Answer:
B) It is reported on the income statement when it pertains to short term investments
Explanation:
Unrealised loss is defined as a reduction in the value of an asset that is held by an investor rather than selling it and realising a loss.
Unrealised loss is also called paper loss. This loss is not realised until the asset is sold.
Unrealised losses are not usually recorded on the income statement unless they intend to be sold in a short time.
When a security is to be sold in the short run it is called a trading security. Trading securities are represented in the income statement as they can increase or reduce income
Answer:
A. If the reserve requirement is 5% then money multiplier is 20 and the the money supply for each reserve requirement is $10,000 billion
B. If the reserve requirement is 10% then money multiplier is 10 and the the money supply for each reserve requirement is $5,000 billion
For a given level of reserves, a lower reserve requirement is associated with a larger money supply. Suppose the Federal Reserve (the Fed) wants to increase the money supply by $500 billion. Again, you can assume that banks do not hold excess reserves and that households do not hold currency. If the reserve requirement is 10%, the Fed will use open-market operations to buy $50 billion worth of U.S. government bonds. Now, suppose that rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, in addition to the required reserves of 10%, banks hold an additional 40% of their deposits as reserves. This increase in the reserve ratio causes the money multiplier to fall to 2. Under these conditions, the Fed would need to buy $250 billion worth of U.S. government bonds in order to increase the money supply by $500 billion.
The following statements help to explain why the Fed cannot precisely control the money supply are:
B- The Fed cannot control the amount of money that households choose to hold as currency.
C- The Fed cannot control whether and to what extent banks hold excess reserves.
Explanation:
A. If the reserve requirement is 5% then money multiplier is 20 (= 100%:5%) and the the money supply for each reserve requirement is $10,000 billion (=$500 billion x 20)
B. If the reserve requirement is 10% then money multiplier is 10 (= 100%:10%) and the the money supply for each reserve requirement is $5,000 billion (=$500 billion x 10)
Answer:
Owner's capital account is increased by $2,235,000.
Explanation:
At the end of the period the closing entries are made to close the temporary accounts of Revenue and expenses and transfer the balance to retained earning or owners capital account.
Net income for the year = Total revenue - Total Expenses
Net income for the year = $12,840,000 - 9,975,000
Net income for the year = $2,865,000
Changes in owner's capital account during the period = net income / loss - drawings during the period
Changes in owner's capital account during the period = $2,865,000 - $630,000
Changes in owner's capital account during the period = $2,235,000
Answer: (B) Utilitarian Ethics
Explanation:
The Utilitarian ethics is one of the type of ethical concept that helps in determining the right outcome from the given consequences.
It is one of the form of moral framework that helps in producing the moral reasoning approach that is specifically used in an organization for the business purpose.
According to the given question, the solid tool is one an organization that producing various types of solid's products and the helps in justifying from the perspective of utilitarian Ethics.
Therefore, Option (B) is correct answer.
False.
IRA = Individual Retirement Account
Companies that offer plans offer 401k.
