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2 years ago

7

True or false: If Dogs R Us overstates ending inventory on the balance sheet, then total equity on the balance sheet will be ove

rstated as well.

1 answer:

ANEK [815]2 years ago

6 0

Answer:

True

Explanation:

The statement is true

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Consider an economy described by the following equations:

Ede4ka [16]

Answer:

a. exchange rate = 1

b. exchange rate = 1.5

Explanation:

(a) National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1000 = 0

National saving = 750 + 0

= 750

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1000 - 750 = 0

Thus Trade Balance = 0

NX = 0 => NX = 500 – 500e = 0

=> e = 1

Thus exchange rate = 1

(b)

National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1250 = -250

National saving = 750 - 250

= 500

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1250 - 750 = -250

Thus Trade Balance = -250

NX = -250 => NX = 500 – 500e = -250

=> e = 750/500 = 1.5

Thus exchange rate = 1.5

8 0

3 years ago

If the month-end bank statement shows a balance of $36,000, outstanding checks are $10,000 , a deposit of $4,000 was in transit

sukhopar [10]

Answer:

The correct answer is C

Explanation:

The amount of correct balance which is shown in the bank account at the month end is:

= Month end balance - Outstanding balance + Deposit in transit at month end + Check which was erroneously charged by bank

= $36,000 - $10,000 + $4,000 + $600

= $26,000 + $4,600

= $30,600

Therefore, the month end balance amounts to $30,600 in the bank account.

4 0

2 years ago

Bond P is a premium bond with a 10 percent coupon. Bond D is a 5 percent coupon bond currently selling at a discount. Both bonds

ale4655 [162]

Let Bond par value be 1000

Bond P:

Coupon rate=10%

YTM=7%

time=9 years

Calculation of current price:

Particulars Year Amount PV Factor YTM=7% Present value

Ineterest 1-9 years 100 6.515232 651.52

Value 9 1000 0.543934 543.93

1195.45

Current price =1195.45

Current yield=Annual interest based on coupon rate*100/current price

The current yield of Bond P=100*100/1195.45=8.37%

Bond D:

Coupon rate=5%

YTM=7%

time=9 years

Calculation of current price:

Particulars Year Amount PV Factor YTM=7% Present value

Interest 1-9 years 50 6.515232 325.76

Value 9 1000 0.543934 543.93

869.69

Current price =869.69

Current yield=Annual interest based on coupon rate*100/current price

The current yield of Bond D=50*100/869.69=5.75%

Capital gains yield

current price bond P=1195.45

Next year's price bond P=100°5.971299+1000*0.582009=1179.14

The capital gain yield on bond P=(next year price-current price)/current price

=(1179.14-1195.45)/1195.45

=-1.36%

current price bond D=869.69

Next year's price bond D=505.971299+1000*0.582009=880.57

The capital gain yield on bond D=(next year price-current price)/current price

=(880.57-869.69)/869.69

=1.25%.

Learn more about premium bonds at

brainly.com/question/24126427

#SPJ4

6 0

1 year ago

Can a business succeed without having ALL four of the Factors of Production (Land, Capital, Labor and Entrepreneurs)? Why or why

NNADVOKAT [17]

The answer is Yes.
A business can run properly and the problems are solved considering only labor and capital and sometimes land in the production process.

3 0

3 years ago

An existing customer of an agent who is registered in State Z contacts the agent to inquire about selling 1,000 shares of ABCC C

MissTica

Answer: considered to be an offer to buy made by the agent

Explanation:

An offer to buy simply means a proposal made by a buyer to buy an asset, and this becomes legally enforceable once the person who intends to buy the asset accepts the offer made by the seller.

In this case, the agent has contacted the existing client to know if he is interested in selling these shares and once the seller agrees, the shares will be sold at an agreed price.

5 0

3 years ago