On 31 May, After Many Months of Planning, Macy Opened

question 75

Multiple Choice

On 31 May, after many months of planning, Macy opened a bike shop by investing $10 000 of his own money. On 31 May he spent 20% of it to pay the rent for three months from 1 June on a store location, and the balance on furnishings and fixtures that had been delivered and set up the night before. A friend had loaned Macy $6000, all of which he used to purchase inventory on 31 May, prior to opening. If Macy prepared a balance sheet as at 31 May, what would be the balances for total assets and total liabilities? Total Assets Total Liabilities

• A) $10 000 $6000
• B) $14 000 $6000
• C) $16 000 $6000
• D) $16 000 $10 000

Interpret the Bureau of Labor Statistics unemployment metrics and their sociopolitical implications.

Evaluate the effects of anticipated versus unanticipated inflation on different economic actors.

Distinguish between economic recession and depression, including their indicators and impact.

Understand the significance and components of the Index of Leading Economic Indicators in predicting business cycles.

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Definitions:

Ex-Dividend

A stock trading term that denotes the timing of dividend payments – if you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment.

Declared Dividend

A portion of a company's earnings announced to be paid to shareholders on a specified date.

Homemade Dividend Policy

A strategy where investors create their own dividend stream by selling a portion of their portfolio of equities.

Dividend Policy

Refers to the approach or guidelines a company follows in deciding the amount and timing of dividend payments to its shareholders.