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2 years ago

Suppose profits are less than zero. From this it follows that:

Business

1 answer:

Vladimir [108]2 years ago

6 0

Answer:

D. the sum of employee compensation, rents, and interest exceeds aggregate income.

Explanation:

Aggregate income is defined as the total income in an economy of a company that does not take into account inflation, taxes, or double counting.

Aggregate income is equal to summation of employee compensation, interest, rent, and profits.

If profits are less than zero it follows that the other elements of aggregate income, that is the sum of employee compensation, rents, and interest exceeds aggregate income.

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f covered interest arbitrage opportunities do not exist, Group of answer choices interest rate parity holds. interest rate parit

kodGreya [7K]

Answer: interest rate parity holds

Explanation:

Covered interest arbitrage is a trading strategy that is used by an investor when the person whereby takes advantage of the differences in interest rate between two nations and invest in the currency that brings higher value.

If covered interest arbitrage opportunities do not exist, it simply means that interest rate parity holds.

7 0

2 years ago

Delta Insurers typically affirms or denies claims within 120 days after it receives proof of loss statements. Which statement is

mamaluj [8]

Answer:

Option A is correct

Explanation:

The 2 Option are:

i. The firm Delta Insurers typically affirms claims within 120 days after it receives proof of loss statements

ii. The firm Delta Insurers typically denies claims within 120 days after it receives proof of loss statements.

Delta insurance company is a typical insurance company that operates it business in line with the Insurance practice code in its operation country. Failure of perform those duties strictly will lead to revoke of operational license which will incur consequential loss for the Insurance Company.

Delta Insurers insures against peril of Vehicle, Fire, Burglary, Consequential loss, Business Interruption and so on.

The insurer however have its own mode of settling claims as stated in the Policy form. The statement might be stated in there that "we typically affirms claims within 120 days after we receives proof of loss statements". No insurer can states in its policy form that "we typically affirms claims within 120 days after it receives proof of loss statements", this is against the code of conduct of Insurance business

7 0

1 year ago

Ashley has a large and growing collection of animated movies. She wants to replace her old television with a new LCD model, so s

Vlad [161]

Answer:

Option (D) is correct.

Explanation:

1.We use the formula:

$A=P(1+\frac{r}{100})^{n}$

where

A=future value

P=present value

r=rate of interest

n=time period.

$A=1,060(1.12)^{2}+ 1,060(1.12)^{1} + 1,060$

$A=1,060[(1.12)^{2}+(1.12)^{1} + 1]$

= 1,060 [1.2544 + 1.12 + 1]

= 1,060 × 3.3744

= $3,576.864

Therefore, the amount of $3,576.864 will Ashley have to buy a new LCD TV at the end of three years.

(b) Future value of annuity due = Future value of annuity × (1 + interest rate)

= $3,576.86(1 + 0.12)

= $3,576.86 × 1.12

= $4,006.08

She will save around $4,006.08

4 0

2 years ago

The Maurer Company has a long-term debt ratio of .60 and a current ratio of 1.20. Current liabilities are $940, sales are $5,120

garri49 [273]

Answer:

The amount of the firm's net fixed assets is $4,321

Explanation:

Profit margin = Net income/ Sales

Net income = Profit margin x Sales = 9.30% x $5,120 = $476.16

ROE = Net Income/Equity

Equity = Net Income/ROE = $476.16/16.90% = $2,818

Long-term debt ratio = Long-term debt/Equity

Long-term debt = Long-term debt ratio x Equity = 0.6 x $2,818 = $1,691

Basing on accounting equation:

Total asset =Current Liabilities + Long-term debt + Equity = $940 + $1,691 + $2,818 = $5,449

Current ratio = Current asset/Current Liabilities

Current asset = Current ratio x Current Liabilities = 1.2 x $940 = $1,128

Fixed assets = Total asset - Current asset = $5,449 - $1,128 = $4,321

5 0

2 years ago

Morataya Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the begin

Katena32 [7]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Total Estimated total machine-hours (MHs) 10,000

Estimated total fixed manufacturing overhead cost= $45,800

Total Estimated variable manufacturing overhead cost- per MH= $1.90 + $2.10= $4

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated FIXED manufacturing overhead rate= (45,800/10,000)= $4.58

7 0

2 years ago