which of the following would be an example of a current account transaction in a country's balance of payments?

Answers

Answer 1

Exports and imports of commodities and services, as well as transfers, are included in a country's current account.

What does the balance of a current account look like?

(X-M) + NI + NT is the formula for current accounts.

For a country to have a positive trade balance, there must be more exports than imports. Domestically generated goods and services are counted in both imports and exports. Net transfers are made up of government transfers, whereas net income is mostly made up of funds from other countries.

In what transactions is the current account for the balance of payments displayed?

An economy's interactions with the rest of the world are summarized by the balance of payments. Transfer payments as well as the export and import of goods, services, and financial assets are included in these transactions (like foreign aid).

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Related Questions

____ are structured training programs that mandate that each beginner serve as an assistant to a fully trained worker before gaining full credentials to work in the field.

Answers

Before receiving full credentials for work in the industry, participants in structured programmes called apprenticeships are required to work like an assistant to a worker who has received the necessary training.

What credential means?

1. something that lends credibility or assurance. additionally: qualification 3a. the candidate with the strongest qualifications. Credentials are testimonies or official records that attest to a person's ability to exert authority or be given credit.

What are examples of credentials?

Doctorate levels (PhD, DrPH, Ids, EdD, Np), master's degree (Msc, MS, MA), requires a bachelor ’s degree (BS, BSN, BA), or bachelor degrees are examples of educational credentials (AD, ADN). RN and LPN certifications are required for licensure.

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it is possible to meet all project specifications and not meet client expectations or fail to meet one or more specifications and still meet or exceed a client's expectation.

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The assertion is accurate. It is possible to adhere to all project specifications but yet falling short of or failing to achieve a client's expectations, or vice versa.

Describe specification and provide an example:

A specification is a need that is unambiguously specified, such as the characteristics that must be included in a product's design. I want to purchase a piece of land and have a house constructed to my specifications.

We utilize specifications because:

they provide clear instructions on the project's goal, performance, and construction. It could act as a reminder of the requirements for quality and standards to be met. It is possible to clearly specify materials and create things. It is possible to establish the prerequisites for installation, testing, and handover.

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A client messaged you saying that there might be something wrong with the bank feed of their checking account. What would be the first thing to do to see if the bank feed will refresh?

Answers

To refresh your feed:

In the Accounting menu, pick out Bank accounts.

On the account you desire to refresh the financial institution feed for, click on Manage Account, then choose Refresh Bank Feed.

How lengthy does it take to refresh financial institution feed in Xero?

Transactions will show up in your bank account in Xero each 12 hours, or you can manually refresh your feed to import the ultra-modern transactions.

Why is Sage bank feeds not working?

This may be due to the fact your bank has made an error in supplying transactions to us, or some thing has long gone wrong with the bank feed.

To flip on or off the routinely refresh list feature:

In the Home window on the Setup menu, select User Preferences, then Options.

Select or clear the Automatically Refresh Lists check box.

Click OK.

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private companies, professional organizations, colleges, employers, and individuals are all sources of .

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scholarships . ( Houses of worship, unions, school districts, chambers of commerce, and charities are all excellent sources of college scholarships.)

What is the common types of scholarships?

Executive and academic scholarships are the two most common types of scholarships awarded by universities. Leadership Scholarships are awarded for participation in curricular and extracurricular activities and academic excellence.

What are the best types of scholarships?

A full-ride scholarship is a ride to college that covers all costs and is the most desirable of the different types of scholarships. Most fully funded scholarships are school-specific, but some organizations do not limit the use of funds to specific schools.

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the ending raw materials and finished goods inventories at december 31, 2021, follow the same percentage relationships to production and sales that occur in 2022. three pounds of raw materials are required to make each unit of finished goods. raw materials purchased are expected to cost $4 per pound.

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The total production costs for goods that have been finished but haven't been sold are included in finished goods inventory.

A production budget is frequently created by businesses on a monthly or quarterly basis. Based on anticipated sales and planned ending inventory levels, the Production Budget sets the number of units to create within a specific time period.

The third and final category of inventory that manufacturing companies employ for accounting purposes, which includes the products that are sold to customers, is finished goods inventory. Raw materials are used to create manufactured goods, which subsequently enter the work-in-progress (WIP) stage as they are produced.

Everything from apparel to food to electronics is considered a finished commodity. Since it has finished the process and is prepared to be sold to clients directly or to other businesses, this term simply refers to the finished product.

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today, the role of social media is to build relationships among consumers and turn consumers into brand advocates. in contrast to earlier goals of promotion, this new form of promotion is described best as promotion.

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Today, the role of social media is to build relationships among consumers and turn consumers into brand advocates. In contrast to earlier goals of promotion, this new form of promotion is described best as Connecting promotion.

Which of the following, in terms of its marketing messages, is the primary objective of integrated marketing communication?

Creating a consistent message and brand identity that customers will recognize across all media is the aim of integrated marketing communications. This calls for a coordinated approach involving all facets of marketing, from sales and customer service to public relations and advertising.

What term describes a variety of tools and procedures that assist marketers in the planning and evaluation of marketing initiatives?

A corporation uses a set of tactical, controllable marketing tools known as the marketing mix to elicit a desired response from its target market. Everything a business can do to affect the demand for its product is included in it. It is a tool that aids in planning and carrying out marketing strategies.

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Based on the following cost data, what conclusions can you make about the costs of Product A and Product B?

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While the price of Product B is set, the price of Product A is flexible. For a corporation to precisely assess profit versus costs each period, meticulous cost tracking is essential.

A cost data is what?

Cost data refers to precise information on specifics, such as anticipated costs for labor, materials, overhead, and other pricing elements that the contractor has included or will include as part of fulfilling the contract.

Why are cost data collected?

Cost information assists you in estimating the expenses of resources like labor, materials, and equipment needed to carry out a project, provide a service, or engage in another activity.

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nathan noticed that a company that has great potential just declared a because its stock price was getting too high for the small investor to buy the stock. the company will substitute more shares for the existing shares of stock without increasing the market value of the firm. group of answer choices claim on income stock repurchase stock split dividend yield

Answers

The organization will replacement extra stocks for the prevailing stocks of inventory with out growing the marketplace price of the firm  stock split.

The required details about stock split is mentioned in below paragraph.

A  stock split up takes place whilst a organization will increase the range of its stocks to reinforce the inventory's liquidity. Although the range of stocks extraordinary will increase via way of means of a particular multiple, the whole greenback price of all stocks extraordinary stays the equal due to the fact a cut up does now no longer essentially alternate the organization's price. The maximum not unusualplace stock split ratios are 2-for-1 or 3-for-1 (on occasion denoted as 2:1 or 3:1). This approach for each percentage held earlier than the cut up, every stockholder may have or 3 stocks, respectively, after the cut up.

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Policymakers who control monetary and fiscal policy and want to offset the effects on output of an economic contraction caused by a shift in aggregate supply could use policy to shift
Aggregate demand to the right

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Policymakers who control monetary and fiscal policy and want to offset the effects on output of an economic contraction caused by a shift in aggregate supply could use policy to shift Aggregate demand to the right.

Which of the following policy options best exemplifies a blend of monetary and fiscal measures intended to lift the economy out of a slump?

Expansionary policy aims to generate demand through monetary and fiscal stimulus in order to stimulate an economy. Economic downturns and recessions are expected to be avoided or at least moderated through expansionary policies.

How do monetary and fiscal policies impact the economy?

Fiscal and monetary policies are both employed to control economic activity over time. They can be used to either regulate growth and activity when an economy starts to overheat or to boost growth when it starts to slow. Fiscal policy can also be used to redistribute wealth and income.

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Which is a basic requirement for a fullfilling career

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Figuring out the impact you want to have on the world for fullfilling career. Helping something greater than yourself. observing your basic values and what is most important to you.

What aspect of your employment gives you the most satisfaction?

Proficiency. Knowing that you can perform your task to the best of your abilities when you have a job that allows you to employ the skills in which you are most adept and confident can be gratifying. You may be inspired to continue developing your abilities if you have the chance to do so while generating high-quality work.

What is professional satisfaction?

When you find a career that balances your interests and skills, you will experience career fulfillment. Your career fulfillment may consist of doing what you enjoy, having an impact, and producing meaningful work.

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For a sport organization to deliver engaging content through social media, should social media managers listen to and learn from consumers rather than just disseminate information?YesNo

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For a sport organization to deliver engaging content through social media, should social media managers listen to and learn from consumers rather than just disseminate information Yes. it allows them to know how to target their market.

Keep fanatics up to date on group information like new signings, contracts, bulletins and occasions. Foster fan engagement with unique content material from leagues, teams, coaches, and players. Promote occasions or teams.

On pinnacle of the quantity of interest you doubtlessly have get right of entry to to, extra fan engagement is a key benefit of social media as a sports activities advertising and marketing channel as well.

The conventional nature of a game may be lost, for example, guidelines and timings are tailored to in shape the needs of television. The media controls the vicinity of occasions, in addition to kick-off instances and in a few instances gambling seasons.

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The two broad categories into which capital budgeting decisions fall are ___ decisions and ___ decisions.
screening
preference

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Considerations about screening and preferences are the two major areas of capital budgeting decisions.

What is capital budgeting decisions ?Choosing the best alternative long-term investment opportunity is what capital budgeting is all about. Where to put corporate funds is indicated. The years it will take to recoup investment, the return on a plan, and the net present value of the resulting cash flows are all calculated as part of the capital budgeting process. Considerations about screening and preferences are the two major areas of capital budgeting decisions. Whether a project proposal meets a particular accepted standard is the subject of screening judgments. Choosing between conflicting actions is governed by preference decisions.The several capital budgeting approaches are covered in this chapter, including internal rate of return, net present value, deferred payback, payback, and accounting rate of return. In addition, the study takes into account contingent proposals, capital rationing, nondiscretionary initiatives, and the inclusion of risk.

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industrial unions are typically composed of individuals who perform the same type of work - machinists, pipefitters, etc.

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Industrial unions are organizations comprised of people all of whom work in the same industry or provide a similar type of industry service, Therefore the given statement is false.

What is industrial unions?Industrial unionism is a trade union organizing method in which all workers in the same industry, regardless of skill or trade, are organized into the same union, giving workers in one industry, or all industries, more bargaining and strike leverage.A type of union organizing in which all workers in a specific industry are organized into the same union regardless of their skill or trade. As a result, workers in one or more of the industries gain more bargaining and strike leverage.A trade union brings together experienced workers who do the same jobs. The industrial union is an organization of workers who work in the same industry.

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aggregate information as part of an analytics package may include the total number of visits but not the total revenue the total revenue but not the total number of visits the total number of visits and the total revenue none of the above

Answers

An aggregate information as part of an analytics package may include the total number of visits and the total revenue.

Thus, the correct option is C.

What is total revenue?

In other words, businesses utilize this statistic to assess how effectively their primary sources of revenue are generating profits.

Total revenue is directly correlated with marginal revenue.

An indefinitely elastic demand curve is presented to a corporation that is perfectly competitive. In other words, the market price is the only price at which it may be sold.

At any lower price, it could sell the same quantity at the going rate and yet make more money, whereas at any higher price, nobody would purchase any quantity.

The market price multiplied by the amount that the business decides to manufacture and sell equals total revenue.

Total revenue is the amount of money generated by a company's sales of goods and services.

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When economists use the term ___________ in its broadest sense, it applies to blue and white-collar workers, professional individuals such as lawyers, professors, and dentists, as well as small business owners.
labor

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When economists use the term labor in its broadest sense, it applies to blue and white-collar workers, professional individuals such as lawyers, professors, and dentists, as well as small business owners.

suppose there are 5 million unemployed workers seeking jobs. after a period of recession, the economy is now recovering, hence 1 million of discouraged workers start to look for work. as a result of this, all else equal, the official unemployment rate would .

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discouraged workers start to look for work. as a result of this, all else equal, the official unemployment rate would decline

The percentage of the labour force without a job is known as the unemployment rate. It is a lagging indicator, which means that rather than foretelling changes in economic conditions, it often rises or decreases in response to them.

The unemployment rate is likely to increase when the economy is struggling and there are few open positions. It is reasonable to anticipate a decline in it when the economy is expanding healthily and there are plenty of available jobs.

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Indicate what is happening to the U.S. real exchange rate in each of the following situations.
The U.S. nominal exchange rate is unchanged, but prices rise faster in the United States than abroad.

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If the U.S. nominal exchange rate is unchanged, but prices rise faster in the United States than abroad, the real exchange rate increases.

an accurate exchange rate R is defined as the difference between domestic and international prices, where domestic prices are calculated using the nominal exchange rate at the time. Formally, R=(E.P*)/P, where P* stands for the domestic price level and P* for the international price level.

The real exchange rate (R) is said to appreciate when it falls and depreciate when it rises. The real rate indicates how much more or how little less goods and services can be purchased for a certain amount overseas (after conversion into a foreign currency).

In actuality, changes in the real exchange rate are more significant than changes in the rate itself.

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Advertising that is designed to persuade on the basis of human emotions and emotional needs rather than reason relies onGroup of answer choicespuffery.concealed facts.ambiguous wording.psychological appeals.

Answers

Society has called for reform as instances of unlawful and unethical business practices are made public.

What exactly do you understand by advertising?

A marketing strategy called as advertising involves purchasing real estate to advertise a good, bad, or intangible idea. Ads, as they are commonly known, are the real advertising messaging. Reaching the demographics more likely to be interested in purchasing a company's goods or services is the aim of advertising.

Describe advertising with an example.

These particular adverts include: Newspaper, magazine, and brochure advertisements, among other print media Radio and television commercials are examples of broadcast advertising. Hoardings, posters, flags, wraps, etc. are examples of outdoor advertising. Internet and digital gadget advertisements are referred to as "digital advertising."

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Precision Parts Corporation and competitive merchants who deal in goods of the same kind assert that their products are of the proper quality. This is:A:an express warranty.B:an implied warrantyC:a warranty of title.D:puffery

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Precision Parts Corporation and competitive merchants who deal in goods of the same kind assert that their products are of the proper quality. This is an express warranty

An express warranty is a written or oral representation made by a seller about the quality or condition of a product. It guarantees that the product will perform as promised or advertised, and it may include specific terms and conditions about how the product will be repaired or replaced if it fails to meet the stated standards.

Express warranties can be created by the manufacturer, seller, or both. They may be included in the product packaging, advertisements, marketing materials, or sales contract or agreement. In the given case, both Precision Parts Corporation and competitive merchants that sell similar goods claim that the goods they sell are of the right calibre. Consequently, it denotes an express warranty.

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which of the following is not an exception to the employment-at-will doctrine? multiple choice public policy implied-contract occupational safety and health administration all of these are exceptions to the employment-at-will doctrine implied covenant of good and fair dealing

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The option that is not an exception to the employment-at-will doctrine, is C. occupational safety and health administration.

What is the employment-at-will doctrine?

With an at-will contract, an employer is free to terminate an employee at any moment for any reason—aside from those that are illegal—or for no reason at all. Similarly, there are no negative legal repercussions if an employee quits their employment at any moment for any reason or for no reason at all.

At-will employment also indicates that an employer may modify the conditions of the employment relationship at any time with no warning and no repercussions. An employer might change pay, stop providing benefits, or cut paid time off, for instance. In its purest form, the U.S. at-will law exposes workers to arbitrary and unexpected termination, a constrained or on-call work schedule depending on the demands of the employer, and sudden reductions in salary and benefits.

However, there are exceptions to the employment-at-will doctrine including, public policy, implied contracts, and implied covenant of good and fair dealing.

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Which of the following statements is false?To be relevant, a cost must occur in the future.To be relevant, a cost must be an opportunity cost.Sunk costs are never relevant.Sunk costs are costs that occurred in the past.

Answers

B. To be relevant, a cost must be an opportunity cost statement is false.

Relative costing is a costing method used in management accounting to assist managers in making business choices. It is crucial while deciding which option to evaluate and go with.

Option A, "A cost must arise in the future to be relevant," is untrue. It is accurate to state that costs that will arise in the future are relevant costs.

Option B, "A cost must be an opportunity cost to be relevant," is correct option. A cost must differ between two or more options that are precisely different from the idea of opportunity cost in order to be meaningful.

Sunk costs are never relevant, which is Option C , is incorrect  A sunk cost is a previous expense that will never be taken into account when choosing an appropriate costing strategy, it is true.

Option D, which states that sunk costs are expenses from the past, is incorrect. Sunk costs are expenses that have already been incurred in the past since they are historical expenditures.

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Floating-rate notes (FRN) A. experience very volatile price changes between reset dates.B. are typically medium-term bonds with coupon payments indexed to some reference rate (e.g. LIBOR). C. appeal to investors with strong need to preserve the principal value of the investment should they need to liquidate prior to the maturity of the bonds. D. both b and c

Answers

Floating Rate Notes (FRNs) are investments with a two-year maturity period. four interest payments every year. have a variable or "floating" interest rate over time.

Which of the following benefits do investors receive from variable rate bonds?

FRNs are attractive to investors because they offer greater interest rates due to the floater's periodic adjustment to market rates.

What does "floating rate" mean?

A floating interest rate suggests that the interest rate is susceptible to change every three months. Your loan's interest rate will be tied to the base rate established by the RBI based on a number of economic variables.

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entrepreneurial new entry is often perceived as a competitive threat because most market needs are not being met, either directly or indirectly, by an existing firm.

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Entrepreneurial new entry often poses a competitive threat because it introduces new and innovative solutions to existing market needs that existing firms do not provide.

This can disrupt existing market dynamics and lead to significant changes in prices, products, services, or even entire industries. As a result, existing firms must either adapt to the new environment or lose market share to the new entrant. In addition, the new entrant may also create opportunities for competitors to enter the market, further increasing competition. This can have an effect on the profitability of existing firms and may lead to increased costs for consumers.

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look at the table. how does the government in a free enterprise system, such as the one in the united states, differ from the role of government in a communist system regarding these market forces

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In a free enterprise system, the government does not control any of these market forces.

In a free enterprise economic system, what function does the government serve?

Maintaining law and order, defending the freedom of individuals to own property, and upholding voluntarily entered into agreements are all things that the government has the coercive authority to do. Essentially, the free enterprise system is supported by the government by providing a framework.

How does the government function in a free-market system?

A free market economy with a few restrictions, rules, and protections from the government. Tax income is money the government gets from people's homes and businesses. This money is used to purchase products and services on the product market as well as supplies on the factor market.

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the end product of a team effort is often a written report, a series of multimedia slides, and an oral presentation that is delivered live. working in teams can be challenging if members do not carry their weight or cannot resolve conflict. however, if your group establishes successful team processes, you are more likely to produce an effective presentation. successful teamsencourage flexibility in meeting attendance .

Answers

It is true to say that successful teams when planning a multimedia slide and oral presentation should profile the audience.

How to plan an oral presentation?

It is essential that the speaker prepares himself prior to the date of the oral presentation, developing oral and visual communication methods and techniques that achieve the central purpose of engaging his target audience.

For this, it is necessary to align the topics to be discussed in the presentation with the public's profile, that is, the language, tone and techniques used must be compatible and develop the public's attention.

Therefore, a successful oral presentation is one that generates interest, attention and manages to capture the listeners' attention, leading them to ask questions, participate in some way, reflect and provide positive feedback on the topics discussed.

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SAL PREPARES HIS FINANCIAL STATEMENTS USING STRAIGHT LINE DEPRECIATION. SAL FILES HIS TAX RETURN USING MACRS.MACHINE DEPRECIABLE BASIS 336,000 LIFE 5 YEARS SALVAGE VALUE 0DATE PLACED IN SERVICE APRIL 1, YEAR 1DATE SOLD JAN 1, YEAR 4 SALES PRICE 127,000 REQUIRED: WHAT IS THE LOSS ON SALE FOR FINANCIAL STATEMENT PURPOSES RECORDED ON JANUARY 1, YEAR 4? (DO NOT ROUND) (INSERT THE AMOUNT ONLY) REQUIRED: WHAT IS THE GAIN ON SALE FOR TAX PURPOSES RECORDED ON JANUARY 1, YEAR 4? (DO NOT ROUND) (INSERT THE AMOUNT ONLY) (INSERT THE AMOUNT ONLY) REQUIRED: WHAT IS THE GAIN ON SALE FOR TAX PURPOSES RECORDED ON JANUARY 1, YEAR 4? (DO NOT ROUND) (INSERT THE AMOUNT ONLY)REQUIRED: WHAT IS SAL'S YEAR 4 M-1 ADJUSTMENT RELATED TO THE SALE? (DO NOT ROUND) (INSERT THE AMOUNT ONLY) REQUIRED: WHAT IS THE NET BOOK VALUE OF THE MACHINE FOR TAX PURPOSES AT DECEMBER 31, YEAR 2?

Answers

For tax reasons, the machine's net book value at the end of year two was $2,42,760. A non-cash business expenditure that is spread out and measured over time is depreciation.

What exactly does a depreciation mean?

The fixed assets' book value decreases as a result of depreciation. Due to deterioration and developments in technology, assets lose value over time. Throughout the usable lifespan of the assets, depreciation will continue.

What is an example of depreciation?

The most typical sorts of depreciable assets include things like cars, buildings, furniture for offices, computers and other electronics, machinery and equipment, and certain intangibles like computer software, copyrights, and patents.

Briefing:

1. Loss on Sale for Financial Statement purposes

depreciation p.a = (original cost- salvage value)/ life of asset

= (3,36,000-0) / 5years

= 67,200 per annum

book value at year end 3 = 1,34,400

less:- sales value            = 1,27,000

loss on sale of machine = 7,400

2. rate of depreciation on machinery= 15% per annum on WDV method

value at the end of year 3 = 2,06,346

less:- sales value             = 1,27,000

gain on sale of machine  = 79,346

3. carrying amount as per books = 1,34,400

  value for tax base                     = 2,06,346

   timming difference                  = 71,946

  tax rate (assumed)                     = 30%

  DTA                                          = 21,583.80

Journal entry:-

Deferred Tax Asset A/c      Dr       21,583.80

       To Profit & Loss A/c                               21,583.80

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If a consumer could pay $100 for a new pair of jeans or $100 toward asteroid deflection,
what would that consumer likely choose?
I. purchase the jeans
II. purchase asteroid deflection
III. purchase both the jeans and asteroid deflection
A) I only
B) II only
C) III only
D) I and II only

Answers

If a consumer could pay $100 for a new pair of jeans or $100 toward asteroid deflection, would that consumer likely choose purchase the jeans I only.

Which of the following products can be both excluded and competed with?

A private good is one that is both excludable and competitive in consumption.

Is reducing smog a public good?

Option c) is erroneous since pollution reduction, a lighthouse, and national defense are all public goods rather than rival goods.

Which of the following describes why fish from the ocean, like tuna, are a valuable resource?

Because it is hard to stop people from fishing in the ocean and because every time someone takes tuna, there is less tuna for the next person, tuna in the ocean is a common resource.

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At the end of the year, before distributions, Bombay (an S corporation) has an accumulated adjustments account balance of $15,000 and accumulated E&P of $20,000 from a previous year as a C corporation. During the year, Nicolette (a 40 percent shareholder) received a $20,000 distribution (the remaining shareholders received $30.000 in distributions). (Assume her stock basis is $40,000 after considering her share of Bombay's income for the year but before considering the effects of the distribution.) Required: a. What is the amount and character of gain Nicolette must recognize from the distribution? b. What is her basis in her Bombay stock at the end of the year?

Answers

The amount and character of gain Nicolette must recognize from the distribution is $8000 and basis is $ 28000.

For $ 15000 distributions,

Given,

Accumulated adjustments account balance = $15000

Shareholder = 40%

To calculate, Distribution from 15,000 accumulated adjustments account

                                              = 15,000 *40%  

                                              = 6000 (This reduces her basis)

For $ 20000 distributions,

Given,

Accumulated adjustments account balance = $15000

Shareholder = 40%

To calculate, Distribution from 20,000 accumulated adjustments account

                                              = 20,000 *40%  

                                              = 8000 (This does not reduces her basis)

Final distribution = 20,000 - 6000 - 8000 = 6,000

This reduces her basis.

a. Dividend income = $8,000

Return on capital = $6,000 + $6,000 = $12,000

b. Basis = $40,000 - $6,000 - $6,000 = $28,000

Thus, Amount or dividend income is $8000 and basis is $28,000.

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The intrinsic value (not market value) of an asset is the present value of all expected cash flow it is expected to generate. Identify and carefully explain at least three principles of finance in that statement.

Answers

The three principals of finance in the given statement are time value of money, cash flow and risk and return.

Time value of money is the concept that a sum of money is worth more now than the same sum will be at a future date due to its earnings potential in the interim.

Cash flow means the amount of cash or cash equivalents that go in and out of a company.

Risk and return refers to income from a security after a defined period of time on the other hand, risk refers to the uncertainty that the return may not be received. The greater the risk, the higher the potential for profit or loss.

Intrinsic value of an asset measures the value of an investment based on the cash flows. Intrinsic value shows you the asset's value based on an analysis of its actual financial performance.

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True or false: Speculators are especially interested in financial futures because price volatility can lead to potentially highly profitable outcomes.

Answers

The primary participants in the futures market are speculators, Therefore the given statement is true.

Who are speculators?Speculators are sophisticated investors or traders who buy assets for short periods of time and use strategies to profit from price changes. Speculators are important to markets because they provide liquidity while also taking on market risk.A speculator is someone who is willing to risk losing a large sum of money in exchange for the possibility of making even more money. A speculator, for example, may invest in a risky stock in the hope of eventually selling it for a profit.Investors grow their wealth in a systematic manner, purchasing assets with reasonable levels of risk in exchange for long-term growth. Speculators, on the other hand, purchase assets that may experience rapid growth but may also lose their entire value if they are not properly managed.

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