Identify which among the cases describe a net supplier of funds. [C1] The government has collected the taxes for the period and has kept the cash in profit-generating short-term investments. [C2] Individuals who purchased stocks and bonds using cash from their salaries. Only C1 Only C2 Both C1 and C2 Neither C1 nor C2
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Identify which among the cases describe a net supplier of funds. [C1] The government has collected the taxes for the period and has kept the cash in profit-generating short-term investments. [C2] Individuals who purchased stocks and bonds using cash from their salaries.
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- Interest payments on federal government bonds which are owned by the central bank 1, are recorded as central bank profits and then paid to the government as dividends. 2, are recorded as central bank profits and paid out to the private investors who own the central bank. 3, necessitate an increase in taxation so that they can be funded. 4, lead to a decrease in the money suppy.#202 Which of the following is true concerning the statement of cash flows? Question 202 options: a When pension expense exceeds cash funding, the difference is deducted from investing activities on the statement of cash flows. b Under GAAP, the purchase of land by issuing stock will be shown as a cash outflow under investing activities and a cash inflow under financing activities. c The FASB requires companies to classify all income taxes paid as operating cash outflows. d All of these are true concerning the statement of cash flows.Choose the correct answer 1.) Which of the following measures would result in an increase in the money supply in the economy? [S1] Sale of government securities to the public by the central bank. [S2] Increase in the expenditure by the government. [S3] Reduction in tax collection by the government. [S4] Purchase of government securities from the public by the central bank. A.) Statement 3 only. B.) Statements 2 and 4 only C.) Statements 1 and 3 only. D.) Statements 2, 3 and 4. 2.) The currency notes in circulation as well as the proportion of the total money supply held in the form of currency are influenced by which of the following? [S1] The trade volume in the economy [S2] The level of prices in the economy [S3] The development of banks and banking habits of the people A.) Statements 1 and 2 only B.) Statements 2 and 3 only C.) Statements 1, 2 and 3 D.) Statement 3 only 3.) What is the most likely effect of financial innovation and increasing real GDP, respectively, on the demand…
- part-a: What is the difference between direct finance and indirect finance? part-b: What are the main institutions in the direct finance system of an economy? What are the main institutions that constitute the indirect finance system in a country? part-c: What are the sources of national saving in a closed economy? Does a government increasing taxes and / or social security transfers impact the amount of national savings in a closed economy? Why or why not? (Hint: Consider the savings identity for this question.) part-d: Where does the demand for loanable funds come from in a closed economy? How does a government adopting a policy of taxing investment from the private sector impact the demand for loanable funds? What happens to the equilibrium interest rate following this policy? Illustrate using the supply and demand in the market for loanable funds.answers are given. Only need solutions What is the net cash provided by operating activities? a) P90,000b) P108,000c) P153,000-answerd) P75,000 51. Using the data in no. 50, what is the net cash provided (used) by investingactivities?a) (P108,000)-answerb) P90,000c) P18,000d) (P132,000) 52.Using the data in no. 50, what is the net cash provided (used) by financing activities?a) (P162,000)-answerb) P72,000c) (P90,000)d) P18,00027.Which of the following statements are true?Statement I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity. Statement II. Financial institutions manage their liquidity by participating in money markets. They may issue money market securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.Statement III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.Statement IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The…
- Statement I: Users of the funds from finanical institutions and markets have the obligation to return the same without interest. Statement II: Financial instituions and markets are also concerned with creating financial asstes. Statement I is true. Statements I and II are false. Statement II is true. Statements I and II are true.Indicate if the following transactions increase or decrease cash and classify the transactions as Operating, Investing or Financing Activities Enter I For increase and D for decrease. Enter O for Operating, I for Investing, and F for Financing. 1. Pay taxes D O 2. Collect cash from customers I O 3. Issue common stock F 4. Take out a loan from a bank 5. Purchase stock in another company I 6. Sell government debt security 7. Buy a patent 8. Retire a bonds payable 9. Pay dividends 10. Pay insurance 11. Pay interest on a loan 12. Pay principal on a loan 13. Pay salaries 14. Repurchase treasury stock 15. Sell a copyright to another firm 16. Pay suppliers for inventory 17. Dividend payments received from stock investment. 18. Interest payments received from investment in government debt securities.How does a cash flow from financing differ from the cash flow from investments? A : Cash flows from financing come from cash received or paid to creditors whereas cash flows from investing are from buying and selling assets. B : Cash flows come financing from banks and investment firms whereas cash flows from investing cash flows come from other businesses. C : Cash flows from financing come from private companies whereas cash flows from investing come from government sources. D : Cash flows from financing come from public sources whereas t cash flows from investing come from private sources.
- Ownership of debt instruments of the government and other companies that can be readily converted to cash are best reported as: Select one: a. long-term investments. b. intangibles c. marketable securities. d. Cash.For each of the following transactions, indicate whether operating (O), investing (I), or financingactivities (F) are affected and whether the effect is a cash inflow ( 1 ) or outflow ( 2 ), or (NE) if thetransaction has no effect on cash.TIP: Think about the journal entry recorded for the transaction. The transaction affects net cash flowsif and only if the account Cash is affected.1. Purchased new equipment with cash.2. Recorded and paid income taxes to the federal government.3. Issued shares of stock for cash.4. Prepaid rent for the following period.5. Paid cash to purchase new equipment.Indicate which of the following are objectives of financial accounting. (Yes/No) Objectives 1. ___________ 2. ___________ 3. ___________ 4. ___________ 5. ___________ 6. ___________ Provide information that is useful to investors and creditors. Guarantee that businesses will not go bankrupt. Provide information about resources and claims to resources. Prevent competitors from offering lower-priced products. Provide information to help users in predicting future cash flows. Maximize tax revenue to the federal government.