

ce question. international-trade effect real-balances effect price-level effect interest-rate effect

1 answer:

katovenus [111]3 years ago

4 0

Answer:

Explanation:

Hi

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Firms with volatile operating income tend to have lower debt ratios because Blank______. Multiple choice question. there is a lo

lubasha [3.4K]

<h3>Option 2 is correct - There is a higher probability of experiencing Financial distress.</h3>

Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.

Financial distress is a condition in which a company or individual cannot generate sufficient revenues or income, making it unable to meet or pay its financial obligations. This is generally due to high fixed costs, a large degree of illiquid assets, or revenues sensitive to economic downturns.

Following reasons can lead to financial distress in a firm.

Cash flows - The first sign that things are going wrong is a constant shortage of cash. The old adage that cash is king exists for a reason
Falling margins and poor profits - Experienced entrepreneurs have learnt that for long-term survival what matters are profits, not only sales. Poor profits are usually the first indicators that a business is not doing well.
Poor sales growth or decline in revenues - When there is no sales growth despite extreme marketing activities, this could indicate a lack of customer acceptance, which is key to any business success.
Extended payment days - Another sign of possible trouble is a rise in either creditor or debtor payment days. If business has to delay payments to its creditors, this can force some suppliers to stop supplying

Difficulty in raising capital - If a company is constantly borrowing and asking its investors to inject more capital, this is an underlying sign that it is increasingly finding it difficult to self-sustain.

Hence, Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.

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7 0

2 years ago

Business Communication

atroni [7]

Answer and Explanation:

It is good to respond to These congratulatory notes or Pat's at the back because are attempts made by others to connect with you personally; people reach out to you through these efforts and professional or personal bonds can be formed because of these.

How should you respond?

You can respond by showing gratitude or by being appreciative of the gestures. You can say you are grateful for the kindness you received regarding your award.

7 0

3 years ago

___________________ includes the process, content, and outcome of refreshment or replacement of attributes that have the potenti

Effectus [21]

Answer:

Strategic renewal

Explanation:

<u>Strategic renewal </u> includes the process, content, and outcome of refreshment or replacement of attributes that have the potential to substantially affect its long-term prospects in a company. It is also the process of change and the outcome of adjustment in strategic direction that has the vital potential to determine the long-term competitiveness of a company in its industry

4 0

3 years ago

The following information pertains to Crane Video Company:

Mashutka [201]

Answer:

Prepare Bank Reconciliation Statement

Balance at Bank as per Cash Book - Up to date $7,972

Less Lodgements not yet credited : ($1,300)

Add Unpresented Cheques $591

Balance as per Bank Statement $7,263

Adjusting Entries

J1

Bank service charge $28 (debit)

Cash $28 (credit)

J2

Cash $700 (debit)

Note - Receivable Crane $700 (credit)

J3

Cash $36 (debit)

Interest Income $36 (credit)

J4

Service Fee $20 (debit)

Cash $20 (credit)

Explanation:

First Update the Cash Book as follows:

<u>Debit :</u>

Cash balance $7,284

Crane $700

Interest $36

Totals $8,020

<u>Credit:</u>

Bank service charge $28

Crane : fee $20

Balance - Up to date $7,972

Totals $8,020

Then, Prepare Bank Reconciliation Statement

Balance at Bank as per Cash Book - Up to date $7,972

Less Lodgements not yet credited : ($1,300)

Add Unpresented Cheques $591

Balance as per Bank Statement $7,263

Adjusting Entries

J1

Bank service charge $28 (debit)

Cash $28 (credit)

J2

Cash $700 (debit)

Note - Receivable Crane $700 (credit)

J3

Cash $36 (debit)

Interest Income $36 (credit)

J4

Service Fee $20 (debit)

Cash $20 (credit)

7 0

3 years ago

the role of the develpoed nation in helping the developing nations for sustainable develpoment of natural resources???pls help.

tigry1 [53]

Answer:

Developed nations have an economic and moral responsability to help developing contries achieve sustainable development goals not only because developed nations have more money, but also because they are the main originators of climate change.

For this reason, developed nations should give funds to developing nations in order to fund projects such as solar, wind, geothermal, and nuclear power plants, and they should also provide technical assistance, since the population of developed nations tends to be more educated than that of developing nations.

7 0

3 years ago