What is Bill’s ending owner’s equity on a statement of changes in owner's equity if his records show $8,000 in investment by owner, $25,000 in net income, $9,000 in expenses and $4,000 in owner drawings?
Answers
Bill's ending owner's equity on a statement of changes in owner's equity would be $20,000.
To calculate Bill's ending owner's equity, we need to take into account the various components of changes in owner's equity. The formula for calculating ending owner's equity is:
Ending Owner's Equity = Beginning Owner's Equity + Additional Investments - Owner Drawings + Net Income - Expenses
Given the information provided:
Beginning Owner's Equity = $0 (since it is not mentioned)
Additional Investments = $8,000
Owner Drawings = $4,000
Net Income = $25,000
Expenses = $9,000
Plugging these values into the formula:
Ending Owner's Equity = $0 + $8,000 - $4,000 + $25,000 - $9,000
Ending Owner's Equity = $20,000
Therefore, Bill's ending owner's equity on a statement of changes in owner's equity would be $20,000.
To know more about equity click here:
brainly.com/question/31368392
#SPJ11
Related Questions
In which career is it most important to exercise and take physical care of yourself?
A) therapist
B) child care provider
C) Interviewer
D) management
Answers
Answer: therapist
Explanation: i just took a test over this <3
Use the drop-down menus to explain how to create a subreport. 1. Open the table in view. 2. On the Design tab, click Min Grouping & Totals. 3. Select "with a footer section" from a drop-down menu in a pane below. 4. Next, choose Subform/Subreport from the command group. 5. Place the cursor at an insertion point. Then, to create a space. 6. In the Subreport Wizard, choose what you want to include in the subreport from the main table. 7. Once you are satisfied, create a name for the subreport, and click Finish. DO NOT PUT ANY FILES JUST THE ANSWER.
Answers
Answer:
design
group and sort
control
click and drag
Explanation:
gg
A ________ VMS consists of independent firms at different levels of production and distribution who join together through formal agreements to obtain more economies or sales impact than each could achieve alone.
Answers
A contractual Vertical Marketing System (VMS) is a type of marketing system where independent firms at different levels of production and distribution come together to form a mutually beneficial relationship.
These firms join together through formal agreements that establish a coordinated and collaborative approach to marketing, production, and distribution. This approach enables each firm to leverage the strengths and capabilities of others, resulting in greater economies of scale and sales impact than any firm could achieve on its own.
In a contractual VMS, the participating firms retain their independence, but their efforts are coordinated to achieve common goals. Examples of contractual VMS include franchise organizations, wholesaler-sponsored voluntary chains, and retailer cooperatives.
Learn more about Vertical Marketing System
https://brainly.com/question/29489214
#SPJ4
Marius has been brought in as a consultant for a large organization. He is tasked with identifying the goals, policies, and action sequences the company should take to offset competitive challenges. Marius will be implementingMultiple ChoiceOption 1: operational management.Option 2: transactional management.Option 3: management by objectives.Option 4: process mapping.Option 5: strategic management.
Answers
Because Marius is tasked with identifying of goals, policies and action, then, he will be implementing a Strategic Management.
What is Strategic Management?A Strategic management means a strategies implemented to achieve a better performance and competitive advantage for an organisation.
The process of a strategic management includes
Defining the Mission StatementAnalysing the EnvironmentOrganisational Self-Assessment Establishing Goals and Objectives Formulating StrategyIn conclusion, since he is tasked with identifying of goals, policies and action, then, he will be implementing a Strategic Management.
Read more about Strategic Management
brainly.com/question/24845876
Rising interest rates have made borrowing more costly to consumers. As a result
of the most recent increase in interest rates, borrowing and consumption have
fallen throughout the economy, triggering a contractionary period. Growing
uneasy, citizens have been asking Congress to make an official statement as to
how long this contractionary period is expected to last. Which of the following is
an appropriate response?
Answers
Answer:
it depends on the measures taken to ensure that economy is stable.
Answer:
1. it is difficult to say since contractionary periods have varying lengths in different business cycles.
2. shock
3. high unemployment
4. two
5. expansion stage of the business cycle
Explanation:
just took it
a financial plan is most influenced by
Answers
Answer: priorities and goals
Explanation: because
The financial plan is most influenced by priorities and goals Option(b) is correct.
What does Financial Plan means?Overall utilization, a financial plan is a complete assessment of a singular's ongoing compensation and future financial state by utilizing current known factors to foresee future pay, resource values and withdrawal plans.
In business, a financial plan can allude to the three essential financial assertions monetary record, pay explanation, and income proclamation) made inside a field-tested strategy. Financial estimate or financial plan can likewise allude to a yearly projection of pay and costs for an organization, division, or division.
A financial plan can likewise be an assessment of money needs and a choice on the most proficient method to raise the money, like through getting or giving extra offers in an organization A financial plan might contain forthcoming financial explanations, which are comparative, however unique, than a financial plan. Financial plans are the whole financial bookkeeping outline of an organization. Complete financial plans contain all periods and exchange types.
Therefore Option(b) is correct.
Learn more about Financial plan here:
brainly.com/question/1489472
#SPJ5
Requiring managers to prepare the budgets from scratch or zero-base may help them to overcome the problem of:
Answers
Answer: Excessive cost
Explanation:
Zero-based budgeting is the sort of budgeting where when income is subtracted from expenses it gives zero. This sort of budgeting puts a measure of the expenses, it ensures the expenses matches the income. The purpose of the budget plan is to justify expenses and optimize cost, thereby look out for cost effective ways to plan and avoid inflated budgets. It primarily guides against excessive costs on projects.
3
Roscoe is helping his cousin redesign her family room. They work together to select a white leather couch, two white brocade chairs, and a large
white rug. They pick out some white throw pillows with different textures--some are knitted, and others are linen. Which BEST describes the
color scheme that Roscoe is creating?
A.
monochromatic
B.
complementary
OC.
primary
D.
analogous
Kk
Answers
Answer: Monochromatic
Explanation: Mono = 1, Chromatic = color: Everything is white.
If a country has a comparative advantage in the production of some good then A. that country can produce the good at a lower opportunity cost compared to other producers. B. that country should specialize in the production of that good and not trade with other nations so that they can keep all the gains for themselves. C. that country should let other nations produce that good so that they may focus on new products that will expand job opportunities for their citizens. D. All of the above.
Answers
Answer:
Explanation:
C.
A country can produce a good at a lower opportunity cost than other producers if it has a comparative advantage in producing that good. As a result, choice (A) is the right response.
What is comparative advantage?When manufacturing a specific good, agents in an economic model have a comparative advantage over rivals if they can do so at a lesser opportunity cost or autarky price, that is, at a lower relative marginal cost before the trade.
Comparative advantage is the term used to express the economic reality of trade-related employment advantages for individuals, businesses, or nations that result from variations in their factor endowments or technology advancement.
The classical theory of comparative advantage was created by David Ricardo in 1817 to explain why nations engage in international trade even when their employees are more effective at producing each and every good than those in other nations.
Hence, option (A) is the right choice.
Learn more about comparative advantage, from:
brainly.com/question/14668211
#SPJ2
What impact will higher wages have on the labor force participation of women? 
Answers
Young black women with college degrees had the highest lifetime incomes but lower labor force participation rates.
In comparison to men, women have fewer opportunities to make money globally. Women are less likely to actively search for work or do paid labor. Compared to 80% of men, only slightly more than 50% of women in the world work. People's labor force involvement varies depending on demographic parameters such sex, birth year, education, marital status, and the presence of young children at home. Low female labor force participation in India is a complex socioeconomic phenomenon caused by factors like rural-urban migration, patriarchal attitudes, and an imbalance in supply and demand. Wages Increase for Men and Women When More Women Work. based on data from 250 U.S. cities over 30 years. The greatest major economic shift during the previous century was probably the rise of women in the paid employment.
To know more about wages on
https://brainly.com/question/29350980
Current challenges in operations management include all of the following except:_________
a. sustainability.
b. increased communication cost.
c. lean operations.
d. mass customization.
e. rapid product development.
Answers
Current challenges in operations management include all of the following except Increased communication cost.
Operation management has a number of difficulties that must be resolved right away to improve performance. Rapid product development, lean operations, sustainability, and mass customization are a few current difficulties in operation management. All of them are fresh approaches that the present needs to adopt. Current operation management does not include higher communication costs.
The management of business operations in order to increase efficiency is referred to as operation management. For increased productivity, the business operations are planned, coordinated, and monitored in this process. By preventing resource waste, operation management seeks to lower costs for the company.
Learn more about operation management here
https://brainly.com/question/12593033
#SPJ4
You have three separate accounts with your bank that you can manipulate with online banking. Account a is a checking account with a $5,245.50, Account b is a personal savings account with a $12,850.25 balance, and account c is a joint college savings account with your 12-year-old son. You move $2,500 from account b to account a to cover an unexpected bill. You also move 1.5% of the remaining balance in account b to account c. What is left in account b after these transfers?
Answers
Answer:
10,194.99625
Explanation:
12,850.25 - 2,500 = 10,350.25
10,350.25 - 1.5%10350.25 = 10,350.25 - 155.25375
= 10,194.99625
P.C.
YOUR TEACHER IS CRAZY BRO...
Answer: 10,195
Explanation: love and trust
a furniture maker has delivered a dining set to the end consumer rather than to the furniture store. the furniture maker is practicing __________.
Answers
The furniture maker is practicing direct-to-consumer (DTC) sales, where they bypass traditional retail channels and sell directly to the end consumer.
This is a growing trend in the industry, allowing furniture makers to have more control over the customer experience, product pricing, and marketing strategies. By using DTC sales, the furniture maker can also save on retail overhead costs and potentially offer lower prices to the consumer. However, it may require additional logistics and shipping capabilities for the furniture maker to successfully execute DTC sales.
Learn more about (DTC)
https://brainly.com/question/14256133
#SPJ4
Does Caroline have any closed accounts? How long does a closed account stay on a person’s credit report?
Answers
Answer:
add yxlhjtxhlxitfitgysouiyfisiyghxjlx iehjjjgjHZ
Explanation:
kydyhshlxluludlidlharuskydykstkdulkSltsluskydhkSORRY FOR THIS
If Volkswagen, a German company, sells a euro-denominated bond in London, the bond is A) Eurobond. B) foreign bond. C) currency bond. D) Duetsche bond.
Answers
If Volkswagen sells a euro-denominated bond in London, the bond is classified as a Eurobond. The answer is Eurobond.
A Eurobond is a type of bond issued in a currency other than the currency of the country or market where the bond is issued. In this case, Volkswagen is a German company, but it issued a bond in euros in London, which is not the currency or market of Germany. Hence, this bond is a Eurobond.
Eurobonds are typically issued by multinational corporations, financial institutions, and governments to access a broader base of international investors and to diversify their funding sources. Eurobonds are often denominated in major currencies such as euros, US dollars, Japanese yen, or British pounds and are usually traded outside the country where they are issued.
In contrast, a foreign bond is a bond issued by a foreign company or government in the domestic market of another country. A currency bond is a bond issued in a particular currency, but it can be issued in any market, including the domestic market of the issuing company or government. Deutsche bond is not a commonly used term in financial markets and does not refer to any specific type of bond.
Click the below link, to learn more about euro-denominated bond:
https://brainly.com/question/14284454
#SPJ11
Complete a departmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $64,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department’s expenses to the two operating departments on the basis of the number of ads placed that promoted a department’s products, and (4) the administrative department’s expenses to the two operating departments based on the amount of sales.
Answers
Question Completion:
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two operating departments for the year 2017
Direct Expenses Square Feet Sales
Department
Advertising $ 18,000 1,120
Administrative 25,000 1,400
Shoes 103,000 7,140 $273,000
Clothing 15,000 4,340 77,000
The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 is an indirect expense to all departments.
Answer:
Marathon Running Shop
Allocation of service departments' costs to the operating departments:
Service Departments Operating Departments Total
Advertising Administrative Shoes Clothing
Departmental $18,000 $25,000 $103,000 $15,000 $161,000
Utilities 5,120 6,400 32,640 19,840 64,000
After Utilities 23,120 31,400 135,640 34,840 $225,000
Advertising -23,120 17,340 5,780 0
Administrative -31,400 24,492 6,908 0
Total allocated costs $177,472 $47,528 $225,000
Explanation:
a) Data and Calculations:
Direct Expenses Square Feet Sales
Department
Advertising $ 18,000 1,120
Administrative 25,000 1,400
Shoes 103,000 7,140 $273,000
Clothing 15,000 4,340 77,000
Total $161,000 14,000 $350,000
Allocation of Utilities Expense of $64,000
Rate
Advertising (1,120/14,000 * $64,000) = $5,120
Administrative (1,400/14,000 * $64,000) = $6,400
Shoes (7,140/14,000 * $64,000) = $32,640
Clothing (4,340/14,000 * $64,000) = $19,840
Advertising $ 18,000 + $5,120 = $23,120
Administrative 25,000 + $6,400 = $31,400
Shoes 103,000 + $32,640 = $135,640
Clothing 15,000 + $19,840 = $34,840
Advertising expenses consumed by:
Shoes 90/120 * $23,120 = $17,340
Clothing 30/120 * $23,120 = $5,780
Administrative expenses consumed by:
Shoes $273,000/$350,000 * $31,400 = $24,492
Clothing $77,000/$350,000 * $31,400 = $6,908
When writing a check...
Spell out the dollars and cents in the short box next to the $ symbol
Spell out the dollars and cents on the long line that ends in "Dollars"
Never sign the check
Sign on the line that says "Pay to the order of"
Always print your signature
Answers
- Spell out the dollars and cents in the short box next to the $ symbol
- Spell out the dollars and cents on the long line that ends in "Dollars"
- Sign on the line that says "Pay to the order of"
- Sign your name in cursive or as you normally do
- Make sure the amount written in words matches the numerical amount in the box
- Ensure the date is correct and current
- Write the name of the person or organization you are paying on the line that says "Pay to the order of"
- Include any optional memo or note on the memo line
- Keep a record of the check in your checkbook register or other tracking system.
Explain how the amount of a down payment affects your monthly mortgage payments.
Answers
Answer:
The more money you put down, the smaller your principal value becomes. Having a smaller principal value will make your monthly payments smaller.
Explanation:
The amount of a down payment you pay will affect your monthly mortgage payment. If you put a larger down payment on your mortgage/loan you will pay less in monthly mortgage payments. If you put a smaller down payment you will end up paying more monthly.
María, age 32, earns $60,000 working in 2022. She has no other income. Her medical expenses for the year total $6,000. During the year, she suffers a casualty loss of $9,500 when her apartment is damaged by flood waters (part of a Federally declared disaster area). María contributes $6,000 to her church and pays $4,000 of state income taxes. On the advice of her friend, Maria is trying to decide whether to contribute $5,000 to a traditional IRA. Complete the table to show the effect the IRA contribution would have on Maria's itemized deductions.
Answers
Her taxable income would be reduced by the $5,000 IRA contribution if she decides to make it, resulting in a lower tax liability.
Itemized Deductions Without IRA Contribution With IRA Contribution
Medical Expenses $6,000 $6,000
Casualty Loss $9,500 $9,500
Charitable Donations $6,000 $6,000
State Income Taxes $4,000 $4,000
Total $25,500 $25,500
Maria's IRA contribution would not affect her itemized deductions because IRA contributions are not deductible on Schedule A.
Instead, they are deducted from her taxable income on the front page of her tax return. Therefore, her taxable income would be reduced by the $5,000 IRA contribution if she decides to make it, resulting in a lower tax liability.
Learn more about Maria's IRA,
https://brainly.com/question/31530618
#SPJ4
true or false: a blockchain network is a distributed ledger system and all transactions must be verified by a central authority.
Answers
False, With a blockchain network, a central authority is not required.
Are centralized governments eliminated by blockchain technology?The need for a central authority to approve a transaction has been eliminated in systems like blockchain. For instance, in order to transfer funds to a friend, one must go via a bank, which also updates the status of each person's bank account.
While implementing blockchain, is the presence of a central authority always essential as a middleman?A blockchain is an extremely secure and reliable network that saves data in a distributed ledger that is independent of any one institution.
Blockchain acts as an authoritative record that is trusted by all users in a network without a centralized authority. Every node can attain the same consensus by exchanging information and establishing a shared, universal, and public ledger that is accepted by all network participants.
Learn more about blockchain network: https://brainly.com/question/30088490
#SPJ1
Drag each option to the correct location.
Match the scenarios to the factors that affect the labor market.
foreign direct investment
outsourcing
immigration
Answers
Each scenario should be matched to the factors that affect the labor market as follows:
Immigration: Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.Foreign direct investment: A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.Outsourcing: A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.What is immigration?Immigration can be defined as the movement of a group of people from one geographical region to another geographical destination such as a city, especially in search of any of the following:
Good governanceSecurityBetter living conditions.WorkJobsSocial amenitiesWhat is a foreign direct investment?A foreign direct investment (FDI) simply refers to a type of investment which is made by an individual or business organization (investor) into an investment market that is located in another country.
In conclusion, an example of foreign direct investment (FDI) is a US supermarket chain that is planning to open a few supermarkets in a country in Europe.
Read more on immigration here: brainly.com/question/9809956
#SPJ1
Answer:
Post Test: Free Market and Businesses
Unit: 2
Economics
Question #12
__________________________________________________________
This is 100% right because I took the test
Go to explanation for picture with answers
l
l
∨
Explanation:
Here's the picture and I hope this helped!
Have a nice day!
b. Thomas is planning to buy a motorbike at a price of £4,999 (assume that this amount does not change in the following 12 months). Thomas has two different choices for raising the money needed to make this purchase: i. Thomas could save £500 at the end of every month to his savings account, which pays a nominal interest rate of 6% payable monthly. Calculate how many months it will take until Thomas has saved enough money to buy the motorbike. [20% of marks for this question]
Answers
It will take Thomas approximately 10.24 months to save enough money to buy the motorbike.
To calculate the number of months, we need to find the future value of Thomas's savings that equals or exceeds the cost of the motorbike. The future value formula for monthly deposits with interest is:
\(FV = P * ((1 + r)^n - 1) / r\)
Where:
FV = Future Value (cost of the motorbike)
P = Monthly deposit (£500)
r = Monthly interest rate (6% / 12 = 0.005)
n = Number of months
By rearranging the formula and solving for n, we get:
\(n = log(1 + (FV * r) / P) / log(1 + r)\)
Substituting the values, we have:
\(n = log(1 + (4999 * 0.005) / 500) / log(1 + 0.005)\)
\(n ≈ 10.24\)
Therefore, it will take approximately 10.24 months for Thomas to save enough money to buy the motorbike.
Learn more about savings here:
https://brainly.com/question/10749354
#SPJ11
Consider the market for new homes. Ceteris paribus, which event will cause consumer surplus to increase, assuming the market sells at the equilibrium prices? Burdened with student loan debt, many millennials delay marriage, children, and buying homes. Tariffs on lumber from Canada increase construction costs. A new tax law decreases the amount that homeowners can deduct on their mortgages. Low mortgage interest rates provide an incentive for potential homeowners to buy now,
Answers
Low mortgage interest rates provide an incentive for potential homeowners to buy now. Assuming this event will increase consumer surplus, the market sells at the equilibrium price. Here option D is the correct answer.
Option A, burdened with student loan debt, many millennials delay marriage, having children, and buying homes, which will likely shift the demand curve to the left, decreasing the equilibrium price and quantity of homes sold in the market. This event will decrease both consumer surplus and producer surplus.
Option B, tariffs on lumber from Canada increase construction costs, will likely shift the supply curve to the left, increasing the equilibrium price and decreasing the number of homes sold in the market. This event will decrease both consumer surplus and producer surplus.
Option C, a new tax law that decreases the amount that homeowners can deduct from their mortgages, may shift the demand curve to the left, decreasing the equilibrium price and quantity of homes sold in the market. This event will decrease both consumer surplus and producer surplus.
Option D, low mortgage interest rates provide an incentive for potential homeowners to buy now, which will likely shift the demand curve to the right, increasing the equilibrium price and quantity of homes sold in the market. This event will increase both consumer surplus and producer surplus, as more buyers can afford to purchase homes at a lower cost of financing.
Complete question:
Consider the market for new homes. Ceteris paribus, which event will cause consumer surplus to increase, assuming the market sells at the equilibrium prices?
A - Burdened with student loan debt, many millennials delay marriage, having children, and buying homes.
B - Tariffs on lumber from Canada increase construction costs.
C - A new tax law decreases the amount that homeowners can deduct from their mortgages.
D - Low mortgage interest rates provide an incentive for potential homeowners to buy now.
To learn more about equilibrium prices
https://brainly.com/question/28527601
#SPJ4
Does compound interest have more of an impact for short-term investments or long-term investments? Why?
Answers
Answer:
Compound interest is important when it comes to investing for a long-term goal because it accumulates interest from prior interest. Longer the term, the more you accumulate interest through compound interest. In the short term, you will not be making enough interest for the compounded interest to be as significant.Explanation:
Compound interest has more of an impact on short-term investments or long-term investments is not a valid statement.
What is the investment?A purchase made with the intention of creating income or capital growth is known as an investment. The value of an item increasing as time passes is referred to as appreciation.
Compound interest is significant when it comes to long-term investing since it builds on earlier interest. The longer time you have, the more curiosity you will accrue due to interest compounding. You won't be earning enough money in a hurry for the phenomenon of compound interest to have much of an impact.
Net worth increases more quickly due to compound interest. Due to the fact that you will receive rewards on both the cash that invest and the returns at the conclusion of every phase of compounding, it causes an amount of money to increase quicker than with simple interest.
Learn more about investment, here:
https://brainly.com/question/31781807
#SPJ2
why is getting a large tax refund or having to pay a large tax bill at the end of the year a sign of poor planning?
Answers
Considering the financial implication, getting a large tax refund or paying a large tax bill at the end of the year is considered a sign of poor planning because you are overpaying taxes to IRS, thereby reducing your take-home paycheck.
Also, it is poor planning when you pay a large tax bill at the end of the year because there would be a risk of owing the IRS the subsequent year, which would affect your paycheck.
Typically, it is recommended that individuals should calculate their taxes very well and aim for zero refund or additional taxes owed.
Hence, in this case, it is concluded that it is poor planning to get a large tax refund or pay a large tax bill at the end of the year.
Learn more about the Tax refund here: https://brainly.com/question/2135349
Carly, an entrepreneur, has opened up a bakery. How might Carly’s work in the business be different in her first year of business than it may be in her tenth year?
In her first year she will likely write off expenses on her taxes; in 10 years her business likely will have grown so she won’t have to do this anymore,
In her first year she will likely hire staff to teach classes; in 10 years she will probably niche down and teach specific extracurriculars herself.
In her first year she will likely operate a franchise model; in 10 years she will probably convert to an LLC structure.
In her first year she will likely fill every role in the bakery herself; in 10 years she may likely have filled those roles with employees
Answers
In her first year, Carly's work will be characterized by starting the company, controlling spending, and investigating potential opportunities. Her work in the tenth year, however, is likely to involve specialization, expansion, and the creation of a more organized and efficient business.
Carly as an entrepreneurIn her first year in business, Carly will work at the bakery, hiring workers to give lessons, using a franchise business model, and performing numerous duties herself. However, by her tenth year, Carly's company will probably have expanded greatly, necessitating adjustments like ceasing to deduct expenses, hiring staff to cover various positions in the bakery, switching to an LLC structure, and ceasing to teach certain extracurriculars herself.
The emphasis switches from starting the firm to specializing, expanding, and creating a more organized organization. In the tenth year, her work will probably involve specialization, expansion, and the creation of a more organized and efficient operation.
Learn more on entrepreneurship here https://brainly.com/question/353543
#SPJ1
Josefa left school at 3.20pm and reached home at 4.00pm .how much time did he take to reach home? A.20 minutes. B.40 minutes. C.30 minutes. D.80 minutes.
Answers
write a short note on meditation
Answers
Answer:
Explanation:Meditation is a practice where an individual uses a technique – such as mindfulness, or focusing the mind on a particular object, thought, or activity – to train attention and awareness, and achieve a mentally clear and emotionally calm and stable state.
To integers between eight is six and seven
A Bank with the following capital levels: common equity of 47,000, Tier 1 of 38,000, Tier 2 of 17,000. If total assets are 850,000 and risk adjusted assets are 650,000, the capital classification of the bank is
Answers
The capital classification of the bank would be "Adequately Capitalized" as its Tier 1 capital ratio.
To determine the capital classification of the bank, we need to compare its capital levels to the risk-adjusted assets. The capital classification is typically based on regulatory requirements and ratios set by the relevant financial authorities.
One common capital adequacy ratio used for classification is the Tier 1 capital ratio.
The Tier 1 capital ratio is calculated by dividing Tier 1 capital (including common equity) by risk-adjusted assets. Let's calculate the Tier 1 capital ratio:
Tier 1 capital ratio = (Tier 1 capital / Risk-adjusted assets) * 100
In this case:
Tier 1 capital = 38,000
Risk-adjusted assets = 650,000
Tier 1 capital ratio = (38,000 / 650,000) * 100
= 5.846%
Now, let's determine the capital classification based on the Tier 1 capital ratio:
Well-Capitalized: Tier 1 capital ratio ≥ 6%
Since the calculated Tier 1 capital ratio is 5.846%, it does not meet the well-capitalized threshold.
Adequately Capitalized: Tier 1 capital ratio ≥ 4%
The calculated Tier 1 capital ratio is above the adequately capitalized threshold, which is 4%.
Undercapitalized: Tier 1 capital ratio < 4%
Since the calculated Tier 1 capital ratio is above 4%, the bank is not classified as undercapitalized.
Therefore, based on the given information, the capital classification of the bank would be "Adequately Capitalized" as its Tier 1 capital ratio exceeds the minimum regulatory requirement of 4%.
To learn more about capital, refer below:
https://brainly.com/question/32408251
#SPJ11
Please I need help!!
Answers
Answer:
A
Explanation: