According to the buying power parity theory, exchange rates between two nations will eventually shift to reflect the disparities in their respective price levels.
Which is true about purchasing power parity Mcq?According to the buying power parity principle, exchange rates will eventually shift to reflect the variations in price levels between two nations.According to the purchasing power parity (PPP) hypothesis, when two currencies' purchasing power is equal in both of their respective countries, exchange rates are in equilibrium.The economic theory of exchange rate determination known as purchasing power parity (PPP). According to this, there should be parity between two nations' price levels.The cost of things will be the same in all countries once the currencies have been converted, according to this.According to the absolute version of PPP, when assessed in a single currency, the costs of comparable goods from two distinct countries should be equal.To learn more about purchasing power parity refer
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which of the following are ways that a firm can reduce cash flows in order to prevent managers from wastefully spending excess cash flows? check all that apply. increasing the amount of debt in the firm's target capital structure in the hope that higher debt-service requirements will force managers to be more disciplined funneling excess cash flows back to shareholders through stock repurchases funneling excess cash flows back to shareholders through higher dividends
Increase the amount of debt in the target capital structure of the company in the hopes that stricter management will result from the increased debt-service obligations. Reverse the surplus cash flow by repurchasing stock to return it to the shareholders.
When a publicly traded corporation buys its own shares in the market, it is known as a share repurchase or buyback. Share repurchases are another method by which a firm can give money back to its shareholders in addition to dividends. It's typically a good indication when a firm buys back shares since it shows that it thinks its stock is undervalued and is optimistic about its future financial performance. The finest businesses frequently increase their dividend payouts and purchase back shares in an effort to reward their shareholders. Because a share repurchase lowers the quantity of a company's freely traded shares, or float, it is also known as a float shrink.
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if the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a variance. a.price b.quantity c.rate d.time
If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is a time variance.
What is the controlled variance quillet measuring?Since the controllable variance assesses the effectiveness of using variable overhead resources, it is advantageous if budgeted variable overhead exceeds actual outcomes. Standards are applied to manufacturing costs less frequently than to non-manufacturing expenditures.
Which of the following accounts for a negative variance in fixed factory overhead volume?When the actual amount spent on fixed manufacturing overhead expenses exceeds the projected amount, a negative fixed overhead budget variance is the outcome.
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true or false? oligopolistic markets generally consist of a greater number of firms than monopolistically competitive markets.
Oligopolistic markets generally consist of a greater number of firms than monopolistically competitive markets. Thus, the given statement is true.
What is an oligopolistic market?In oligopoly marketplaces, a limited number of providers control the market. They are present in every nation and a wide variety of industries. While some oligopoly markets are much more competitive than others, others might at least appear to be so. High obstacles to entry, the capacity to determine prices, firm interdependence, maximum revenues, product differentiation, and non-price competition are all traits of an oligopoly.
The process in oligopolistic enterprises often combines monopolistic and competitive inclinations. Oligopolies may be observed in a variety of industries, including the steel, aluminum, and automotive sectors.
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ultimate sportswear has $100,000 of 8% noncumulative, preferred stock outstanding. ultimate sportswear also has $500,000 of common stock outstanding. in the company's first year of operation, no dividends were paid. during the second year, the company paid cash dividends of $30,000. this dividend should be distributed as follows:
A dividend is a distribution of opportunity by a company to its shareholders. When a company get a profit or surplus, it is used to pay a portion of the profit as a dividend to shareholders. Any value that do not distributed is taken to be re-invested in the business.
Firstly we compute the amount of preferred dividend using this formula below:
Preferred Dividend formula = Par value * Rate of Dividend * Number of Preferred Stocks
Preferred Dividend formula = $100,000 x 8% = $8,000
Based on the scenario, we know that the total cash dividend that has been paid by a company is $30,000.
Then, the common stock dividends is calculate by this formula
The common stock dividends = Total dividends - Total preferred dividends
The common stock dividends = $30,000 - $8,000 = $22,000
Hence, the common stock dividends will be $22,000 and the preferred dividends will be $8,000.
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Eva received $60,000 in compensation payments from jazz corporation during 2022. Eva incurred $5,000 in business expenses relating to her work for jazz corporation jazz did not reimburse eva for any of these expenses. Eva is single and deducts a standard deduction of $12,950. Based on these facts, answer the following questions: use tax rate schedule for reference. Note: leave no answer blank. Enter zero if applicable. Round your intermediate and final answers to the nearest whole dollar amount. Required: assume that eva is considered to be an employee. What amount of fica taxes is she required to pay for the year? assume that eva is considered to be an employee. What is her regular income tax liability for the year? assume that eva is considered to be a self-employed contractor. What are her self-employment tax liability and additional medicare tax liability for the year? assume that eva is considered to be a self-employed contractor. What is her regular tax liability for the year?
a) If Eva is deemed an employee, she will be responsible for paying $4,590 in FICA taxes for the entire year.
b) Eva's ordinary income tax obligation for the year is $6,141 if she is assumed to be an employee.
c) Given that Extra Medicare is only levied if a single filer's income exceeds $200,000 and Eva is assumed to be a self-employed contractor, her self-employment tax due is $7,771. Her additional Medicare tax liability for the year is zero.
d) According to this scenario, Eva's regular tax obligation for the year is $3,466 if she is considered a self-employed contractor.
Tax liability is the sum subtracted from the individual's income. Every fiscal year, every person owes taxes to the government based on their tax brackets. It is calculated based on taxpayers' taxable income.
a)
However, FICA tax rates have stayed the same throughout the last few decades. Therefore, for a total FICA contribution of 15.3%, the employer and employee each contribute 7.65% of their income. You can multiply your gross pay by 7.65% to determine how much FICA tax you must pay.
So, For the employee portion of the income, FICA taxes are 7.65%.
FICA tax = $60,000 * .0765 = $4,590
b)
Income $60,000
Less: Standard Deduction -12,950
Taxable Income $47,050
Tax liability $6,141
Tax liability = $4,617.50 + ($47,050 - 40,125 at 22% over $40,125)
= $4,617.50 + ($6925 * .22)
= $4,617.50 + 1,523.50 = $6,141
Self-employment tax is 15.3% and consists of 1.45%+1.45% of both employee and employer Medicare tax and 6.20%+6.20% of both employee and employer Social Security tax.
c)
Self-employment income $7,771
Additional Medicare tax liability $0
Self-employment tax is 15.3% on 92.35% of self-employment income
Income $60,000
Less: Business expense -5,000
Net Income $55,000
92.35% of self-employment income ($55,000 * .9235) $50,792.5
Self-employment tax ($50,793 * .153 $7,771
Extra Medicare is only taxed if a single filer's income exceeds $200,000. An additional Medicare tax is levied at a rate of 0.9%.
d.
Income $60,000
Less: Business Expense -55,000
Net Income $55,000
Deduction for AGI (7.55% of 92.35% of AGI) -3,886
AGI 51,114
Less: Standard deduction -12,950
Gross Taxable income before QBI deduction 38,164
QBI deduction ($38,714 * .20 = $7,743) -7,633
Net taxable income 30,531
Tax liability 3466
WORKING NOTE:
The employer portion of the self-employment tax is 7.65%.
AGI deduction = $(55,000 * .9235) * .0765
AGI Deduction = $50,793 * .0765 = $3,886
Less than 20% of net self-employment income is deducted for QBI.
QBI Deduction = $38,714 * .20 = $7,633
Tax liability = $987.50 + ($30,531 - 9,875 at 12% over $9,875)
Tax Liability = $987.50 + ($20,656 * .12) = 987.50 + 2478.72
Tax Liability = $3,466.2 ≅ $3,466
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What are accruals give 2 examples?.
When a transaction takes place or a payment is made, accountants use the accrual accounting method to record revenue and/or expenses.
What is an accrual ?According to the accrual accounting technique, revenue or expenses are recorded when a transaction takes place rather than when a payment is paid or received. The matching principle, which states that revenues and expenses should be recognised in the same period, is followed by the approach.In other words, regardless of when money changes hands, the revenue made and expenses incurred are recorded in the company's journal. Cash basis of accounting, which records revenue when the products and services are actually purchased, is sometimes contrasted with accrual accounting.When money is produced and a corresponding revenue item is recognised, it becomes an asset known as accrued revenue. Cash is to be collected in a subsequent period when the amount is deducted from accumulated revenues.To learn more about accrual refer:
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a and b enter into a contract. a few days later, they agree to discharge each other from the contract. what has occurred? multiple choice a mutual repeal a mutual rescission a substituted contract a novation
A and B enter into a contract. A few days later, they agree to discharge each other from the contract.
This is a situation of Mutual Rescission.
In contract law, rescission are an equitable remedy that allows contractual party to cancel the contract. Parties might rescind if they are the victims of a vitiating factor, like as misrepresentation, mistake, duress, or undue influence. Rescission is the unwinding of a transaction.
What are the two types of rescission?
There are two kinds of rescission, namely rescission in equity and rescission de future. Also referred to as rescission ab initio, that is from the beginning, rescission in equity works by rolling back the contract to the initial state of affairs, before the parties in question accepted the terms of the contract.
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a manufacturer estimates its factory overhead costs to be $30,000 and machine hours to be 4,000 for the year. if the actual hours worked on production total 3,800 and the actual factory overhead costs are $28,000, what is the amount of the over- or underapplied factory overhead?
If a manufacturer estimates its factory overhead costs to be $30,000 and machine hours to be 4,000 for the year. The amount of the over- or underapplied factory overhead is :$500 overapplied.
How to find the over- or underapplied factory overhead?First step is to find the estimated overhead rate
Estimated overhead rate = 30,000/4,000
Estimated overhead rate = $7.5
Now let find the over- or underapplied factory overhead
Over- or underapplied factory overhead = ($7.5 x 3,800) -$28,000
Over- or underapplied factory overhead = $500 overapplied
Therefore the over- or underapplied factory overhead is $500 overapplied.
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boswell corp. has the following information in its financial statements: earnings before interest and taxes $20,000 common stock $40,000 tax expense $4,000 interest expense $5,000 additional paid-in capital $50,000 retained earnings $40,000 net income $11,000 what is the times interest earned ratio?
Given Boswell Corp. has the information about its financial statements:
Earnings before interest and taxes = 20000$
Common Stock = 40000$
Tax Expense = 4000$
Interest Expense = 5000$
Additional paid-in capital = 50000$
Retained Earnings = 40000$
Net Income = 11000$
The formula for Times interest earned ratio is:
(Net income + Tax Expense + Interest Expense) / Interest Expense
Times Interest Earned Ratio = (11000 + 4000 + 5000) / 5000
= 20000 / 5000 = 4.0
Therefore, the times' interest earned ratio is 4.
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question content area when the bonds are sold for more than their face value, the carrying amount of the bonds is equal to a.face value plus the unamortized premium b.face value plus the unamortized discount c.face value d.face value minus the unamortized premium
When the bonds are sold for more than their face value, the carrying amount of the bonds is equal to face value plus the unamortized premium.
What is the carrying value of the bonds when they are sold for more than their face value?Bond Premium, which occurs when a bond is sold for more than its face value, is the difference between the sale price and the bond's value. The corporation will, however, get more money than the bond's face value if the market interest rate is lower than 9% at the time the bond is issued.
The premium on bonds payable, bond premium, or premium is the amount paid for the bond (exclusive of interest that has already accrued) above its face value.
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answer the question on the basis of the following information. number of workers total product marginal product 0 0 --- 1 8 8 2 10 3 25 4 30 5 3 6 34 when four workers are employed
The marginal product of the 4th worker is (A) 7½ or 7.5.
What is the marginal product?The marginal product or marginal physical productivity of an input in economics, particularly in neoclassical economics, is the change in output that results from using one extra unit of a certain input, given that the quantities of other inputs are maintained constant.
The total product value is divided by the difference in labor to determine the marginal product of labor.
An excellent illustration of the marginal output of labor is a restaurant kitchen.
Without cooks, the restaurant will produce nothing.
The restaurant may produce 10 meals more after hiring one cook, resulting in a positive MPL of 10.
So, the marginal product of the 4th worker:
Marginal product: Total product/Number of workers
Marginal product: 30/4
Marginal product: 7.5
Therefore, the marginal product of the 4th worker is (A) 7½ or 7.5.
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Complete question:
Answer the question on the basis of the following information.
(Refer to the chart attached below)
The marginal product of the fourth worker
A. 7½ or 7.5.
B. 7.
C. 5.
D. cannot be calculated from the information given.
The development of sales goals and projected outcomes is part of which one of the following marketing activities?Select one:A. Sales fulfillmentB. Marketing planC. Market developmentD. Advertising and promotion
A component of the marketing plan is the creation of sales targets and anticipated results.
How would you define sales?A sale occurs when a buyer and a seller engage in a business transaction where the seller exchanges money for the sale of physical or intangible products , assets, or services .In a sale, there are at least two other parties. In broader terms, a sale or a contract between two or more parties, like the buyer and seller, can be considered.
What exactly do sales in company mean?Any transaction where money or value is transferred for the right to own an item or access to a service is referred to as a sale in regular commercial operations. Sales in an accounting context refers to a company's revenue from product sales.
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what are the assumptions and predictions of the simple quantity theory of money? does the simple quantity theory of money predict well
The simple quantity theory of money assumes that velocity and output are constant. If these two assumptions are correct, then changes in the money supply and changes in prices have a strictly proportional relationship.
Explain the quantity theory of money.
According to the quantity theory of money, the general price level of goods and services is directly proportional to the amount of money in the economy, also identified as the money supply.
The simple quantity theory of money is the theory that assumes velocity (V) and real GDP (Q) are constant and predicts that changes in the money supply (M) lead to strictly proportional changes in the price level.
Therefore, in the simple quantity theory of money, credit money is always available. Money's velocity should not change.
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established a petty cash fund of $300. the amount of cash in the petty cash fund is now $64. the fund is replenished based on the following receipts: office supplies, $137; selling expenses, $112.
The statement of petty cash is written as,
Petty Cash A/c Dr. $300
To Cash Cr. $300
(Record petty cash fund)
Petty cash:
Petty cash means a small amount of company cash, often kept on hand to pay for minor or incidental expenses, such as office supplies or employee reimbursements.
Given,
established a petty cash fund of $300. the amount of cash in the petty cash fund is now $64. the fund is replenished based on the following receipts: office supplies, $137; selling expenses, $112.
Here we need to write the statement for this account.
From the given details we have found the expanse that has been made on petty cash account is written as,
For Office Supplies A/C Dr. 137
For Selling expenses A/C Dr. 112
To Cash = >($300 - $64) Cr. $236
To Remaining A/C Cr. $13
(Here we record any discrepancy in the cash short and over account)
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eleanor invested in hwajin stock when the company was unlevered. since then, hwajin has changed its capital structure and now has a debt-equity ratio of .42. to unlever her position, eleanor needs to:
Eleanor invested in hwajin stock when the company was unlevered. To unlever her position, eleanor needs to: sell 42 percent of her shares of Hwajin stock and lend out the sale proceeds.
A company , abbreviated as co., is a legal entity representing an association of humans, whether or not herbal, legal or a mixture of both, with a selected objective. corporation contributors percentage a not unusual reason and unite to obtain particular, declared dreams.
A business enterprise is a felony entity fashioned with the aid of a group of individuals to engage in and operate a business—business or commercial—corporation. A employer may be prepared in numerous ways for tax and monetary legal responsibility functions depending on the company regulation of its jurisdiction.
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a chain of grocery stores wants to increase its sales and market share. the processes in its information system should .
A chain of grocery stores wants to increase its sales and market share. the processes in its information system should. the steps for entering information into the system.
Marketplace percentage represents the percentage of an enterprise, or a marketplace's overall income, this is earned via a particular organization over a designated term. market proportion is calculated by taking the employer's income over the length and dividing it by using the overall income of the industry over the identical duration.
Marketplace percentage is calculated with the aid of dividing the employer's overall revenues by way of the entire sales of the entire enterprise in the course of a specific period of time. This indicator is used by data analysts and different specialists to evaluate the dimensions, or presence, of a business enterprise within a given industry.
Due to the fact marketplace percentage is a key indicator of market competitiveness, it enables executives to choose general market increase or decline, discover key traits in customer conduct and see their marketability and market possibility.
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On the graph, demonstrate what happens in the short-run if the central bank increases the money supply. What happens to the aggregate price level when the central bank increases the money supply? There is not enough information. It increases. It decreases. It does not change. Interest rate Quantity of money
The thing that happens to the aggregate price level when the central bank increases the money supply is B. It increases.
What is money supply?The money supply is the total amount of money in circulation (cash, coins, and bank account balances). The money supply is typically defined as a collection of safe assets that households and businesses can use to make payments or hold as short-term investments.
Every dollar deposited into a bank account increases the bank's total reserves. The bank will keep some of it on hand as required reserves, but the excess reserves will be loaned out. When that loan is made, the money supply expands. Banks "create" money in this.
An increase in the money supply will increase aggregate demand for goods and services. In the long run, an increase in the money supply tends to raise the price level. A rise in the money supply may boost national output.
In conclusion, the correct option is B.
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shareholders generally have many right to manage the daily affairs of the corporation, including hiring and firing employees. true false
The above statement "shareholders generally have many right to manage the daily affairs of the corporation, including hiring and firing employees" is false.
A shareholder of a corporation is an individual or legal entity who is registered with the corporation as the legal owner of shares of a public or private corporation's share capital. Members of a corporation are shareholders.
A person or legal entity becomes a shareholder in a company when their name and other data are put in the corporation's register of shareholders or members, and unless required by law, the corporation is not obligated or authorized to inquire as to the beneficial ownership of the shares. A corporation cannot normally hold stock in itself.
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how close were you on your net profit and gross margin goals? you will likely need to bump up your price somewhat. the design is near-perfect so your production costs should account for much less than half your retail price, even if this means you are well above the average price for this segment.
Gross margin is the entire proportion of gross income that is derived from sales for the business.
What exactly are gross and net margins?Definition. Gross margin is the entire proportion of gross income that is derived from sales for the business. Net margin measures how much of a company's revenue is used to produce net income.
By deducting direct costs or the cost of goods sold (COGS) from net sales, the gross profit margin is computed (gross revenues minus returns, allowances and discounts). The gross profit margin ratio is determined by dividing that sum by net revenues and multiplying the result by 100%.
Sales minus manufacturing costs equals gross profit.Profit after expenses equals net profit.Gross profit is equal to (Net sales revenue / Gross profit).(Gross Profit / Net Sales Revenue) x 100 is the formula for the gross profit margin ratio.(Net income / Revenue) x 100 equals the net profit margin ratio.To learn more about Gross margin refer to:
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TRUE/FALSE d. if there is a subsidy of $1 per unit: find quantity bought/sold, consumer surplus, producer surplus, and deadweight loss
The loss of overall welfare or the social surplus as a result of factors such as taxes or subsidies, price ceilings or floors, externalities, and monopoly pricing is known as "deadweight loss."
What does the term "deadweight loss" mean?The cost of market inefficiency, which happens when supply and demand are out of balance, is known as a deadweight loss. Deadweight loss, a term mostly used in economics, refers to any deficit brought on by an ineffective resource allocation.
The deadweight loss of taxation is lower when either supply or demand are inelastic because the quantity bought or sold varies less in relation to price. There is no deadweight loss when there is perfect inelasticity. However, the amount of deadweight loss rises in direct proportion to the supply or demand elasticity.
The area of the triangle formed by the right edge of the grey tax income box, the initial supply curve, and the demand curve is the deadweight loss. The triangle has the name of Harberger's.
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g question content area calculation of value-added and non-value-added costs, activity volume and unused capacity variances rico company produces custom-made machine parts. rico recently has implemented an activity-based management (abm) system with the objective of reducing costs. rico has begun analyzing each activity to determine ways to increase its efficiency. setting up equipment was among the first group of activities to be carefully studied. the study revealed that setup hours was a good driver for the activity. during the last year, the company incurred fixed setup costs of $450,000 (salaries of 15 employees). the fixed costs provide a capacity of 22,500 hours (1,500 per employee at practical capacity). the setup activity was viewed as necessary, and the value-added standard was set at 1,500 hours. actual setup hours used in the most recent period were 21,270.
The actual cost for Rico company is $450000 as per the given capacity, setup and fixed cost
Standard price per hour is given by:
= Fixed setup cost/Capacity in hours
=$450,000/22,500 hours
= $20 per hour
Volume variance = Standard price per hour ×(Standard hours - Actual capacity hours)
=$20×(1500 -22500)
= $420000 unfavourable
Unused capacity variance =
Standard price ×(Actual capacity hours- Actual Setup hours)
= $20(22500 - 21270)
= $24600 Favorable
Value and non-value added cost report:
Setting up:
Value added = 20*1500 = $30,000
Non-value added = 20*(1500-22500)
= $420000
Actual
= 30000 + 420000 = $450000
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new builders inc. enters into a contract with o'reilly to refurbish a garage on his property as an auto repair shop. o'reilly's neighbor pete challenges the project as a violation of the local zoning laws. a court orders a halt to the project. o'reilly's contract with new builders is
If New builders inc. enters into a contract with O'reilly to refurbish a garage and a court orders a halt to the project, O'reilly's contract with new builders is:
DischargedWhat does it mean to discharge a contract?To discharge a contract simply means to terminate such a contract. When a contract is discharged, it ceases to exist and the parties who are signatories to it will no longer be bound by the rules of the contract.
In the case described above, we can see that the court halted the project between the two construction firms. Since there is a court injunction to this effect, the contract ceases to exist and the parties will no longer be bound by any obligation to the contract.
So, the discharge of a contract is a term that is used to indicate the termination of a contract where the parties are no longer bound by the terms.
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A great way to gain valuable experience in a field that interests you, even if you don‘t get paid for your time, is.
Even if you aren't compensated for your time, this is a fantastic way to gain useful experience in a field that interests you. volunteering.
What is experience?Experience refers to conscious events in general, and perceptions in particular, as well as the practical knowledge and familiarity produced by these conscious processes.
Gaining more knowledge and experience will help you compete for the few open employment if you have an interest in a field with a dim future. You might also want to think about seeking work in a related or comparable field. If you have the time and financial ability to do so, volunteering is a great way to gain experience in your field.
Therefore, A fantastic way to gain useful experience in a field that interests you. volunteering.
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How does the WTO encourage free trade?.
The basic objective of the WTO is to advance free trade by removing tariffs and other obstacles.
How can the WTO promote free trade?Lowering tariffs and other trade obstacles is the WTO's primary goal in promoting free trade.Through accords that the majority of trading nations in the world have negotiated and ratified, it accomplishes this.Following that, the WTO enforces these agreements to ensure that all countries follow the regulations.The WTO's approach reduces trade obstacles while also removing other barriers that exist between people and trading economies.The WTO was established with the intention of promoting fair and free trade through multilateral discussions and agreements, as well as mediating disputes between contending nations. Undoubtedly, one of the main goals of the WTO, as well as that of the GATT, which it succeeded, is to promote the removal of trade restrictions and other trade-distorting regulations to allow for more open commerce among member nations.
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What typically happens when inflation is high?.
_______ is a tool used to communicate the distinct attributes of a product; it can be used as a slogan or a theme and often becomes a snapshot of the entire advertising campaign.
The media mix
A unique selling proposition
An informational appeal
Puffery
A headline
A unique selling proposition
A unique selling proposition is a tool used to communicate the distinct attributes of a product; it can be used as a slogan or a theme and often becomes a snapshot of the entire advertising campaign.
Your company's one differentiator from the competition is known as a unique selling proposition (USP). When compared to other companies in your market, it's a distinct and obvious advantage that sets your company apart. An informed and intentional unique selling proposition helps you concentrate your marketing strategy, informs message, advertising, copywriting, and other marketing decisions, and influences potential buyers.
A unique selling proposition is not limited to the header content on your homepage, though. It's a stance your small business adopts as a whole and one that may be reflected in your advertising, brand, customer service, and every other point of contact with customers.
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When opening a print shop you need to buy printers, computers, furniture, and similar items. Economists call these expenditures
capital investment.
You must purchase printers, computers, furniture, and related supplies when operating a print shop. These expenses are referred to as capital investments by economists.
The acquisition of tangible assets by a firm for use in advancing its long-term business goals and objectives is known as capital investment. Assets obtained as capital investments include machinery, manufacturing facilities, and real estate.
When we talk about capital investment, we often mean committing money to a fixed capital expense in the hopes of earning returns that make up for the investment's inherent risk and the time delay before the money can be used for consumption. Capital investments include the following examples are land, buildings, computers, furniture, machinery, and other items.
The above question is incomplete, the complete question is:
When opening a print shop you need to buy printers, computers, furniture, and similar items. Economists call these expenditures
a. Capital Investment
b. Investment in human capital
c. Personal Saving
d. Business consumption expenditures.
Hence the correct option is A
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the desired rate of return uses compound interest because . multiple choice question. compounding is required by federal law it assumes all cash inflows are reinvested at the same rate it is easier than using simple interest compound interest is more accurate
The desired rate of return uses compound interest because it assumes all the cash inflows are reinvested at the same rate that is option B is correct.
Compound Interest is the method in which the investor lend some money to the borrower at a certain rate known as interest rate and for a certain period of time known as interest period. The amount can be compounded annually, semi-annually, monthly, weekly and on a daily basis. The most important feature of compound interest is that the amount earned after a certain compounding period becomes the principle for the next compounding period that is the amount is reinvested at the same rate of interest. Thus, the investor is always in profit while compounding the money as compound interest as it gets increased and there are no chances of loss.
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Complete Question:
The desired rate of return uses compound interest because
A. compounding is required by federal law
B. it assumes all cash inflows are reinvested at the same rate
C. it is easier than using simple interest
D. compound interest is more accurate
with most tax-sheltered accounts, other than roth-type accounts, taxes are merely deferred rather than eliminated altogether. group of answer choices true false
True, with most tax-sheltered accounts, other than roth-type accounts, taxes are merely deferred rather than eliminated altogether.
What is tax-sheltered accounts?
Individuals and businesses can lower their tax obligations by using tax shelters. Shelters include everything from 401(k) plans sponsored by employers to foreign bank accounts.
Although the term "tax shelter" is frequently used negatively, it can also be a valid strategy for lowering tax obligations.
What is roth-type accounts ?
An after-tax contribution is made to an individual retirement account known as a Roth IRA.
While there are no tax advantages for the current tax year, your contributions and earnings can grow tax-free and you can withdraw them without paying taxes or penalties after you reach the age of 5912 and the account has been open for five years.
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this photo shows a portion of the maine coast. the brown muddy area in the foreground is influenced by tidal currents. what term is applied to this muddy area? name the type of tidal current this area will experience in the hours to come.
Among the many charming Mid-Coast Maine towns are Boothbay Harbor, Camden, Rockport, and Rockland.
Where should I go on the coast of Maine?A remarkable journey is touring the Maine Coast. It takes time to view the entire Maine Coast because there is more shoreline than California (3,478 miles). With 17 million acres and 6,000 lakes and ponds, Maine's state territory is larger than the combined size of the other 5 New England states.We advise traveling the breathtakingly beautiful Maine Coast in segments, staying several nights in each town, due to its size and abundance of beach roads. Explore the peninsulas of this amazing coast by venturing off the usual path.Use I-95 (the Maine Turnpike) to drive from south to north rather than using Route One, is our advise for driving in Maine. Although parts of Route 1 seem to be on the coast, the Interstate is much faster.To Learn more About Coast Maine towns refer to:
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