the price specified in an option contract at which the holder can buy or sell the underlying asset is called the

Answers

Answer 1

The price specified in an option contract at which the holder can buy or sell the underlying asset is called the "strike price" or "exercise price".

The striking price of a call option is the cost at which the option holder can purchase the underlying asset. The option holder may exercise the option and purchase the underlying asset at the strike price if the price of the underlying asset is higher at the option's expiration date.

The holder of the option may decide not to exercise it & allow it to expire worthless if the price is below the strike price. It is essential to remember that the strike price is established during option creation and is fixed for the duration of the option.

Therefore, when engaging into an option contract, it is crucial for option holders to carefully analyse the strike price since it might have a considerable influence on the potential profitability of the option.

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Answer 2

The price specified in an option contract at which the holder can buy or sell the underlying asset is called the "strike price" or "exercise price". The striking price of a call option .

the cost at which the option holder can purchase the underlying asset. The option holder may exercise the option and purchase the underlying asset at the strike price if the price of the underlying asset is higher at the option's expiration date. The holder of the option may decide not to exercise it & allow it to expire worthless if the price is below the strike price. It is essential to remember that the strike price is established during option creation and is fixed for the duration of the option. Therefore, when engaging into an option contract, it is crucial for option holders to carefully analyse the strike price since it might have a considerable influence on the potential profitability of the option.

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Related Questions

i am doing in interview for business opportunities around my area what questions should i ask

Answers

Answer: General questionsWhen did you start your business?Why did you decide to become a business owner?What was your mission at the start of your company?How many employees does your company have?What services or products do you offer?How do you advertise your business?

Explanation: i think it’s right

Typical queries include: When did your business begin? Why did you choose to start a business? What was the purpose of your business when it first began? How many people work for your company? What products or services do you provide? How do you promote your company?

What is an interview?

An interview is a planned dialogue in which one party asks questions and the other replies. The term "interview" in everyday speech describes a private discussion between an interviewer and an interviewee.

The interviewee replies to queries by the interviewer by typically supplying information. The use of or distribution of that information to other audiences is entirely up to you.

This characteristic is evident in many different sorts of interviews; even when no one else is present during a witness interview or a job interview, the answers will be made available to others later on in the hiring or investigating process. Information can be exchanged in both directions during an interview.

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How is Apple employing the concept of marketing in the creation of the IPhone?

Answers

Answer:

Explanation:

detailed understanding of Apple's customers allowed the company to analyze consumer behavior more effectively. Apple uses this insight to tailor products and brand messages that resonate with the target audience making products that work better and are simple to use.M

The company's ability to study consumer behavior more efficiently was made possible by a thorough understanding of Apple's customers. Apple makes use of this knowledge to create more user-friendly, better-functioning products and brand messaging that appeal to the target market.

What do you mean by Marketing?

The marketing strategy is a collection of tactics that businesses use to examine the needs of their clients and put into practice solutions to meet those demands, increasing sales, maximizing profits, and outpacing the competition.

In the modern era, businesses all around the world use the marketing notion extensively, although this was not always the case.

Therefore, the company's ability to study consumer behavior more efficiently was made possible by a thorough understanding of Apple's customers. Apple makes use of this knowledge to create more user-friendly, better-functioning products and brand messaging that appeal to the target market.

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A US based company is attempting to merge with a French National conglomerate. With IFRS and GAAP being so different, what would be some of the challenges the two sides may face with the merger from an accounting standpoint?

Answers

The merger between a US-based company and a French National conglomerate can pose several challenges from an accounting standpoint due to the differences between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). Some of the challenges they may face include:

Accounting Principles: IFRS and GAAP have different underlying principles and concepts. IFRS is principles-based, emphasizing substance over form, while GAAP is rules-based, providing specific guidelines for various transactions. The differences in accounting principles can lead to variations in the recognition, measurement, and presentation of financial information.

Financial Statement Presentation: IFRS and GAAP have different requirements for financial statement presentation. The formats and classifications of items on the balance sheet, income statement, and cash flow statement may vary between the two sets of standards. This can make the comparison and consolidation of financial statements challenging.

Revenue Recognition: IFRS and GAAP have differing guidance on revenue recognition, particularly in areas such as the timing of revenue recognition, multiple-element arrangements, and percentage-of-completion method for long-term contracts. Aligning the revenue recognition policies of the merging entities can be a complex task.

Valuation of Assets and Liabilities: IFRS and GAAP may have different rules for the valuation of assets and liabilities, such as inventory, property, plant, and equipment, intangible assets, and financial instruments. Differences in valuation methodologies can impact the reported values of assets and liabilities, which can have implications for financial ratios, financial performance, and tax implications.

Business Combinations and Goodwill: IFRS and GAAP have different requirements for accounting for business combinations and the subsequent treatment of goodwill. For example, IFRS allows for the option of measuring goodwill at cost or using the impairment model, while GAAP follows a more strict impairment-only model. This can result in differences in the recognition and measurement of goodwill and the related impact on financial statements.

Disclosures: IFRS and GAAP have varying disclosure requirements, with differences in the level of detail and specific disclosures mandated for certain transactions and events. Harmonizing the disclosure requirements can be a complex task to ensure compliance with both sets of standards.

These are just a few examples of the challenges that may arise during the merger process from an accounting standpoint. It is crucial for the merging entities to have a thorough understanding of the differences between IFRS and GAAP and work closely with accounting professionals and advisors to address these challenges effectively and ensure accurate financial reporting and compliance with relevant regulations.

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Why might you be at a disadvantage if you choose not to keep your money in a bank?.

Answers

If you have to much in the back then some of those funds in your bank might fail.

Question 4 of 10
Buying a new computer for which of these reasons is most likely a sound
financial decision?
A. You liked the ad for it on TV.
B. You need it to do your homework.
C. Your friend has one.
D. You were persuaded by a salesperson.
SUBMIT

Answers

Answer:

B. You need it to do your homework.

Explanation:

A computer is a useful resource in the life of a modern-day student. It gives students access to a lot of educational content available in digital content and through the internet. A computer makes student research work, report writing, and submission a lot easier.

A student investing in a computer is a sound financial decision. The computer will be a useful asset in the life of the student.

how long does the nissan leaf owner have to use the $250 charging credit?

Answers

To determine how long a Nissan Leaf owner has to use the $250 charging credit, check the terms and conditions provided by Nissan and monitor your credit usage.

A Nissan Leaf owner has to use the $250 charging credit within a specific time period.

Step 1: Understand the credit
The $250 charging credit is offered by Nissan to new Leaf owners for them to use at participating charging stations.

Step 2: Check the terms and conditions
The duration to use the credit may vary depending on the offer and purchase date.

It is important to check the terms and conditions provided by Nissan for specific details.

Step 3: Monitor usage
Keep track of your charging credit usage to ensure you take full advantage of the offer before it expires.

In summary, to determine how long a Nissan Leaf owner has to use the $250 charging credit, check the terms and conditions provided by Nissan and monitor your credit usage.

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Objective and subjective product criteria are developed during the ________ stage of the purchase decision process so that the decision can be made in the next stage.

Answers

Objective and subjective product criteria are developed during the alternative evaluation stage of purchase decision.

What is alternative evaluation?

Alternative evaluation is the the third stage in the consumer buying decision. It refers to the stage in the buying decision process in which the buyer uses information gathered to make a final choice between the products in the evoked set.

The alternatives should reflect  different approaches to the problem or different priorities across objectives, and should present decision makers with real options and choices

Hence, objective and subjective product criteria are developed during the alternative evaluation stage of purchase decision.

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What does the prefix re mean in the word reunited?
a.
both
c.
always
b.
again
d.
none of the above

Answers

Answer:

b. Again

Explanation:

Answer:

b.

again

Explanation:

Both reunion and reunite come from the Latin root unus, or "one," and the "again" prefix re-, so reunite means "make as one again."

6
A company that is located in the U.S. and sells its product to customers in Mexico is participating in what?
A. Demographics
B. News media
C. The global marketplace
D. Web marketing

Answers

Answer:

c

Explanation:

the global marketplace

Answer:

C

Explanation:

got it right on Edge

How a group is arranged in regards to leadership, governance, rules for operation and decision making is called _______ structure.

Answers

An Organizational structure.

Discuss for what reasons different business areas (accounting, finance, management and marketing) might use statistics.

Answers

Statistics can provide valuable insights and help businesses make informed decisions in a range of areas, including finance, accounting, management, and marketing.

Different business areas such as accounting, finance, management, and marketing might use statistics for various reasons. In accounting, statistics can be used to analyze financial data, evaluate financial performance, and identify trends. For instance, accountants can use statistical tools to calculate financial ratios, such as return on investment (ROI), profit margins, and liquidity ratios, to assess the financial health of a business.

In finance, statistics can be used to evaluate investments, assess risks, and develop financial models. For example, financial analysts can use statistical tools to calculate the expected returns and volatility of different investment options, and create financial models that simulate various scenarios to help investors make informed decisions.

In management, statistics can be used to monitor and improve business operations, measure performance, and identify opportunities for growth. For instance, managers can use statistical tools to track sales data, analyze customer feedback, and measure employee performance, and make data-driven decisions to optimize business operations.

In marketing, statistics can be used to analyze customer behavior, target audiences, and measure campaign effectiveness. For example, marketers can use statistical tools to conduct market research, segment customers, and track conversion rates, and use this information to develop effective marketing strategies that reach and engage target audiences.

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mental ability tests produceDespite being easy to use and one of the most valid selection methods for all jobs, mental ability tests produce that are three to five times larger than other methods, such as structured interviews, that are also valid predictors of job performance

Answers

Answer:

Despite being easy to use and one of the most valid selection methods for all jobs, mental ability tests produce racial differences three to five times larger than other methods, such as structured interviews, that are also valid predictors of job performance.

Explanation:

The way out of the racial differences produced by mental ability tests is for HR personnel to combine the use of mental ability tests with other assessment methods in order to lessen the racial bias results.  By so doing, the job applicants will still be subjected to some form of cognitive or mental ability tests, which is then ameliorated with structured interviews, whose results will be used to compare one candidate's performance against other candidates' performances.

Which factor plays the biggest role in motivating economic decisions in a
market economy?
O A. Corruption in the leadership of powerful groups
O B. Commitment to maintaining a traditional lifestyle
O C. Competition between different businesses
D. Cooperation between governments and citizens

Answers

The answer is D I’m pretty sure

Cooperation between governments and citizens: plays the biggest role in motivating economic decisions in a market economy. Thus, option D is the correct option.

What Is a Market Economy?

A market economy is a kind of capitalism in which a nation's companies and residents interact to determine economic policy and the cost of products and services. Although there may be some central planning or government interference, this phrase often denotes a more generally market-oriented economy.

The majority of economic decisions in a market economy are made through voluntary transactions that follow the rules of supply and demand. In a market economy, entrepreneurs are free to pursue profit by producing outputs that are worth more than the inputs they use, or, if they choose not to, to fail and close their doors. The forces of supply and demand are used in market economies to set the right prices and quantities for the majority of products and services.

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1. Margot works as a sales associate at a children’s clothing store. What education might Margot have needed to attain her position?

A.
high school diploma

B.
associate degree in childhood education

C.
bachelor’s degree in logistics

D.
master’s degree in business

Answers

Answer:

A. High school diploma

Explanation:

Answer:

A

Explanation:

Mary is writing a letter of transmittal to accompany a report to her client. The transmittal letter should announce the topic of the report, tell how it was authorized, briefly describe the project, and __________.
a. identify the writer of the report
b. list the sections of the report and any appendixes
c. highlight the report's findings, conclusions, and recommendations
d. market additional services or products

Answers

Answer:

No ablo taka taka mi querido amigo ehh ni si quiera lo voy a intentar

a. a stock has an annual return of 11 percent and a standard deviation of 44 percent. what is the smallest expected gain over the next year with a probability of 1 percent?

Answers

The smallest expected gain over the next year with a probability of 1 percent is 113.3%.

How does standard deviation affect returns?It highlights the extent to which data can deviate from the investment's historical mean return. The returns will fluctuate more when the Standard Deviation is larger. For instance, the return will vary between 10 and 20% for a fund with an SD of 5% and an average rate of return of 15%.The monthly standard deviations are then all converted to annual values. is computed by adding up the portfolio's monthly returns and dividing the total by the number of months. It is also known as the arithmetic mean. The monthly standard deviation is multiplied by the square root of 12 in Morningstar's annualization process.

a stock has an annual return of 11 percent

a standard deviation of 44 percent

Prob(R ≥ 0.11 + 2.326(0.44)) = 1%

Prob(R ≥ 1.133) = 1% = 113.3%

While this is a large return, it is plausible, and even possible. Since it is not possible for a stock to lose more than 100% but it is possible for a stock to gain more than 100%, stock returns are not truly normal.

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use an optimization model to determine the best course of action for your real estate company, using the following assumptions: you wish to maximize the net present value of profit over the next eight quarters. assume 6% irr, compounding quarterly. (so 1.5% per quarter) in each neighborhood in which they open an office, they will achieve a baseline of 5.5% market penetration, and earn a 5% commission on sales. for every .1% the commission you charge decreases, your market penetration will increase by .15%, (down to a minimum penetration of 4% or a maximum of 6%) you must pay rent and utilities in each office you open each month. determine the average cost per gross square foot of commercial real estate in your neighborhood for the last year (in nyc historical). [when determining this value, you should exclude properties where gross square feet or sale price is unknown.] each month you will pay 1.5% of this for rent and utilities for each square foot of office space you rent. you must rent at least 250 square feet of office space, plus 125 for each employee you hire. you may hire up to 3 employees. each employee you hire costs a yearly salary $65,000 including benefits, and increases your market penetration by .5%. your monthly operating budget is $15,000. you may add other assumption you deem realistic so long you provide the explanation in your report.

Answers

The best course of action for the real estate company is to open offices in neighborhoods with higher market penetration and lower commercial real estate costs, hire up to 3 employees, and set commission rates to achieve maximum net present value of profit over the next 8 quarters while staying within the monthly operating budget of $15,000.

To optimize net present value of profit, the real estate company should analyze market penetration, commission rates, and real estate costs in each neighborhood to determine which locations will yield the highest profit.

The company should also hire up to 3 employees to increase market penetration while staying within the operating budget. The commission rate should be set to maximize profit while also taking into account the relationship between commission rates and market penetration.

The company should aim to rent office space in neighborhoods with low commercial real estate costs and high market penetration, and adjust the office space size to meet the minimum requirements while minimizing costs.

Finally, the company should regularly monitor and adjust its strategy to adapt to changing market conditions.

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1. Mallory owns an auto repair shop. She has $12,000 in cash, $8,000 in
inventory, a $4,000 credit card balance, and $3,500 in long-term del
What is Mallory's equity?
a.

Answers

Mallory's equity, given that she owns auto repair shop and the amounts in her books, are $ 12, 500

How to find the equity ?

As per the Accounting Equation, equity is the portion of assets that is not supplied by liabilities.

This means that Mallory's equity is:

= Cash + Inventory - Credit card balance - Long term debt

= 12, 000 + 8, 000 - 4, 000 - 3, 500

= $ 12, 500

In conclusion, Mallory's equity is $ 12, 500.

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Which one is closely related to a check? A. Debit card
B. Credit card
C. Direct deposit
D. PIN​

Answers

Answer:

C. Direct deposit

5. hedging with futures (lo4, cfa2) an american electronics firm imports its completed circuit boards from japan. the company signed a contract today to pay for the boards in japanese yen upon delivery in four months; the price per board in yen was fixed in the contract. should the importer buy or sell japanese yen futures contracts?

Answers

The importer can use futures contracts to hedge against the potential currency risk associated with the transaction. Since the payment is due in four months, the importer can sell Japanese yen futures contracts to lock in the current exchange rate and protect against potential appreciation of the yen.

By doing so, the importer can ensure that they will be able to pay for the circuit boards at the agreed upon price without worrying about fluctuations in the exchange rate.

However, if the yen were to depreciate, the importer would not be able to take advantage of the lower exchange rate.

Overall, the decision to hedge with futures depends on the importer's risk tolerance and expectations for future currency movements.

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Assume Simple Company had credit sales of $240,000 and cost of goods sold of $140,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $150.
Required:
What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

Answers

The company would record $2,400 as Bad Debt Expense as an end-of-period adjustment.

To calculate the Bad Debt Expense, Simple Company uses the percentage of credit sales method. They estimate that 1 percent of credit sales would result in uncollectible accounts.

Calculate the percentage of credit sales that would result in uncollectible accounts:

Credit Sales = $240,000

Uncollectible Percentage = 1%

Uncollectible Accounts = $240,000 * 1% = $2,400

Record the Bad Debt Expense as an end-of-period adjustment:

Before the adjustment, the Allowance for Doubtful Accounts has a credit balance of $150. To bring the allowance to the desired amount, the company needs to increase it by the amount of uncollectible accounts. Since the credit balance increases with a debit entry, the Bad Debt Expense would be recorded as $2,400.

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what is the factored form of x^2-11x+24=0

Answers

Answer:

(x - 8)(x - 3) = 0

Explanation:

Use the AC method, multiplying the a by c, or the coefficient of x (which is 1) and the last term, 24.

1 x 24 = 24

Now list factors of 24:

1 x 24

-1 x -24
2 x 12
-2 x -12
3 x 8
-3 x -8
4 x 6
-4 x -6

Which of these factor's sums would equal -11 (the middle term)?

-3 + (-8) = -11

So replace -11x with -3 and -8:
x^2 - 3x - 8x + 24 = 0

Now factor by separating into two groups:
x^2 -3x and -8x + 24

GCF between x^2 and -3x is x. So factor x out.
x(x - 3)

GCF between -8x and 24 is 8. So factor 8 out.
-8(x - 3)

Now we have x(x - 3) - 8(x - 3)

(x - 8)(x - 3)

A ({bond} or {stock}) will pay income based on an interest rate, while a ({bond) or (stock)} may give dividends to investors. Both interest income and dividends contribute to the ({cost) or (return) or (risk)} on an investment.

Answers

Answer:

A bond will pay income based on an interest rate, while a stock may give dividends to investors. Both interest income and dividends contribute to the return on an investment.

Explanation:

A bond is a long-term debt tool used by governments and corporations to raise funds. To investors, bonds offer long-term investment opportunities that pay interest based on the prevailing market rates.

A stock is the smallest unit of a company. Owning stock is owning a small portion of the company. Stockholders are entitled to share in the profits of a company; that's why they receive dividends.

An investment is a commercial undertaking that provides the investor with a financial gain. The financial gain or profits may be dividends from shares or interests from deposits.

Answer:

A bond will pay income based on an interest rate, while a stock may give dividends to investors. Both interest income and dividends contribute to the return on an investment.

Explanation:

it just make sense to me

which employee is likely to be the best employee? multiple choice high in agreeableness high in consientiousness high in neuroticism high in extraversion high in openness

Answers

The top workers are always looking for new methods to develop themselves and give more to the business. They pay attention, consider criticism seriously, and are receptive to new ideas.

They don't hesitate to ask inquiries or look for assistance when necessary. Successful workers aren't scared to voice their opinions or offer suggestions. They also know how to control their enthusiasm so that it doesn't lead to tearing down existing procedures or concepts.

But rather to discover ways to work together to be more productive and enhance the results of existing procedures.  Someone who can be trusted by management to do a good job is a good employee.

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Adalyn wants to find a job in Education and Training. She has excellent analytical thinking and leadership skills, but she does not want to work directly with students. Which career would be the best option for her? A. curriculum developer B. high school teacher C. school counselor D. speech-language pathologist

Answers

Answer:

A. curriculum developer

Explanation:

A curriculum developer refers to an individual who is typically an educational professional who is saddled with the responsibility of creating or developing topics, instructional materials and teaching techniques (methods) that are to be used by classroom teachers to instruct, lecture and teach students. Thus, curriculum developers do not work directly with students but are part of the chain responsible for ensuring that students get the best form of knowledge and learning experience in schools.

Additionally, curriculum developers are to ensure that the curriculum used for teaching students are totally or completely in compliance with sets of standards established by the school and regulatory agencies in the state.

In this scenario, Adalyn wants to find a job in Education and Training. She has excellent analytical thinking and leadership skills, but she does not want to work directly with students.

Hence, the career which would be the best option for her is to be a curriculum developer.

Answer:

A. curriculum developer

Explanation:

If international relationships are strained, one country may punish another country by imposing limitations on trading between them. What is this restriction called?

Trade sanctions

Trade embargo

Economic sanctions

Product sanctions

Answers

Answer:

Trade sanctions

Explanation:

Trade embargo means trade ban

Economic sanctions are overall sanctions. Not just for trading.

Product sanctions are for productions like oil.

the US has had sanctions on Iran for oil.

Someone who diversifies investments is more likely to

Answers

Answer:

offset their losses with gains.

Explanation:

Answer:

offset their losses with gains.

Explanation:

seasonal inventory allows a firm to maintain a smooth production flow throughout the year. group of answer choices true false

Answers

The statement, "Seasonal inventory allows a firm to maintain a smooth production flow throughout the year" is True.

What is seasonal inventory?

Seasonal inventory can be defined as the practice of storing items, such as consumer products, materials, or commodities when they are in high demand and then selling them off when demand decreases.

It is an inventory management technique used by businesses to ensure they have enough stock to meet demand during peak periods and avoid overstocking during low periods.

What is production flow?

Production flow is the process of taking a raw material and transforming it into a final product. It involves a series of sequential steps and activities that lead to the manufacture of a finished product. It includes all the stages of production, from the procurement of raw materials to the delivery of finished goods to the customer.

Seasonal inventory allows a business to keep its production flow consistent throughout the year by ensuring that enough raw materials are available to meet demand during peak periods. It also prevents overstocking during low periods, ensuring that the business maintains its profitability.

As a result, seasonal inventory management can help companies maintain a more efficient and cost-effective production process.

Hence, The statement, "Seasonal inventory allows a firm to maintain a smooth production flow throughout the year" is True.

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True/False

2. Federal income tax and social security are mandatory deductions---medical insurance and 401k contributions
are optional deductions from your paycheck.

Answers

The given statement "Federal income tax and social security are mandatory deductions---medical insurance and 401k contributions are optional deductions from your paycheck" is True because that depends on your choices and participation in specific benefit programs offered by your employer.

Federal income tax and social security are indeed mandatory deductions from your paycheck. These deductions are required by law, and the amounts are determined based on your income and other factors. Federal income tax is collected by the government to fund various public services and programs, while social security contributions go towards providing retirement, disability, and survivor benefits.

On the other hand, medical insurance and 401k contributions are optional deductions from your paycheck. Medical insurance premiums are typically deducted if you choose to participate in an employer-sponsored health insurance plan. These deductions are optional because you may have the option to opt out of the plan or choose a different coverage option.

Similarly, 401k contributions are voluntary deductions that you can choose to make from your paycheck. A 401k is a retirement savings plan offered by employers, and you have the option to contribute a portion of your salary toward the plan. These contributions are often tax-deferred, meaning they are deducted from your pre-tax income, providing potential tax advantages.

While federal income tax and social security are mandatory deductions, medical insurance, and 401k contributions are optional deductions that depend on your choices and participation in specific benefit programs offered by your employer. It's important to review your paycheck and understand the deductions being made to ensure accuracy and make informed decisions regarding optional deductions.

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Libby is a trainee accountant and has prepared a balance sheet for the accounting year. She valued all the assets of the company at their current
market price. Which accounting principle did she fail to comply with?

А. historical cost
B. accruals
C. matching
D. business entity
E. realization

Answers

The correct answer is A.

Historical cost

Hope this helps!
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