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2 years ago

Choose the correct answer in the following statements about financial and real assets.

Business

1 answer:

lora16 [44]2 years ago

3 0

Answer: Please refer to Explanation

Explanation:

A financial asset is a non-physical asset that that gets it's value from a contract that was signed by the parties involved. Financial assets include Bonds, stocks and even cash amongst others.

Real Assets on the other hand are physical assets that can be seen and hence have an inherent value. Examples include buildings and cars.

a. Toyota creates a real asset- the factory. The loan is a financial asset that is created in the transaction.

The factory becomes a real Asset that is tangible and has an inherent value. The loan was created by an agreement between Toyota and the bank and so is a Financial Asset.

b. When the loan is repaid, the financial asset is destroyed but the real asset continues to exist.

When the loan is repaid, Toyota no longer owns that financial asset because it has gone back to the bank. However, the Real Asset which is the factory that they were able to build will remain with Toyota.

c. The cash is a financial asset that is traded in exchange for a real asset, inventory.

As already mentioned, cash is a financial asset. Inventory is a tangible substance with an inherent value not determined by a contract and so is a Physical Asset. Trading cash for Inventory is therefore trading a financial asset for a physical one.

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Scissor Corporation holds assets with a fair value of $150,000 and a book value of $125,000 and liabilities with a book value an

slava [35]

Answer:

$30,000

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the non-controlling interest by using following formula:-

Equity’s Fair Value = Assets Fair Value - Liabilities Fair Value

= $150,000 - $50,000

= $100,000

Paper pays $75,000 for 75% equity and $15,000 for acquire 75% of goodwill.

Non Controlling Interest (In Consolidated Balance Sheet)

=100% - 75% × ( Equity’s Fair Value + Goodwill)

= 25% × ($100,000+$20,000)

= 0.25 × $120,000

= $30,000

3 0

2 years ago

. At the beginning of 2009, a government had a total debt of $540 billion dollars. It ended 2009 with a $6 billion dollar budget

umka21 [38]

Answer:

$526 billion

Explanation:

If at the beginning of 2009, a government had a total debt of $540 billion dollars, and it ended 2009 with a $6 billion dollar budget surplus; then in 2010, its budget surplus reached $8 billion dollars. Then the level of total debt would be decreased because:

When a country runs a budget surplus it has a positive effect of reducing the government total debt level of the country.

Hence, the level of government debt will drop from $540 billion from the beginning of 2009 to $526 billion ($540 - $6 - $8) in 2010

8 0

2 years ago

Read 2 more answers

Prezas Company's balance sheet showed total current assets of $2,500, all of which were required in operations. Its current liab

ipn [44]

Answer:

$1,275

Explanation:

Recall that,

Net operating working assets (NOWC) = Current assets - (current liabilities - notes payable).

Thus,

Given that

Current assets = 2500

Current liabilities = 975 + 250 + 600 = 1825

Notes Payable = 600

Therefore,

NOWC = 2500 - (1825 - 600)

NOWC = 2500 - 1225

NOWC = $1275

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2 years ago

The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient

Phantasy [73]

Answer:

sry I don't know the answer

sry

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2 years ago

On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market and purchase a six-month

Mice21 [21]

Answer:

The question is not complete:

On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market (¥104.91/$) and purchase a six-month forward contract ($0.0095320/¥1) to convert yen into dollars. How much will you receive in U.S. dollars at the end of six months? (Round your answer to 2 decimal places. (e.g., 32.16))

The sum of $650,001.38 would be received in six months

Explanation:

In the first place by buying the yen in the spot market on July 15 ,2016, the amount of yen is computed thus:

$650,000 was at (¥104.91/$) ,which implies that each $ was exchanged for ¥104.91

yen received =$650,000*104.91/1

= ¥ 68,191,500.00

The six month forward contract outcome is as follows:

($0.0095320/¥1)

each Yen was exchanged $0.0095320

dollars received= ¥ 68,191,500.00 *0.0095320/1

=$650,001.38

3 0

2 years ago