the government banking regulation that places an upper limit on the money supply is a. deposit insurance by the fdic. b. reserve requirements on bank deposits. c. periodic bank examinations and audits. d. limitations on the types of assets that a bank may own.

Answers

Answer 1

B) Reserve requirements on bank deposits are a government financial regulation that sets a ceiling on the amount of money in circulation.

How does financial regulation work?

Maintaining the integrity of the financial system is one of the fundamental goals of creating financial laws. When a bank fails, it cannot fulfill its obligations to depositors or other creditors, which may have negative effects on the economy as a whole.

Financial regulations enforce pertinent laws, prosecute incidents of market misconduct, license financial service providers, safeguard clients, and look into complaints in order to maintain public confidence in the financial system.

We all rely on the financial system in some manner, whether it's for accessing savings and credit, financing purchases like homes or insurance, or receiving compensation when something goes wrong.

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for five years, willard insurance group offered $500 bonuses to individuals who identified ways to reduce costs by at least $1,000 per year. in the first year of that incentive program, 31 employees earned the bonus, but last year, only 14 submitted ideas, and only three of the ideas would actually save more than a few dollars. the company's hr director suggests that the company is likely to see more improvement if it replaces individual incentives with a gainsharing plan. which statement best supports this argument? group of answer choices gainsharing measures oversimplify the complex responsibilities of production work. gainsharing succeeds regardless of whether employees understand how performance is measured. gainsharing broadens employees' horizons beyond the range of activities they can influence. gainsharing is likely to succeed under almost any organizational conditions. gainsharing expands employees' thinking beyond their individual interests.

Answers

Based on the benefits of gainsharing and this scenario, the best statement to support this argument is e. Gainsharing expands employees' thinking beyond their individual interests.

What is an example of gainsharing?

Gainsharing allowed for the production of the subsequent $1,000,000 worth of axle output and shipment in just 9,000 hours. The 1,000 hours saved are worth $10,000 if the hourly salary is $10. The workforce and the firm should split the benefit equally.

What advantages does gainsharing offer?

Gainsharing plans encourage employees to give their best efforts and instill a sense of pride in their professional accomplishments in them. As a result, there are indirect advantages such as lower levels of employee attrition and consequently less time and money required to train new hires.

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non-shareable financial pressures are one leg of the fraud triangle. which of the following is not an example of a non-shareable financial pressure? a. problems arising from personal failures b. a strong work ethic c. poor employer-employee relations d. business reversals

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Business reversals is not an example of a non-shareable financial pressure.

What is fraud triangle?According to the Fraud Triangle theory, if all three elements—unshareable financial need, apparent opportunity, and rationalization—are present, a person is very likely to engage in fraudulent behavior.The fraud triangle includes more than just having a fictitious, unshareable financial need. The employee must believe he can handle his financial position in secret before taking the next step toward committing fraud.While neutralization is the basis for forming justifications prior to committing a crime, rationalization can be deployed to masquerade the main motivation after committing the crime. Rationalization is aimed at making a case for why the actions make sense.According to the idea, there are three elements that when combined, result in fraudulent behavior.

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Which of the following is NOT included in finance charges?

A: Change of address fees
B: Overdraft fees
C: Annual fees
D: Late fee charges

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The Late fee charges  is not included in finance charges.

A late fee is a charge imposed on a consumer who fails to make the payment on a debt or other financial obligation by the due date.

The finance charge does not include any charge of a type payable in a comparable cash transaction.

The charge is not included from finance charge are application fees charged to all applicants, charge for late payment, seller's point, real- estate related fees.

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company sunland sells $2400 of merchandise on account to company wildhorse with credit terms of 1/10, n/30. if company wildhorse remits a check taking advantage of the discount offered, what is the amount of company wildhorse's check? $2220 $2376 $2310 $2130

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B) If the company Wildhorse sends a check using the cash discount provided, the check's total will be $2,376, according to the agreement.

A cash discount is what?

Cash discounts are incentives provided by sellers that lower the amount that the buyer owes by a set dollar amount or by a predetermined percentage of the total bill. If an invoice has a 30-day payment term, for instance, the seller can grant the buyer a standard cash discount of 2% in exchange for paying the invoice within the first 10 days of receiving it.

Small cash discounts help the seller since they make it more likely that the buyer would make a prompt payment. Therefore, cash discounts give the seller access to funds more quickly; on occasion, it may be preferable to get 95% of an invoice within a few days rather than having to wait 30 or more days for the remaining balance.

Early payment enables the seller to use the funds to reinvest in the company more quickly.

Calculation:

The following chart illustrates how the Concord Company check's amount was calculated:

= Discount from the item's sale price

= $2,400 - ($2,400 × 1%)

= $2,400 - $24

= $2,376

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rachel owns 100 percent of a gift shop with an equity value of $150,000. if she keeps the shop open 5 days a week, ebit is $75,000. if the shop remains open 6 days a week, ebit increases to $92,000 annually. rachel needs an additional $50,000 which she can raise today by either selling stock or issuing debt at an interest rate of 7 percent. the principal amount would be repaid in equal annual payments at the end of the next five years. ignore taxes. what will be the cash flow for the next year to rachel if she issues stock to another individual, remains open 6 days a week, and distributes all the residual cash flow to the shareholders?

Answers

The cash flow for the next year to Rachel if she issues stock to another individual, remains open 6 days a week will be option B which is $88500.

Gift shops are open 6 days a week,

EBIT = $92000

Debt = $50000 issued at 7% of interest

Interest = 50000 × 7% = 3500

Residual Cash Flow to shareholders

= EBIT - Interest

= 92000 -  3500

= 88500

Hence the cash flow for the next year to Rachel if she issues stock to another individual, remains open 6 days a week, and distributes all the residual cash flow to the shareholders is $88500.

Earnings before interest and taxes (EBIT) are a typical proportion of an organization's working productivity. As its name recommends, EBIT is an overall gain barring the impact of obligation interest and expenses. Both of these expenses are genuine money costs, yet they're not straightforwardly produced by the organization's center business tasks

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on september 1, 2024, daylight donuts signed a $189,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on march 1, 2025. daylight donuts should report interest payable at december 31, 2024, in the amount of:

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When interest-bearing short-term notes payable mature, the interest is typically paid on the same day. However, the terms of long-term notes frequently require periodic interest payments.

The note's capital is $100,000. The annual interest rate is 9%. Interest for a year is equal to $100,000 0.09 $9,000 Interest per month is equal to $9,000 / 12 $750 Interest due on December 31, 2021, is equal to $750 4 months $3,000 The remaining interest expense, which is equal to $100,000 0.09 6/12 = 4,500 $3,000 = $1,500, will be incurred in 2022.

Interest payments are almost always required for notes payable. It is necessary to accumulate the unpaid interest on the debt for the time it has been outstanding. Interest accrual results in a cost and a liability. For interest payable, a different liability account is used so that it can be identified separately.

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Explain when (if at all) the asset or liability would require subsequent measurement at fair value. Cite the supporting Codification paragraph(s). Do not include excerpts from the Codification. Additionally. if fair value measurement is subsequently required or allowed, explain the likely level of the fair value hierarchy (Level 1, 2, or 3) to be used and the valuation technique (market, cost, or income) that would most likely apply.

At fiscal year-end, a company has an equity investment that gives the company significant influence over the investee, but not control over the investee.

Answers

As per IFRS 13, subsequent fair value measurement is required of those assets and/or liabilities that are subjected to being carried forward at fair value. For example, in case a fixed asset is measured using the revaluation model, the asset will have to be measured at fair value and subsequently the initial recognition.

Few examples of when subsequent fair value measurement is done:

Financial Intruments are measured at fair value through OCI or through profit or loss.Property, plant, and equipment were measured using the revaluation model.Investment properties are measured using a fair value model.

There are three levels that are used for fair value measurement.

Level 1 - Quoted price for an identical asset in the active market.Level 2 - Quoted price for a similar asset in the active market or unquoted price of the identical asset in the passive marketLevel 3 - Best estimate or significant unobservable inputs e.g. discounted cash flows

Codification helps to discourage the municipal legislative body from enacting redundant or inconsistent new ordinances, and shall we the council or board view the frame of law as an entire and notice any gaps in insurance which may need regulation. the first everlasting system of codified laws might be observed in imperial China, with the compilation of the Tang Code in advert 624. The codification is prepared in a tiered shape.

This code system wonderful the 2 gadgets separately through the items of comparable names. Codification enables the organization to bring buying commands without difficulty and quickly and divide the shopping department into commodity sections each engaged within the buying of a selected range of shops. The linguistic term codification refers to the strategies by using which a language is standardized. these techniques encompass the advent and use of dictionaries, fashion and utilization courses, conventional grammar textbooks, etc

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what happened within three years after millercoors hired an it services firm to help them replace seven different instances of their sap erp systems with one consolidating instance?

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What happened three years after MillerCoors hired a service company to help them replace seven different examples of their rubber system with one example of consolidation was launching a more unified structure designed to serve the entire company.

A service company is a business that has production activities whose products are intangible or services and aims to meet the needs of consumers and make a profit.

In everyday life there are many examples, one of which is public transportation services. With this company, people are helped to travel from one place to another. With increasingly advanced technology, these services can now be ordered with an online application. Consumers can order transportation services and deliver them to their destination using only their smartphone. You can even send goods or order food through the online application.

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When High Horizon LLC was formed, Maude contributed the following assets in exchange for a 25 percent capital and profits interest in the LLC:

Basis Fair Market Value
Maude:
Cash $ 27,000 $ 27,000
Land* 135,000 402,250
Totals $ 162,000 $ 429,250
*Nonrecourse debt secured by the land equals $178,500

James, Harold, and Jenny each contributed $250,750 in cash for a 25 percent profits and capital interest.

1.What is Maude’s tax basis in her LLC interest?
2.What tax basis do James, Harold, and Jenny have in their LLC interests?
3.What is High Horizon’s tax basis in its assets?
4.Prepare a tax basis balance sheet for the High Horizon LLC showing the tax capital accounts for the members.

Answers

Maude's initial basis in LLC is $60,125

The tax basis that James, Harold, and Jenny have in their LLC interests is $217,000

High Horizon’s tax basis in its assets is $779,250.

What is Maude’s tax basis in her LLC interest?

Basis prior to debt relief = Basis in Land contributed + Cash contributed + Nonrecourse mortgage in excess of basis in land + Remaining nonrecourse mortgage

= $135,000 + $27,000 + ($178,500 - $135,000) + ($178,500 - $43,500 *  25% partner interest)

= $135,000 + $27,000 + $43,500 + $33,750

= $239,250

Maude Tax Basis in LLC interest = Basis prior to debt relief - Relief from mortgage debt

= $239,250 - $178,500

= $60,750

What tax basis do James, Harold, and Jenny have in their LLC interests?

Tax basis = Cash contributed $250,750 + Remaining nonrecourse mortgage $33,750 (calculated in (b))

= $217,000

What is High Horizon’s tax basis in its assets?

High Horizon takes $135,000 carryover basis in Land Maude contributed and $779,250 basis in cash contributed by the other partners. Note: Cash by Jamie, Harold and Jenny ($250,750 x 3) + Cash contributed by Maude $28,000 = $752,250 + $27,000 =  $779,250.

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should the government use monetary and fiscal policy in an effort

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Fiscal policy typically affects consumers more than monetary policy when the two are compared.

Is it better to use fiscal or monetary policy?Given that it can result in more employment and income, fiscal policy typically has a greater impact on consumers than monetary policy.Governments drain money from the economy and stifle business development through raising taxes.It is best to combine monetary and fiscal policies.Fiscal policy can directly put money into or take money out of people's pockets, whereas monetary policy impacts financial conditions and the amount of bank reserves. Fiscal policy alters governmental spending and taxation, which impacts overall demand.These variables affect household income and employment, which in turn affect consumer spending and investment.Money supply in an economy is impacted by monetary policy, which in turn affects interest rates and inflation.

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Which of the following terms apply to a bond?
A. Par Value
B. Coupon Rate
C. Dividend Yield
D. Time to Maturity

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Time to Maturity is a term that applies to a bond.

A transaction's or financial instrument's maturity is the point at which its existence ends, after which it...

In order to attract new investors, financial institutions occasionally change maturity dates for a brief period of time. A bank may provide a greater rate of return for a short-term certificate of deposit (CD) while offering promotional CDs. The promotional CD will often renew at the speed and terms specified when it reaches maturity.

Maturity is the agreed-upon time when the investment finishes, frequently leading to the payback of the investment.

Despite being used for deposits, currencies, interest rate and commodity swaps, options, loans, and other transactions, it is most frequently used in reference to bonds.

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though the responsibility for making fiscal policy lies with___, and the administration of fiscal policy occurs primarily in the ____
a. the president, Federal Reserve Board
b. the president, Treasury Department
c. Congress, Treasury Department
d. Congress, Department of Commerce

Answers

Though the responsibility for making fiscal policy lies with Congress, and the administration of fiscal policy occurs primarily in the Treasury Department.

Fiscal policy refers to the tax and spending policies of the federal authorities.

Financial policy choices are determined by means of Congress and the management; the Fed performs no function in determining fiscal coverage.

Within the united states of America, financial coverage is directed via both the government and legislative branches of the government.

Within the govt branch, the President and the Secretary of the Treasury, often with financial advisers' recommend direct fiscal regulations.

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In the 1950s, imports and exports of goods and services constituted roughly 4% to 5% of u. S. Gdp. In recent years, exports have accounted for approximately 12% of gdp, while imports have more than tripled to over 15% of gdp.

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As given that the imports and exports of goods and services constituted roughly 4% to 5% of the GDP and In recent years, the exports have accounted for approximately 12% while imports have more than tripled to over 15%, the statement that explain the increase in international trade and finance since the 1950s includes:

B. Better high-speed rail linesC. Improvements in telecommunicationsD. International trade agreements such as the North American Free Trade Agreement (NAFTA)

What is an international trade?

Basically, an international trade refers to an economic transactions that are made between countries. Among the items being traded are consumer goods such as television sets and clothing, capital goods, such as machinery and raw materials and food. Most international trade transactions are facilitated by an international financial payments in which the private banking system and the central banks of the trading nations play important roles.

To the United States, an international trade is important to its prosperity because its fuels economic growth, supports good jobs at home, raises living standards and helps Americans provide for their families with affordable goods and services.

Missing options 'Which of the following help to explain the increase in international trade and finance since the 1950s? Check all that apply. An increasing number of import quotas. Better high-speed rail lines, Improvements in telecommunications, International trade agreements such as the General Agreement on Tariffs and Trade (GATT)"

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the makers of red bull energy drink want to generate earned media and create associations between the brand and popular culture. which of the following types of media vehicle may be particularly useful in this strategy?

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Sponsorship of the Cliff Diving World Series media vehicle may be particularly useful in this strategy.

The Red Bull Cliff Diving World Series is an annual worldwide series of cliff diving competitions that Red Bull founded in 2009. A select group of participants determines the Cliff Diving World Series champion.

Everywhere in Red Bull Cliff Diving World Series, Slingshot Sponsorship created a cutting-edge marketing campaign for a female sports brand with roots in Norway.

Slingshot Sponsorship recognized a huge potential that was being passed up regarding the introduction of women to the event the next year because to the event's massive global viewership.

Slingshot Sponsorship developed a PR campaign around a series of "teaser-dives" from notable spots throughout Norway in the lead-up to the cliff-diving series after forming a collaboration between the female sportswear company Kari Traa and the cliff-diving superstar, Ana Bader.

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a customer with no other mutual fund investments wishes to invest $47,000 in the windmill growth fund. if the class a shares are eligible for a breakpoint sales charge discount at the $50,000 investment level, the action least appropriate for an agent is to

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If the class a shares are eligible for a breakpoint sales charge discount at the $50,000 investment level, the action least appropriate for an agent is to  place the order as instructed.

What does a business discount mean?

A business will give a product or service at a discounted price as a sales discount. Find out how to add discounts to invoices. Customers of a business receive a discounted price on one or more of the goods or services being supplied when they take advantage of a sales discount, sometimes known as simply a "discount."

What does "discount" signify in marketing?

Discounts are price cuts applied to the regular cost of a good or service in an effort to generate or boost sales. Retailers and manufacturers work together to offer these discounts, which are also frequently referred to as "sales" or markdowns, in a variety of industries.

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select all that apply in which situations does a company issue a note receivable? (check all that apply.)

Answers

The business lends money to businesses or employees.

The company extends the payment period and charges interest as an exception for a customer who is struggling financially.

A note receivable is issued by a company in which circumstances?

The business lends money to businesses or employees. By converting an existing account receivable, the company gives the customer more time to pay the debt plus interest.

In accounting, what are notes receivable?

A note receivable is an asset account linked to an underlying promissory note that specifies in writing the payment terms for a purchase between a "payee" (typically a company, sometimes referred to as a creditor) and the "maker" of the note (typically a customer or employee, sometimes referred to as a debtor). This account is linked to an asset account.

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Full Question = In which situations does a company issue a note receivable? (Check all that apply.)

firms that grow quickly may seem less risky/more likely to succeed; therefore fast growth may help an entrepreneur extract better ownership terms from potential investors.
a. true
b. false

Answers

Firms that grow quickly may seem less risky/more likely to succeed; therefore fast growth may help an entrepreneur extract better ownership terms from potential investors. true

An entrepreneur is a character who identifies a need within the market and works to satisfy it. The time period, traditionally, has been applied to a person who starts offevolved an enterprise, seeing the ability to meet that recognized need as a financial opportunity.

Schumpeter is nicely recognized for his theories on business cycles and the development of capitalist economies, and for introducing the concept of entrepreneurship.

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three pigs construction wants to purchase three new machines to make construction faster. the cost of the machines is $260,000. the net cash flows resulting from the investment are as follows: year 1: $90,000; year 2: $80,000; year 3: $80,000; year 4: $75,000. compute the payback period for this project.

Answers

The payback period for this project is of 4 years.

What is the payback period?The time it takes to recoup the cost of an investment is referred to as the payback period. It is simply the amount of time it takes an investment to break even. The payback period is crucial since people and businesses invest money primarily to be reimbursed.

So, the payback periods are:

The investment is $260,000.

Then the payback periods will be:

3 years 90,000 + 80.000 + 80,000 = $250,000

Now, add the cash flow of the 4th year:

250,000 + 75,000 = $3,25,000

Therefore, the payback period for this project is of 4 years.

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A monopolistically competitive firm in the long run will produce an amount that is _______ the quantity where average cost is at a minimum and charge a price that is _______ marginal cost.

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The complete statement is "A monopolistically competitive firm, in the long run, will produce an amount that is less than the quantity where the average cost is at a minimum and charge a price that is Greater than marginal cost."

What is marginal cost?

Generally, The change in the overall cost that occurs as a result of an increase in the amount produced is referred to as the marginal cost. This term is used in economics to refer to the cost of producing an extra quantity.

In conclusion, The whole sentence reads as follows: "In the long term, a monopolistically competitive company will produce an amount that is less than the quantity where the average cost is at a minimum and charge a price that is more than the marginal cost."

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companies a and b are in the same industry and are identical except for cost structure. at a volume of 50,000 units, the companies have equal net incomes. when sales at both companies increase to 60,000 units, company a's net income would be substantially higher than b's. based on this information,

Answers

Last option is correct.

Moreover, If at a volume of 50000 units, both companies have equal net income and at 60000 units, Company A's net income is substantially higher than B, it means "Company A's cost structure has higher fixed costs then B's". Hence last option is correct.

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what benefits do private and public interests bring to society? what are some disadvantages of private and public interests?

Answers

Private interests often lobby the government for particularized benefits, which are narrowly distributed. These benefits usually accrue to wealthier members of society.

They give citizens access to private and collective goods. Public goods are often underfunded and underproduced, and some private goods are unfairly distributed among elites.

Poor people may also have lower levels of effectiveness. This refers to the belief that you can make a difference or that the government cares about you and your opinion. People who are less efficient are less likely to participate in politics, such as voting or joining interest groups. Public goods offer special benefits, while private goods are more diversified. Public goods provide broad utility and private goods provide specific utility.

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_____ is a form of licensing in which a firm contracts with another firm to operate a business under an established name according to a specific set of rules.

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A franchise (or franchising) s a form of licensing in which a firm contracts with another firm to operate a business under an established name according to a specific set of rules.

what is a franchise?A franchise (or franchising) is a technique of selling goods or services that involves a franchisor who creates the brand's trade name and business model and a franchisee who pays a royalty and frequently an upfront fee to have the right to use the franchisor's name and system. The term "franchise" technically refers to the agreement that binds the two parties, but it is more frequently used to describe the business that the franchisee runs. The process of developing and disseminating a brand and franchise network is known as franchising.Franchise connections can be of two different forms. Commercial Format The most recognizable type is franchising. In a business format franchise, the franchisor not only offers its trade name, goods, and services to the franchisee, but also a full system for running the business.

Hence,A franchise (or franchising) s a form of licensing in which a firm contracts with another firm to operate a business under an established name according to a specific set of rules.

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Which term i taken to explain a collection of web ervice that facilitate interaction of web uer with ite to create uer-generated content and encourage behaviour uch a community or ocial network participation

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The phrase "Web 2.0" refers to a group of web services that allow web users to engage with sites in order to develop user-generated content and encourage behaviors.

A web service is a generic word for an interoperable machine-to-machine software function that is hosted at a network addressable location. A web service has an interface that hides the implementation details so that it can be used regardless of the hardware or software platform on which it is implemented or the programming language in which it is written. This freedom encourages web service-based systems to be loosely linked, component-oriented, cross-technology implementations.

Web services can be used alone or in conjunction with other web services to carry out complex aggregation or business transactions. Tools can be used to process the WSDL and generate client programs capable of talking with the service using the XML-based SOAP protocol.

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in the 20th century, american companies began to produce more goods than buyers could consume. at the same time competition became more significant so companies used aggressive selling techniques to rid themselves of excessive inventory. this describes

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In the 20th century, American companies started to produce more goods than buyers could consume. Meanwhile, competition became more significant so businesses used aggressive selling methods to rid themselves of excessive inventory. This describes 'the sale era'.

What is the Sales Era?

During the time period from 1920 to 1940, as the market began to become more saturated and intensified, competition increased among various businesses. This created a need for certain marketing and sales techniques. Businesses hoped through persuasion approaches that they could convince consumers to purchase their products.

This emphasizes the significance of the businesses that started to undertake aggressive sales approaches to sell or push their products and services, and the use of heavy public advertisements in all the available forms of media become prevalent.

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the journal entry to record the purchase of materials on account in process cost accounting is a(n):

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the journal entry to record the purchase of materials on account in process cost accounting is a debit Work in Process Inventory and credit Raw Materials Inventory.

Credit, which derives from the Latin verb credit, which means "one believes," is the trust that permits one party to give money or resources to another party, with the understanding that the second party will not immediately pay back the first party (thereby creating a debt), but will instead promise to pay back or return those resources (or other materials of equal value) at a later time. To put it another way, credit is a way to formalize reciprocity, make it enforceable by law, and extend it to a sizable number of unconnected persons.

The resources offered may take the form of money (such as the granting of a loan), commodities, or services (e.g. consumer credit). Any type of deferred payment is considered credit. Credit is given to a debtor by a creditor, sometimes referred to as a lender.

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consider an oligopoly industry whose firms have identical demand and cost conditions. if the firms decide to collude, then they will want to collectively produce the amount of output that would be produced by: multiple choice a pure competitor. a monopolistic competitor. a pure monopolist. none of these is correct.

Answers

Consider an oligopoly industry whose corporations have same demand and price conditions. If the firms figure out to collude, then they will want to collectively produce the quantity of output that would be produced by: A pure monopolist.

What type of oligopoly if the merchandise produced by means of quite a number types are identical?

the merchandise of pure oligopolists have a tendency to be similar. A pure oligopoly is characterised by way of the existence of a small number of large corporations which produce homogeneous products. E.g. Steel, Aluminium.

Why do oligopolies often collude?

In an oligopoly, no single firm enjoys a giant quantity of market power. Thus, no single firm is in a position to raise its fees above the charge that would exist underneath a best competition scenario. In an oligopoly, all companies would want to collude in order to raise fees and understand a higher monetary income

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each morning the controller gets the prior day's list of remittances, a copy of the payment report, and a copy of the deposit slip returned from the bank. when comparing these items, the controller would be able to determine that

Answers

The amount on the deposit slip would not match the remittances or the payments reported if the cash received was not deposited in its entirety or remittances were not posted.

What is payment report?Based on the payments and refunds in the system, the payments report shows a summary of payments, donations, and refunds, or your cash flow transactions. The income report, which lists all invoices created within the given time period, whether paid or not, differs from the payments report.For a certain period range, the payment analysis report shows how, when, and what kinds of payments are received at your clinic.The goal of preventive controls is to lessen the likelihood of errors and fraud before they happen, and they frequently center on the idea of separation of roles. Preventive controls are crucial from the perspective of quality because they are proactive and centered on quality.

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you are purchasing a used car and will make 5 annual payments of $3,500 starting one year from today. if your funds could be invested at 9%, what is the present value of the care? (round answer to nearest dollar) $20,946 $13,614 $14,839 $17,500

Answers

The present value of the car is $13,614 for funds invested at 9% and annual payments of $3,500 starting one year from today.

Using the Excel Present Value formula, which reads as follows, one can calculate the car's present value:

The formula is PV (rate, n per, PMT, fv, type)

where as,

After that rate is 9%

In that case, n per is equal to 5 years.

The PMT now requires $3,500 in annual payments.

FV then stands for Future Value, which is not provided.

But Type is 0

Then we are putting the values of annual payments above:

Now put the value is = PV(9%,5,-3500,0)

After that = $13,613.78 or $13,614

Consequently, the car's present value is $13,614 in total.

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on march 1, 2021, sunshine paid $102,000 for a new copy machine. it was estimated that the machine would produce 850,000 copies over the next 5 years, at which time it could be sold for $17,000.the copy machine made the following number of copies during its life: 2021 110,000 copies 2022 168,000 copies 2023 154,000 copies 2024 143,000 copies 2025 87,500 copies it was sold on june 1, 2025 for $18,500. assume that sunshine uses the straight line method of depreciation. what would the effect be on its 2022 balance sheet if sunshine neglects to use salvage value in its depreciation calculation:

Answers

Its depreciation expense calculation is $7,480.

Calculation of 2021 depreciation expense:

Cost = $102,000

Date of purchase = March 1, 2021

Useful life = 5 years

Double declining balance method

Depreciation for 2015

Depreciation expense = cost x depreciation rate

Depreciation rate = 200% x 1/useful life = 200% x 1/5 = 40%

Depreciation expense = $102,000 x 200% x 1/5 = $40,800

Depreciation expense for March 1 – Dec 31 = 40,800 x 10/12 = $34,000

Book value, Dec 31, 2015 = $102,000 – 34,000 = $68,000

Depreciation expense, 2016 = book value x depreciation rate

Depreciation expense, 2016 = 68,000 x 40% = $27,200

Accumulated depreciation = 34,000 + 27,200 = $61,200

Book value = 102,000 – 61,200 = $40,800

Depreciation expense, 2017 = book value x depreciation rate

Depreciation expense, 2017 = 40,800 x 40% = $16,320

Accumulated depreciation =34,000 + 27,200 + 16,320 = $77,520

Book value = 102,000 – 77,520 = $24,480

Depreciation expense, 2018 = book value x depreciation rate

Depreciation expense, 2018 = 24,480 x 40% = $9,792

Accumulated depreciation  = 34,000 + 27,200 + 16,320 + 9,792 = $87,312

Book value = 102,000 – 87,312 = $14,688

However, the book value of asset cannot be lower than its residual value, which is $17,000

Hence depreciation expense for 2018 is adjusted accordingly.

Depreciation expense, 2018 = 2017 book value – residual value

= 24,480 – 17,000 = $7,480

Hence, depreciation expense for 2018 = $7,480

The time period depreciation refers to an accounting approach used to allocate the cost of a tangible or physical asset over its beneficial life. Depreciation represents how plenty of an asset's fee has been used. It permits agencies to earn sales from the assets they personal by paying for them over a sure time period.

Depreciation is a term that refers to 2 components of the same concept: first, the actual lower of truthful value of an asset, which includes the lower in cost of manufacturing unit system every 12 months

Agencies report depreciation as a periodic price on the profits assertion. property lose price as they depreciate over time. There are 4 most important methods used to calculate depreciation: instantly-line, gadgets of manufacturing, double declining stability and sum of the years' digits.

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When a commercial bank receives a deposit, it must keep part of the deposit as cash reserves to satisfy its
A) securities and loans.
B) required reserves.
C) excess reserves.
D) interbank loans.
E) loan requirements.

Answers

When a commercial bank receives a deposit, it must keep part of the deposit as cash reserves to satisfy its required reserves.

What is Reserve Requirements?

In order to match consumer deposits, banks are required to hold a certain quantity of cash in their vaults or at the nearby Federal Reserve bank. One of the three basic instruments of monetary policy, together with open market operations and the discount rate, is the reserve requirement, which is determined by the board of governors of the Federal Reserve.

Another tool at the Fed's disposal to manage liquidity in the banking system is the reserve requirement. The Fed implements an expansionary monetary policy when it lowers the reserve requirement, and a contractionary monetary policy when it raises the requirement. This latter step reduces liquidity and causes the economy to slow down.

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