Which of the following statements about the difference between forwards and futures is most accurate?
A)If interest rates are constant then forward and futures prices are the same.
B) Both forwards and futures contracts are marked-to-market.B)
C) A strong positive correlation between interest rates and the underlying asset price implies that the futures price will be lower than the corresponding forward price.
D) Before maturity, the value of a forward contract is the same as the value of the corresponding futures contract.

Answers

Answer 1

The following statement about the difference between forwards and futures that is most accurate is, B) Both forwards and futures contracts are marked-to-market.

Forwards and futures are the two main types of financial contracts that enable buyers and sellers to exchange assets at a predetermined price at a future date. Forward contracts are customized contracts that are traded over the counter, while futures contracts are standardized contracts that are traded on exchanges.

The differences between forwards and futures are given below:

1. Forward contracts can be customized while futures contracts are standardized.

2. The prices of forward contracts are not public, but the prices of futures contracts are public.

3. Forward contracts are traded over the counter, while futures contracts are traded on exchanges.

4. Futures contracts are marked-to-market every day while forward contracts are not marked-to-market.

5. Forward contracts do not require an upfront payment, but futures contracts require an upfront payment.

6. The risk of default is higher in forward contracts as compared to futures contracts.

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Related Questions

Decision Point: Using the Association to Grow the Business Several months after starting the advertising campaign, you meet with the director again. She says, "Our consumers are finally associating our cookie with a good-tasting experience over time. We see this in increased sales as well." She continues, "We feel that we can use this newly forged association in the consumer's mind between the cookie brand name and good taste in other ways to help grow our business, but we're not sure how. I'd like you to come up with some ideas." Which of the following options is the best choice to use the brand and its association in the consumer's mind with good taste? Select an option from the choices below and click Submit. License the brand to another company to use on a potato chip. Develop a line extension using the brand on a chocolate chip cookie. License the brand to a company that wants to use it on their lower cost baked goods.

Answers

The best choice to utilize the brand and its association with good taste in the consumer's mind would be to develop a line extension using the brand on a chocolate chip cookie.  Option B.

By developing a line extension, the company can leverage the positive association consumers have between the brand name and good taste to introduce a new product variant that aligns with their existing offerings. Chocolate chip cookies are a natural fit as they maintain the core essence of the original cookie while adding a popular flavor variation.

This allows the company to tap into the existing customer base who already associate the brand with good taste and provide them with a new product option to explore.

Introducing a line extension also provides an opportunity for the company to expand its market reach and capture new customers who may be attracted to the brand's reputation for quality and taste. By leveraging the positive brand association, the company can differentiate its chocolate chip cookies from competitors and establish a strong presence in the market.

On the other hand, licensing the brand to another company to use on a potato chip or licensing it to a company that wants to use it on their lower-cost baked goods may dilute the brand's association with good taste. Associating the brand with lower-cost or unrelated products could create confusion among consumers and weaken the brand's overall image.

Therefore, developing a line extension with a chocolate chip cookie aligns with the brand's existing identity, capitalizes on the positive association with good taste, and provides the company with the opportunity to expand its product portfolio while maintaining brand consistency and consumer loyalty. So Option B is correct.

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an exclusive right-to-buy (buyer agency) contract may :

Answers

An exclusive right-to-buy (buyer agency) contract may provide the following benefits and obligations for the buyer: The exclusive right-to-buy contract establishes a formal agreement between a buyer and a real estate agent or broker.

It grants the buyer the exclusive right to engage the services of the designated agent for a specified period. During this time, the agent is obligated to act solely in the best interest of the buyer and assist them in finding and purchasing a property.

By entering into an exclusive right-to-buy contract, the buyer benefits from the undivided loyalty and dedicated representation of the agent. The agent is committed to helping the buyer negotiate favorable terms, conduct property searches, arrange viewings, provide market analysis, and guide them through the purchasing process.

On the other hand, the buyer is generally obligated to work exclusively with the designated agent and refrain from seeking assistance from other agents for the designated period. This exclusivity ensures that the agent's efforts and resources are focused solely on the buyer's needs.

It's important for buyers to carefully review and understand the terms and conditions of the exclusive right-to-buy contract before entering into it, as it outlines the scope of the agent's responsibilities, duration of the agreement, compensation terms, and any additional obligations or contingencies.

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in about 100 words explain who owns, controls and is responsible for any debt, in a sloe proprietorship and in a partnership​.

Answers

Legally, sole proprietors bear unlimited responsibility for all business debts. Their assets, both personal and business, are at risk.

Who is the sole proprietor of a business?

A sole proprietor is a person who owns an unincorporated business on their own. However, if you treat a domestic limited liability company (LLC) as a corporation, you will not be treated as a sole proprietor even if you are the LLC's sole member.

The term "limitless obligation" refers to the full legal liability that business partners and entrepreneurs anticipate for all business obligations. This chance isn't covered, and responsibilities can be paid through the seizure and proposition of owners' own special assets, which isn't equivalent to the renowned confined liability business structure.

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give four basic functions of the government​

Answers

the 4 functions of government are:

1.maintain and make laws

2.raise taxes

3.protect environment

4.national defence

Answer:

listening to the citizens before making decisions .Helping in the development activities .making suitable rules and regulations for the country .Providing citizenship cards to the every citizens of the country .

hope it is helpful to you

What is the Importance of public sector ??

Answers

It is important to have Public Sector in our society because,The public sector provides many essential things at quite a reasonable cost which the private sector cannot. The public sector has the benefit of the people above everything because its purpose is not to earn profits but to benefit the people at all costs

If you buy a new video game , you cannnot pay your cell phone bill . This example of

Answers

Answer:

Explanation:

This situation can be considered an example of a trade-off or opportunity cost. A trade-off occurs when you have to give up one thing in order to gain or prioritize another. In this case, choosing to buy a new video game means sacrificing the ability to pay your cell phone bill. You have to make a decision and allocate your limited resources (money) between different options, and choosing one option means forgoing the benefits or costs associated with the other option.

1. set acceptable audit risk and decide preliminary judgment about materiality and performance materiality.

Answers

The auditor's first assessment of materiality is the largest deviation from the truth that they feel the financial statements might have without having an impact on the choices of reasonable users.

How do you set performance materiality?

In order to compute performance materiality, the overall materiality value is often multiplied by a percentage between 50% and 75%. This computation is not mechanical because expert judgement is also used.

The auditor first evaluates the total degree of materiality for each financial statement balance before reaching a preliminary determination concerning materiality. For the income statement and statement of financial position, respectively, it may be anticipated that mistakes totaling R100 000 and R200 000, respectively, would be considered substantial.

For the financial statements as a whole, a preliminary determination of materiality is made. The greatest amount of misrepresentation that would be deemed substantial for a specific audit segment or account balance is known as performance materiality.

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Compared to rail transportation, one of the advantages of shipping by truck is that trucks

Answers

Compared to rail transportation, one of the advantages of shipping by truck is that trucks "Can reach more destinations".

What is rail transportation and road transportation?Rail transportation: Train travel is another name for rail travel. It is a mode of transportation that uses cars that travel on tracks (rails or railroads). It is one of the most significant, frequently used, and highly affordable methods of transportation for both people and products across long and short distances.Road transportation: Road transport refers to the movement of people and goods across a network of roads. A road is a path between two points that has been paved or otherwise improved to allow travel by both motorised and non-motorised carriages.

The advantages of raid transport over rail transport are-

Road construction is substantially less expensive than building railroads. In hilly and undulating terrain, roads may be built with ease. Highways connect railway stations, airports, and seaports, acting as a feeder to other forms of transportation.They offer individuals and vehicles to commute to a variety of areas and assist them in getting there without any problems.Road transport is the practice of moving goods or people along a road network from one location to another.

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Drag each tile to the correct box
determine the type of risk each investment is likely to incur
business risk
call risk
liquidity risk
taxability risk
lee purchased municipal bonds
issued by a government entity.
valerie bought bonds that include
a feature to pay the bonds back
earlier than the maturity date.
brian used most of his savings to
purchase the stock of a big
company
aj invested all of his savings in
a rental home.

Answers

The kind of risk that the given investments might incur are:

Lee purchased municipal bonds issued by a government entity - Liquidity risk. Valerie bought bonds that include a feature to pay the bonds back earlier than the maturity date - Call risk. Brian used most of his savings to purchase the stock of a big company - Business risk. Aj invested all of his savings in a rental home - Taxability risk.

Which risks do these investments face?

Municipal bonds are usually illiquid which means that buying them comes with liquidity risk. Buying stock comes with business risk because the stock might lose value if the company performs poorly.

Call risk occurs when the issuer of a bond can pay back the bond before it matures.

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Answer:

C. B. A. D.

expiation:

in that order

Powers company reported net sales of 1280000, average accounts receivable, net of 70500 and income of 54425. The accounts receivable turnover ratio is:

Answers

If Powers Corporation had net sales of $1,280,000, an average receivables, net of $70,500, a net income of $54,425 the customers receivable turnover proportion account be 18.14.

$1,280,000/$70,500 = 18.14.

Accounting has three types of accounts. Accounting has his three types of accounts:

Real, personal, titular. Real money accounts are then divided into two subcategories.

Intangible physical accounts and tangible physical accounts. Natural, representative, and artificial are his three other subtypes of personal accounts.

Net credit sales are calculated by subtracting credit sales returns and value adjustments from gross sales.

We assume zero credit sales returns or value adjustments as no information has been provided on this. For this:

$1,280,000 equals net credit sales.

A typical accounts receivable calculation is:

Average demand is equal (initial demand + final demand).

Dividing the net loan turnover ratio by the average amount borrowed gives the accounts receivable turnover ratio.

Accounts receivable revenue is $1,280,000 divided by $75,000.

18.14 is the accounts receivable turnover ratio.

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Which type of business organisation is the most suitable for a large electronics
manufacturer?
A. partnership
B. private limited company
C. public limited company
D. sole trader

Answers

Answer:

C. public limited company

Explanation:

A public limited company is a business ownership structure that provides a legal distinction between the business and its owners.  The company is a legal person with the right to do business, acquire assets or incur liabilities. Unlike a private limited company,  public limited company shares trade with ease at the stock exchange.

Due to their listing in the stock exchange,  public limited companies can raise capital with much ease. The corporation only needs to comply with the regulation of the stock market to raise more finances. Public limited compies are suited for large organizations that require huge capital to finance their operations and expansions.

on november 1, alan company signed a 120-day, 12% note payable, with a face value of $19,800. what is the adjusting entry for the accrued interest at december 31 on the note? (use 360 days a year.) multiple choice debit interest expense, $396; credit interest payable, $396. debit interest payable, $792; credit interest expense, $792. debit interest payable, $528; credit interest expense, $528. no adjusting entry is required. debit interest expense, $264; credit interest payable, $264.

Answers

Receivable Note Debit Accrued Interest -$402.6

-$402.6 in Credit Interest Income

What is adjusting entry?Adjusting entries are modifications to previously written entries in your diary. They specifically ensure that the data you have recorded corresponds to the proper accounting periods.There are five categories for adjustments entries: Unearned revenue, expenses that have already been incurred, prepaid expenses, and depreciation

Creation of the adjustment item on the note for Alan Company for the accrued interest as of December 31

Interest earned through December 31 will be as follows:

30 + 31 = 61 days

= (19,800 x 12% x 61 days) / 360 days

=$144936 ÷ 360 days

=$402.6

As a result, the adjusting entry for Alan Company will be:

Receivable Note Accrued Interest Debit: $402.6.

-$402.6 in Credit Interest Income .

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you are working with a client who is new to shopping ads and you noticed that the inventory data the client plans to use for their product feed isn't accurate. if a product feed is uploaded with data quality issues, what are two issues that might arise? choose two

Answers

If product feed is uploaded with the data quality issues, the two issues that might arise are quality management and demand.

What is quality management?

Quality management ensures that a business, a product, or a service always operates as intended. Its four essential components are quality planning, assurance, control, and improvement. The objective of quality management is to enhance the caliber of the delivered goods and services as well as the processes used to achieve it. Therefore, quality management makes use of quality assurance and control for both processes and products in order to attain more consistent quality. Quality control is one of the elements of quality management. What a consumer desires and is prepared to pay for determines quality. It is an assurance given to a customer in the market, whether they are well-known or not, in writing or verbally. A product's quality can be determined by how well it serves its intended function.

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Termites have a protozoan symbiote in their gut that breaks down the cellulose in wood, allowing the termite to obtain nutrients from the wood while the protozoan is protected from the external environment. Therefore, the termite and the protozoan are:______________

Answers

The termite and the protozoan are Inseparable.

What is protozoan?

Single-celled organisms are called protozoa. They appear in a wide variety of sizes and shapes, ranging from the flexible amoeba to the fixed-shaped, intricately arranged unicellular organism.

Therefore,

Termites have a protozoan symbiote in their gut that breaks down the cellulose in wood, allowing the termite to obtain nutrients from the wood while the protozoan is protected from the external environment. Therefore, the termite and the protozoan are Inseparable.

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HELP ILL GIVE A CROWN TO WHOEVER IS RIGHT BUT PLZ HeLP

Alejandro lives in a small apartment, within walking distance to school. He takes the bus to work where he makes $10 per hour after taxes and works 30 hours per week. He wants to save money to buy a $6000 car within the next 2 years. How could a monthly budget be created to help Alejandro meet his financial goals? Select the best option.
Monthly Budget

Budget A
Budget B
Budget C
Budget D
Income
$1,500
$1,500
$1,200
$1,200
Expenses-
Rent
Utilities
Food
Bus Pass
Savings

$600
$100
$150

$25
$250

$600
$100
$550

$25
$250

$600
$100
$250

$25
$250

$600
$100
$150

$25
$250

a.
Budget A
b.
Budget B
c.
Budget C
d.
Budget D



Please select the best answer from the choices provided


A
B
C
D

Answers

Answer:

um look and ctrl C my link and it have the answer

Explanation:

um that should also give ur answer too

https://quizlet.com/68451633/personal-finance-flash-cards/

Answer:

The answer is Budget D

Explanation:

Madsen Motors's bonds have 18 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 7%, and the yield to maturity is 8%. What is the bond's current market price? Round your answer to the nearest cent.

Answers

Answer:

$906.30

Explanation:

Face value (FV) = $1000

Coupon payment (C) = 7% of $1000 = $70

Yield to maturity (r) = 8% = 0.08

t = 18

Number of compounding periods (n) = 1 (annually)

Using the relation:

C[( 1 - (1 + r/n)^-nt) / (r/n)] + FV / (1 + r/n)^nt

70[(1 - (1 + 0.08)^-1*18) / (0.08/1)] + 1000 / (1 + 0.08/1)^1*18

70[1 - (1.08)^-18) / 0.08] + 1000 / 1.08^18

70[(1 - 0.2502490)/0.08] + (1000 / 3.99601949918)

70(9.3718871) + 250.24902

= $906.281117

= $906.30

Question 1 of 10


Why can consumers have influence over politicians?


O A. Government agencies are required to address consumer


complaints.


B. Consumers are able to boycott politicians' re-election campaigns.


C. Corporations use profits from consumers to lobby the


government.


D. Politicians rely on the votes of consumers to keep them in office.


SUBMIT

Answers

Answer:

it's most likely B or D. but you need to double check

Answer:

D. Politicians rely on the votes of consumers to keep them in office.

Explanation: i took the test.

Question 1 of 10Why can consumers have influence over politicians?O A. Government agencies are required

Introduction Develop an introductory paragraph keeping in mind that research is important when choosing your Stock Market Game portfolio and investing successfully for your own future.

Answers

Equity purchasing and selling decisions are made by investors and traders utilizing stock analysis. Investors and traders can obtain an advantage in the markets and make wise judgments by analyzing and comparing historical and current data. It is crucial to do your research on the stock market before you invest.

What is Stock Market Game?

The Stock Market Game is a virtual recreation of the world's capital markets that introduces economics, investing, and personal finance to children in grades 4 through 12. It has helped approximately 20 million kids get ready for a future when they can support themselves financially.

By simulating the stock and bond markets, it introduces young people to investing and saving. Students get access to a $100,000 virtual financial portfolio that they can trade and manage.

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A couple is going through a divorce. Which of the following phrases represents how both sides want to reach agreement?

Answers

Problem there is no following phrases

if long-range aggregate supply (lras) shifts right, we know for certain that there has been a. economic growth. b. an increase in ad. c. a decrease in aggregate demand (ad). d. an increase in the price level. e. a decrease in the price level.

Answers

If long-run aggregate supply (lras) shifts right, we know for certain that there has been an increase in ad. Option b

What is the  long-run aggregate supply?

This a curve that depicts the correlation between price level and real GDP that would exist if all prices, including nominal wages, were completely flexible; prices can vary along the LRAS, but production cannot because it represents the output at full employment.

As productivity rises or the cost of essential inputs decreases, the aggregate supply curve shifts to the right, allowing for a combination of lower inflation, more production, and lower unemployment.

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ASAP!!!!!!!! Would give a lot of points!!!!!
Assume that the output gap is estimated to be $156 billion and the government decides to take action. If the marginal propensity to consume is 0.75, by how much would it need to change government spending to close the gap? Show your work.

Answers

Answer:

$39 billion

Explanation:

Given marginal propensity to consume is 0.75,

the Spending Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 1 / 0.25 = 4

To close a gap of $156 billion, the government needs to change spending by $156 / Spending Multiplier

= $156 /4

= $39 billion

metaverse inc uses 58% common stock and 42% debt to finance its operations. the after-tax cost of debt is 5.4% and the cost of equity is 15.3%. management is considering a project that will produce a cash inflow of $49,600 in the first year. the cash inflows will then grow at 2.5% per year forever. what is the maximum amount the firm can initially invest in this project to avoid a negative net present value for the project? question 43 options: $599,032 $541,414 $411,406 $573,941 $482,979

Answers

$777,429.77 is the maximum amount the firm can initially invest in this project to avoid a negative net present value for the project.

To calculate the maximum amount the firm can initially invest in the project without incurring a negative net present value (NPV), we need to determine the project's NPV using the firm's weighted average cost of capital (WACC).

The WACC is calculated by multiplying the cost of equity by the weight of equity and adding it to the after-tax cost of debt multiplied by the weight of debt. In this case, the WACC can be calculated as follows:

WACC = (Cost of Equity * Weight of Equity) + (After-tax Cost of Debt * Weight of Debt)

= (0.153 * 0.58) + (0.054 * 0.42)

= 0.08874 or 8.874%

Next, we use the WACC to calculate the project's NPV. Since the cash inflows are expected to grow at a constant rate of 2.5% per year forever, we can use the perpetuity formula:

NPV = Cash Inflow / (WACC - Growth Rate)

= $49,600 / (0.08874 - 0.025)

= $49,600 / 0.06374

≈ $777,429.77

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Does the state of the US economy have an effect on local businesses started by entrepreneurs? Please explain your answer.​

Answers

The state of the United States' economy has an effect on local businesses that are started by entrepreneurs as it determines the amount of sales that the local business would make.

How does the U.S. economy affect local businesses?

The state of the U.S. economy determines the income level of the average person in America. If the economy is doing well, then people generally have more income than if the economy is performing poorly.

When the economy is doing well and people have more income, they will be able to buy more goods and services from businesses including the local businesses established by entrepreneurs. If the reverse is the case, then local businesses would generally suffer when the economy is bad and people have less income.

There are also local businesses that see their income increase when the economy is doing poorly for instance, financial planners and health care.

In conclusion, local businesses started by entrepreneurs get affected by the state of the U.S. economy.

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1. Based on the profit-loss statement, does Rings and Things have a positive or negative cash flow?
Why?

Answers

Answer:

They have a negative cash flow.

Explanation:

Because their net operating activities is not breaking even, in other words, they are losing money.

Playbill magazine reported that the mean annual household income of its readers is $119,155 (Playbill, January 2006). Assume this estimate of the mean annual household income is based on a sample of 80 households and, based on past studies, the population standard deviation is known to be $30,000. [15 pts] a. Develop a 90% confidence interval estimate of the population mean. [5 pts] b. Develop a 95\% confidence interval estimate of the population mean. [5 pts] c. Develop a 99\% confidence interval estimate of the population mean.

Answers

Estimate population means annual household income using sample data, using confidence intervals at 90%, 95%, and 99%.

a. For a 90% confidence interval, we can use the formula:

Confidence interval = sample mean ± (critical value * standard error)

The critical value for a 90% confidence level is obtained from the t-distribution with degrees of freedom (n - 1).

With a sample size of 80, the degrees of freedom are 79. The standard error is the population standard deviation divided by the square root of the sample size.

b. Similarly, for a 95% confidence interval, the critical value is obtained from the t-distribution with 79 degrees of freedom.

c. For a 99% confidence interval, the critical value is obtained from the t-distribution with 79 degrees of freedom.

By plugging in the values and calculating the confidence intervals using the formulas mentioned above, we can obtain the range of the population mean at each confidence level.

In summary, confidence intervals are constructed to estimate the population's mean annual household income.

The intervals at 90%, 95%, and 99% confidence levels provide ranges within which the true population mean is likely to lie, based on the given sample data and known population standard deviation.

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On September 1, 20X1, Upholstery Masters purchased a one-year insurance policy for $360. The correct adjusting entry on December 31, 20X1, is:

Answers

Upholstery Masters will record an adjusting entry on December 31 of Debit to Insurance expense and credit to Prepaid insurance of $360.

What would Upholstery Masters record?

The insurance is for a year so the amount that will be recorded in 20X1 will be for months in 20X1.

The number of months used in 20X1 was 4 months from September to Decemeber.

The relevant amount will be:

= 360 / 12 x 4 months

= $120

This amount will be debited to the Insurance expense account and credited to the Prepaid insurance account.

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3. How would the length of the shadow at noon compare with the length of the shadow in the late afternoon?

Answers

In the morning your shadow will point west and in the afternoon it will point east. If your shadow is long, it is near sunrise or sunset. Your shadow is shortest around noon

The length of the shadow at noon would is quite different from the length of shadow in late afternoon.

What is Shadow?

A shadow is a dark spot that is created when light is blocked.

The light could be blocked by an object thereby creating a shadow.

The length of shadow varies depending on the angle of the light.

Therefore, the length of the shadow at noon would is quite different from the length of shadow in late afternoon.

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insurers offering variable annuities charge a number of fees and expenses. one category of fees and expenses is charged to cover the cost of record keeping, paperwork, and periodic reports to annuity owners. this expense is the

Answers

Numerous costs and fees are assessed by insurers who offer variable annuities. The cost of maintaining records, completing paperwork, and providing periodic reports to annuity owners is covered by a single category of fees and costs. The administrative cost is this outlay.

What Exactly Do Administrative Charges Entail?

An insurer or other entity responsible for the administration of an insurance policy may levy an administration fee to cover costs related to record-keeping and/or additional administrative fees.

An "administrative charge" is what?

Administrative costs are those incurred during ordinary business operations. Administrative expenses could either be fixed or semi-variable. The usual examples are rent, utilities, equipment, supplies, insurance policies, salary, benefits, and legal aid.

How is the administration's cost determined?

Selling and administrative costs consist of all costs, including non-cash ones like depreciation and amortization. To calculate selling and administrative costs, all expenses that are not directly related to the creation of the company's product, including but not limited to those listed here, need only be added together.

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Garrett has a deferred tax asset of $20,000. At the end of the year, Garrett has determined that it is more likely than not that $4,000 of the deferred tax asset will not be realized. The deferred tax asset should be reported in the balance sheet at

Answers

Garrett should adjust the carrying value of the deferred tax asset to $16,000 and report it as a reduction of income tax receivable or an increase in income tax expense on the balance sheet.

When a deferred tax asset is recorded on the balance sheet, it represents a future tax benefit that the company will receive. However, if it is deemed more likely than not that a portion of the deferred tax asset will not be realized, the company must adjust the carrying value of the asset.

In the scenario presented, Garrett has a deferred tax asset of $20,000, but it is more likely than not that $4,000 of this asset will not be realized. Therefore, Garrett must adjust the carrying value of the deferred tax asset to reflect this expectation. The revised carrying value of the deferred tax asset will be $16,000 ($20,000 - $4,000).

The adjusted amount of the deferred tax asset of $16,000 should be reported on the balance sheet as a reduction of income tax receivable or as an increase in income tax expense. This adjustment is necessary to ensure that the financial statements accurately reflect the expected future tax benefits and the impact on the company's financial position.

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how to convert ration 13:25 into fraction,decimal and percentage pleas help and with full solving and explanation ​

Answers

Answer:

13/250.5252%

Explanation:

13:25 is just a fraction (13/25)

13:25= 0.52 (decimal)

So when you divide 13 by 25, you get  0.52. To make that into a percentage, you just multiply it by 100 (move the decimal over 2 places to the left). That gives you 52%

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