When a loan is repaid, the money multiplier mechanism also acts in reverse, resulting in the destruction of an amount of money equal to the loan payback multiplied by the true value of the money multiplier.
What does term of repayment mean?The time frame from the first point on credit to the transaction's eventual maturity is referred to as the "repayment term." The accomplishment of the exporter's obligation under the export contract is often the starting point of credit ..
What loan repayment means?Repaying a loan involves paying back the money you received from a lender plus any relevant interest. The repayment plan often consists of a set process (referred to as a loan payback schedule) inside the form of equivalent monthly instalments, or EMIs.
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Suppose the price level is fixed, the MPC is .5, and the GDP gap is a negative $100 billion. To achieve full-employment output (exactly), government should
A. increase government expenditures by $100 billion
B. increase government expenditures by $50 billion
C. reduce taxes by $50 billion
D. reduce taxes by $200 billion
Multiplier is 1/.5= 2 so 50 billion increases demand by 100 and closes the GDP gap.
Hence, the correct option is B i.e., increase government expenditures by $50 billion.
The difference between an economy's actual gross domestic product (GDP) and its potential GDP, as shown by the long-term trend, is known as the GDP gap. A country's economy forfeits output when there aren't enough jobs for everyone who wants to work, which results in a negative GDP gap. On the other side, a significant positive GDP gap typically indicates that an economy is overheated and at risk of experiencing excessive inflation.
The production gap is the distinction between real GDP and potential GDP.
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Data for the United States show that poverty is not evenly distributed across groups in the population. Which of the following groups has the LOWEST poverty rate? O married couplesO single fathersO single mothersO children
Married couples generally have the lowest poverty rate among the groups you listed. Option A
What is the poverty ratio?Generally, When compared to the other demographics you highlighted, the poverty rate is often the lowest for married couples.
The poverty rate for married couples in the United States was 6.5% in 2019, according to statistics from the United States Census Bureau. However, the poverty rate for single dads, single moms, and children was much higher at 17.8%, 28.8%, and 18.0%, respectively.
It is essential to keep in mind that the numbers shown here are averages and may not always represent the particular experiences of everyone who belongs to these groups.
There are a lot of different things that might play a role in someone falling into poverty, such as their level of education, their work position, their race, and their access to resources and support systems.
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Indicate whether each of the following transactions would increase (+), decrease (-), or not affect (N/A) total assets, total liabilities, and total stockholders equity.
An agreement between a buyer and a seller to exchange products, services, or financial assets in exchange for money is a transaction.
What are the types of transactions?Financial transactions in a business typically fall into one of four categories. Sales, purchases, receipts, and payments are the four sorts of financial transactions that have an effect on the firm.What are the effects of the transaction?Transaction Total Assets Total Liabilities Total Stockholders
Equity
(a) Declared cash
dividend. Not affect Increase Decrease
(b) Paid cash
dividend declared(a) Decrease Decrease Not affect
(c) Declared stock
dividend. Not affect Not affect Not affect
(d)Distributed stock
dividend declared in (c) Not affect Not affect Not affect
(e)Split stock 3-for-1. Not affect Not affect Not affect
An agreement between a buyer and a seller to exchange products, services, or financial assets in exchange for money is a transaction.
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What does confirmation bias encourage?
The confirmation bias concept comes from the field of cognitive psychology and has been adapted to behavioral finance. Confirmation bias flourishes because it's an efficient way to process information, it promotes self-esteem, and it eases stress by eliminating conflict and contradictions.
Affirmation bias is a time period from the sphere of cognitive psychology that describes how humans certainly favor information that confirms their previously existing ideals. Professionals in the discipline of behavioral finance locate that this essential principle applies to buyers in notable ways.
Because buyers are seeking for out statistics that confirms their current evaluations and ignore facts or information that refutes them, they will skew the value in their selections based totally on their very own cognitive biases. This mental phenomenon takes place when buyers filter out probably useful facts and evaluations that don’t coincide with their preconceived notions.
Traders must be aware about their very own tendency closer to affirmation bias to be able to overcome negative decision-making, missing chances, and avoid falling prey to bubbles. Looking for contrarian perspectives and keeping off affirmative questions are two approaches to counteract affirmation bias.
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A permanent mortgage: O has a term of at least 20 years O is used to finance the purchase of existing properties O cannot be prepaid in any circumstances O none of the above
A permanent mortgage has a term of at least 20 years. The purchase of homes and other real estate is made possible through mortgage loans.
A mortgage is a sort of loan used to buy or maintain a home, a plot of land, or other real estate. The borrower commits to paying the lender over time, usually in a series of regular instalments that are split into principal and interest. As security for the loan, the property is then used.
In order to qualify for a mortgage, a borrower must submit an application through their preferred lender and make sure they satisfy a number of standards, including down payments and minimum credit scores. Before they are closed, mortgage applications must pass a thorough underwriting process. Different mortgage products, including fixed-rate and conventional loans, are available depending on the borrower's needs.
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Which scenario BEST illustrates the connection between human capital and productivity? Madison's grandmother sends her a check for $1,000 to celebrate her high school graduation. Madison meets with a financial advisor and ultimately decides to purchase a mutual sund Alan wants to learn as much as he can about a certain television series. He watches all the episodes one weekend paying particular attention to dialogue spoken by the main chaatien Kyoko, Patrick, and Max are all given the ingredients to make a chocolate cake, but only Kyoko receives a recipe. She finishes her cake before the others, and it is of much better gualty After considering the tuition costs associated with college and calculating his projected earnings for the next few years at his current part-time job Danny decides to attend
The scenario that best shows the connection between human capital and productivity is C. Kyoko, Patrick, and Max are all given the ingredients to make a chocolate cake, but only Kyoko receives a recipe. She finishes her cake before the others, and it is of much better quality.
What is human capital ?Social scientists refer to personal qualities seen to be helpful in the manufacturing process as "human capital." It includes the education, health, and knowledge of the workforce.
Kyoko, Patrick, and Max are each given ingredients needed to make a chocolate cake. However, Kyoto was the only one to receive a recipe which led to her being more productive than others. The recipe was the knowledge described as being part of human capital above.
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a graph (not shown) of the selling prices of homes in a certain city for the month of april reveals that the distribution is skewed to the left. which of the following statements is the most reasonable conclusion about the selling prices based on the graph?
The value of maximum minus third quartile is less than the value of first quartile minus minimum statements is the most reasonable conclusion about the selling prices based on the graph .
Option E is correct .
The five-number summary of a data set with regard to localization, skewness, and spread can be represented graphically using a box and whisker plot, which is also known as a boxplot. The five-number summary also contains the information.
The value of the maximum minus the third quartile (Max - Q3) is often less than the value of the first quartile minus the minimum (Q1 - Min) in mathematics.
Value of the data is (Max - Q3) (Q1 - Min)
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The correct question is :
A graph (not shown) of the selling prices of homes in a certain city for the month of April reveals that the distribution is skewed to the left. Which of the following statements is the most reasonable conclusion about the selling prices based on the graph?
A. The mean is greater than the median.
B. The median is the average of the first quartile and the third quartile.
C. There are fewer selling prices between the first quartile and the median than there are between the median and the third quartile.
D. There are more selling prices that are less than the mean than selling prices that are greater than the mean.
E. The value of maximum minus third quartile is less than the value of first quartile minus minimum.
In the last 25 years most new jobs in the United States can be attributed to the growth in what
In the last 25 years most new jobs in the United States can be attributed to the growth in Service-producing industries.
Where do the majority of new employment originate?Small firms produce the highest percentage of new hires. However, big businesses hire well more than their market share. Despite only making up 0.3% of businesses, they hire over 1/3 of workers.
The US job market is it expanding?Recent job growth has exceeded both the 54,000 jobs per month pace required to sustain October's age-adjusted employment-to-population ratio and the 198,000 jobs per month pace in the year prior to the pandemic, with an average of 289,000 jobs over the previous three months.
What is going on with the American job market?In September, there were 6.1 million new jobs in the United States, which was the fewest since February 2021. In addition, net job growth, which takes into account hiring, quitting, and layoffs, was 261,000 in October, which was still solid but was the lowest number since April of last year.
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253.The zero coupon bonds of Markco, Inc. have a market price of $394.47, a face value of$1,000, and a yield to maturity of 6.87%. How many years is it until this bond matures?A.7 years B.10 years C.14 years D.18 years E.21 years
It is A. 7 years until this bond matures.
Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental). A bond can be compared to an agreement outlining the terms of the loan and the associated payments between the lender and borrower.
Companies, municipalities, states, and sovereign governments utilize bonds to finance operations and initiatives. Bondholders are the issuer's debtors or creditors.
Use the following formula to calculate the number of years until this bond matures:
n = (1 + yield to maturity) / (-ln(market price/face value))
When you enter the values from the question, you get:
n = (-ln(394.47/1000)) / ln(1 + 0.0687)
That amounts to
n = (-ln(0.39447)) / ln (1.0687)
which is roughly equivalent to:
n = 7.0 years
The answer is therefore A: 7 years.
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Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) _____ product.
a. uncategorized b. categorized c. convenience d. shopping e. localized
She wants to make sure she gets the most for her money. This product is a shopping product. Thus option D is correct.
What is the product?The object being sold is referred to as a product. A profession or an object both qualify as products. It could take on a physical, virtual, or digital form. Every good has a cost associated with it, and each one comes with a price. The market, the caliber, the branding, and the group that is being targeted all affect the price that can be given.
She observes that they are available in a range of prices. This is a shopping-related item. Shopping merchandise are disseminated selectively, are found in fewer shops, and student individual advertising and promotion.
Therefore, option D is the correct option.
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The "interest rate effect" can be described as an increase in the price level that raises the interest rate and chokes offinvestment and consumption spending.
The "interest rate effect" is the manner that rate increases encourage similar behaviour to that which is already being done.
What exactly does "interest rate" mean?An rate of interest indicates whether expensive financing is or how profitable savings is. Therefore, if you are a borrowers, the interested rate is the sum you pay for borrowing money and is expressed as a proportion of the total loan amount.
Why is the interest rate crucial?Interest rates affect borrowing rates and spending choices made by people and businesses, which is one way they are important. For instance, lower interest rates might entice more individuals to take out a mortgage for just a new home, borrow money for a car, or make improvements to their homes.
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which of the following oversight tools help congress to ensure that the executive branch is administering the laws properly? (choose every correct answer.)
Hearings and investigations carried out by sitting or special congressional investigations are just a few of the ways that oversight is carried out in Congress.
What does a business branch mean?A bank branch is a place where a business operates aside from the main office. The majority of branch offices are made up of more compact divisions of various company functions including marketing, accounting, and human resources.
Branch and example are what?Branch, bough, and limb are terms for a tree's parts. In general, a branch refers to a large or tiny division. Only the larger branches are referred to as boughs: an apple-laden bough. To climb out onto a limb, which is a significant branch or principal division of the a tree trunk.
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___ is an expensive way to finance a new business. a. credit b. credit grants c. grants loans d. loans investments d. investments
Answer:
hope this helps
Explanation:
the freaken award is ......................................................... c
Which one of the following is a true statement? a. Early CDS programs were linked to electronic medical records b. Early CDS programs were often based on rules and/or the Bayes approach c. Early CDS program could be easily shared d. Early CDS programs are popular today Which one of the following is a ppatient safety recommendation by the Institute of Medicine? a. Make e-prescribing mandatory b. Establish a national medical error reporting system c. Establish Medicare payment penalties for medical errors d. Mandatory reporting of medical errors
The statement that is true is: Early CDS programs were often based on rules and/or the Bayes approach. Option B
What is the Bayes approach ?The described Bayesian method is an effective formalization for encoding the presumptions and data derived from the continuous representation of the sample values, the derived histograms, and the partial-volume effects of imaging.
A mathematical framework called Bayesian decision theory models thinking and making decisions under uncertainty. Perceptual psychologists started developing thorough Bayesian models of vision around 1990. 1. The results of this study program have been quite promising.
In Bayesian decision-making, decisions are based on the likelihood that a result will be successful, where this likelihood is influenced by both the decision-existing maker's knowledge and new information. Bayesian analysis is the statistical method used to calculate these probability.
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Resource bottlenecks are one of the three more common problems encountered in managing multiproject resource schedules. Select one: O True O False
As from the inferred paragraph we can say that the given statement is TRUE as resource bottlenecks are one of the three more common problems encountered in managing multi-project resource schedules.
What is Resource bottlenecks?Resource bottlenecks are a common problem encountered in managing multiproject resource schedules. A resource bottleneck occurs when a project team lacks the necessary resources (e.g., personnel, equipment, materials) to complete the work on time.
This can lead to delays in project schedules, as the team must wait for the resources to become available before they can continue with their work. To manage resource bottlenecks, project managers may need to prioritize projects, allocate resources more efficiently, or find ways to increase the availability of resources.
Other common problems encountered in managing multiproject resource schedules include resource conflicts (when multiple projects compete for the same resources) and resource leveling (balancing the use of resources across multiple projects to avoid overloading or underutilizing them).
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if real gdp in a small country in 2021 is 8 billion and real gdp in the same country in 2022 is 8.3 billion the growth rate of real gdp between 2021 and 2022 is
If a tiny country's real GDP is $8 billion in 2021 and $8.3 billion in 2022, the growth rate of real GDP between those two years is 3.75%.
How is the rate of real GDP growth calculated?You will base your calculation of the real GDP growth rate on the real GDP numbers listed below. Real GDP from the most recent years is equal to real GDP from the most recent years.
The GDP of a nation is measured as a percentage and varies over time, usually from one year to the next. The gross national product (GNP) is a unique economic growth indicator that is occasionally favoured when a country's economy is heavily dependent on foreign earnings. In contrast to nominal GDP growth, the real economic growth rate takes inflation into account when calculating economic growth.
By calculating changes in real GDP from one year to the next, real GDP can also be expressed in dollars. Real GDP is commonly computed in percentages.
Growth rate and Real GDP in Relation to the Formula
Growth rate = (most recent year’s GDP – Last year real GDP) / previous year real GDP × 100
Growth rate = (Real GDP in 2022 - Real GDP in 2021) / Real GDP in 2000 ×100
Growth rate = (8.3 – 8)/8× 100
Growth rate = 3.75%
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which of the following statements about capital budgeting is not true? decisions have to be made considering long-term cash flow factors.
The claim on capital budgeting that is untrue is (A) Purchase decisions are made at the manager level.
Long-term choices involving major capital purchases are capital budgeting. Due to the size of the sum, it might not be possible to change these choices. Decisions must take into account long-term cash flow issues because there are a lot of risks associated with the usage of resources. Since they are so important to the business, the buying decisions are made at the highest level.
Making the best judgments is aided by capital budgeting. It includes decisions regarding expansion plans, mergers, and replacements but excludes those pertaining to inventory.
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COMPLETE QUESTION:
Which of the following statements about capital budgeting is not true
A) Purchase decisions are made at the manager level.
B) Capital purchases are for large amounts.
C) Capital purchases are long-term.
D) Decisions may not be possible to reverse.
E) Decisions have to be made considering long-term cash flow factors.
It is always possible to achieve perfect beauty (based upon contemporary standards) as long as you eat the right things, dress the right way, exercise, and buy the right products.T/F?
True, It is always possible to achieve perfect beauty (based upon contemporary standards) as long as you eat the right things, dress the right way, exercise, and buy the right products.
What criteria are generally used to judge beauty?Hairstyles, skin color, and body type are frequently used as criteria for defining beauty. In order to meet these requirements, one must take steps that are frequently dangerous. For many years, a woman's weight and size have dominated what is considered to be attractive. That criteria is frequently used today to describe thinness. People have to adhere to these unrealistic criteria, which include having an hourglass body and a tiny waist, in order to be considered beautiful. Social media and everyday encounters both uphold the social construct known as "body standards," which is enforced by them.
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Shade Company accepts national credit cards for customer purchases. Journalize the entry for an $800 sale if the credit card company charges a service fee of 4%.
a. (D)Cash 768
(D) Service Charge Expense 32
(C) Sales Revenue 800
b. (D) Cash 800
(C) Sales Revenue 800
c. (D) Cash 768
(C) Sales Revenue 768
d.(D)Cash 768
(D) Sales Discounts 32
(C) Sales Revenue 800
An response to the question becomes option A. a. (C) Revenue From sales 800 (D) Cash 768 (D) Service Fee Expense 32
What does the term customer mean?
An individual or company that purchases products or services from some other company is known as a customer. Customers are essential because they produce income. With employees, businesses would die out.
What does customer service mean?
Customer support is the assistance you provide to your clients to make their interactions with you simple and joyful, both prior to and after they purchase and utilize your goods or services. In order to keep customers or grow your business, you have to provide exceptional customer service.
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__ capital is money provided by large investors to fiance new products and new business that have a good chance to succeed. answer choices. Venture.
Venture capital is money provided by large investors to fiance new products and new business that have a good chance to succeed.
Venture Capital:Venture capital (VC) is a form of private equity, a type of financing that investors offer to start-ups and small businesses that they believe have long-term growth potential.
Venture capital is generally provided by wealthy investors, investment banks and other financial institutions. Venture capital (VC) is a type of private equity that provides funding to early-stage start-ups or start-ups with little or no operating history but significant growth potential.
Startups sell stakes in venture capital funds in exchange for funding, technical support, and management know-how.
How Do Venture Capitalists Make Money?Venture capitalists make money from running interest and administrative expenses on investments. Most VC firms collect around 20% of profits from private equity funds, with the rest being passed on to limited partners. The complement can also collect an additional 2.
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making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called cash:
Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called cash management.
The practise of gathering and managing cash flows is known as cash management. Cash management is a skill that both individuals and businesses can benefit from. It is a crucial part of a business's financial stability. Cash is necessary for people's financial stability and is typically regarded as a component of their overall wealth portfolio.
The financial industry has a vast range of products and services available to assist with all different kinds of cash management requirements for both individuals and organisations. The major financial service provider for the custody of monetary assets is often a bank. For those looking to maximise the return on their cash holdings or make the most efficient use of their cash overall, both individuals and corporations have access to a wide range of cash management options.
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TMA manufactures 37-in. high definition LCD televisions in two separate locations, Locations I and II. The output at Location I is at most 6000 televisions/month, whereas the output at Location II is at most 5000 televisions/month. TMA is the main supplier of televisions to the Pulsar Corporation, its holding company, which has priority in having all its requirements met. In a certain month, Pulsar placed orders for 3000 and 4000 televisions to be shipped to two of its factories located in City A and City B, respectively. The shipping costs (in dollars) per television from the two TMA plants to the two Pulsar factories are as follows.
To Pulsar Factories
From TMA City A City B
Location I $6 $3
Location II $7 $10
TMA will ship x televisions from Location I to city A and y televisions from Location I to city B. Find a shipping schedule that meets the requirements of both companies while keeping costs to a minimum.
(x, y) = What is the minimum cost?
$
In easy terms, delivery charges are the fees for the movement of cargo from Point A to Point B. Depending on the kind of contract, a couple of aspects may additionally be included in the transport costs.
Are transport costs by way of dimension or weight?All main carriers use a pricing technique called dimensional weight (also referred to as DIM weight) to calculate shipping rates. Dimensional weight takes into account the size of a package to determine the delivery cost.
Use flat-rate delivery where possible—flat-rate transport will almost always be the pleasant fee for money, especially for domestic delivery. Flat-rate shipping potential that you can predict expenditures greater accurately. No matter what sort of parcel you have or what dimensions or weight it is, the charge will usually be the same.
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https://brainly.com/question/24317138#SPJ4Companies often require non-disclosure agreements from their employees because a non-disclosure agreement
identifies all the different ways an employee could violate company policies
obligates the employer to keep the personal information of employees private
protects company secrets from being leaked, which could result in loss of clients
provides for a documented exchange of information between employees and employers
A non-disclosure agreement (NDA) is a contract that is enforceable under law and creates a confidential relationship. The signatory(s) agree that any sensitive information they may collect will not be disclosed to any third parties. A confidentiality agreement is another name for an NDA.
What is non-disclosure agreement (NDA)?
Non-disclosure agreements are frequently used by companies when they get into negotiations with other companies. They give the parties the freedom to exchange private information without worrying that their rivals would obtain it. It might be referred to as a mutual non-disclosure agreement in this situation.
Before conversations between companies about potential joint ventures, the NDA is customary.
To safeguard the private business information of a company, NDAs are frequently demanded of employees.
A confidentiality agreement is another name for an NDA.
Mutual and non-mutual non-disclosure agreements are the two main categories of non-disclosure agreements.
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Based on the internal team role assignments you anticipate making for your project, which roles might need to be filled by the vendor?
Project completion, which occurs in the last stage of a project's life cycle, is all about bringing a project to a successful conclusion.
Contract Closure:Contracts expire at the same time that projects do. The completion and settlement of the provisions of the contracts granted for the project is known as contract closure. Because the contract closing process evaluates whether the work outlined in the contracts was carried out precisely and successfully, it aids in the project completion process.
Releasing the Project Team:The procedure of releasing project team members is not a formal one. It should be noted, though, that when the project is over, you will release the members of your project team, who will then either report back to their functional supervisors or be given a new project to work on. As the project nears completion, you should contact their supervisors or other project managers so that they have enough time to prepare for their workers' return.
Final Payments:Typically, the final payment exceeds a basic proportion of the work still to be done. The final payment should be sufficient to encourage the vendor to give the project high priority so that it may be finished on schedule since finishing the project can include addressing the most challenging problems that are disproportionately expensive to solve.
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#SPJ1Real Stones, Inc., and Sparkling Jewelry Stores enter into a contract for a sale of gemstones. Real Stones does not deliver. Sparkling can recover as damages the difference between
A) any loss avoided and any profit gained.
B) the actual price and the hoped-for price.
C) the contract price and the market price.
D) the current prices in the contracting parties' places of business.
A) Any loss avoided and any profit gained.
Current liabilities _____ operations, including short-term notes payable and dividends payable are categorized as financing activities.
No, current liabilities are not categorized as financing activities. Current liabilities are categorized as operating activities. Financing activities refer to activities that raise capital for an organization, such as issuing debt and equity, paying out dividends, or obtaining loans and lines of credit.
Short-term notes payable and dividends payable are both types of current liabilities that can be classified as financing activities. Dividends payable are funds that a company has committed to pay to shareholders, usually in the form of cash distributions. Both of these activities involve spending money that has been borrowed or invested, which is why they are categorized as financing activities.
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When current government expenditures exceed current tax revenues and the economy is achieving full employment: A. the cyclically adjusted budget has neither a deficit nor a surplus. B. the cyclically adjusted budget has a deficit C. fiscal policy is contractionary D. the cyclically adjusted budget has a surplus
When current government expenditures exceed the current tax revenues and economy is achieving full employment fiscal policy is contractionary.
What is fiscal policy?In economics and political science, fiscal policy refers to the use of government tax collection and expenditure to influence a nation's economy. Due to the impracticality of the previous laissez-faire approach to economic management during the Great Depression of the 1930s, the use of government revenue expenditures to influence macroeconomic variables was developed. Fiscal and monetary policy are largely used by a nation's government and central bank to further its economic objectives. The combination of these measures enables these agencies to target inflation and increase employment. Additionally, it tries to maintain GDP growth at 2%–3% and unemployment rates near the natural unemployment rate of 4%–5%. This implies that fiscal policy is used to maintain economic stability over the course of the business cycle.
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Company A has a profit margin of 12% and investment turnover of 32. Company B has a profit margin of 15% and Investment turnover of 24. Company __ has a better return on investment
Company A has a better return on investment. Company A's Investment turnover is more than Company B's Investment turnover .
What do the terms profit and revenue mean in ROI calculations?
Margin is net operating income divided by sales and is typically improved by increasing selling prices, reducing operating costs, or increasing unit sales. Revenue is revenue divided by average business assets.
What is revenue and how is it calculated?To calculate the company's annual sales, simply add up the total sales. If a company sells products, annual sales refer to the total number of sales of the products sold. If a company sells services, revenue is the sum billed for those services.
What is Margin Impact Ratio?Margin impact can be identified by comparing current profit margins after the change to future conditions. A simple example looks like this: If a company decides to change its price and volume combination, it must first calculate the new total cost.
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the measure most closely ties the cost of the social media ad to the sales revenues the ad generates.
The cost-per-action measure most closely ties the cost of the social media ad to the sales revenues the ad generates.
What are sales revenues?
The money a business makes from the selling of its products or the delivery of its services is known as sales revenue. Sales and revenue are often used interchangeably in the context of accounting to refer to the same item. You should be aware that revenue does not always equate to money received. Although it may not always reflect real-time sales, sales income covers all transactions for goods and services. Using the aforementioned example, Roosevelt sold 40 bears in June for a total of $1,000 and received a payment of $25 per bear. At a cost of $20 per bear, let's say Roosevelt additionally repaired five animals.
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When Michael started his construction company, he needed to purchase some very expensive excavating equipment, but he didn't have the cash on hand to do so. He borrowed from the bank to cover this _______ expenditure. Multiple Choice a. principal b. short-term c. capital d. inventory e. intangible
When Michael started his construction company, he needed to purchase some very expensive excavating equipment, but he didn't have the cash on hand to do so. He borrowed from the bank to cover this capital expenditure. The Option C is correct.
What is a capital expenditure?Basically, a capital expenditures refers to the funds used by a company to acquire, upgrade, and maintain its physical assets such as property, plants, buildings, technology, or equipment.
This expenditure is often used to undertake new projects or investments by a company. Making of capital expenditures on fixed assets can include repairing a roof. purchasing a piece of equipment, or building a new factory.
In conclusion, this type of financial outlay are made by companies to increase the scope of their operations or add some future economic benefit to the operation.
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