How do interest rates affect returns on other investments?
What will be an ideal response?
Answer: The expected returns on all investments are related. What you earn on one investment determines what you demand on another. When interest rates go up, investors demand a higher return on all other investments, and when interest rates go down, the return investors demand on other investments goes down. In effect, all the different investments compete for your investment dollars, and when interest rates go up, the other investments have to match that increase.
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On June 1, Brooktown levied special assessments in the amount of $500,000, payable in 10 equal annual installments beginning on June 30. The assessment installments are intended to pay principal and interest on special assessment bonds for which the town has pledged its full faith and credit should assessments be insufficient. Assuming no allowance for uncollectible receivables, the journal entry in the debt service fund on June 1 would include:
A. A debit to Assessments Receivable-Current for $500,000. B. A credit to Revenues for $500,000. C. A debit to Assessments Receivable-Current for $50,000. D. No journal entry is made in the debt service fund because special assessments are used.
Which conflict management style assertively attempts to resolve conflict by working together with the other person to find an acceptable solution to all parties?
a. accommodating b. negotiating c. forcing d. collaborating
Coble Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated shaper. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead$28,560? Capacity of the shaper 280?hoursActual results: Sales$93,000? Direct materials$11,900? Direct labor$17,200? Actual total fixed manufacturing overhead$28,560? Selling and administrative expense$4600? Actual hours of shaper use 240?hoursThe manufacturing overhead applied is closest to:
A. $28,560 B. $24,480 C. $13,286 D. $4600
Why is land classified separately from other tangible long-term assets?
What will be an ideal response?