A purchasing department may have difficulty getting a product quickly as it may not be readily available so may have to wait for it and also, there may be a problem getting a product at a reasonable price which means the purchaser would have to search elsewhere for it which could take time.
Cash flows<em> from investing</em> activities contain the following things and include:
- Cash outflows from acquiring land
According to the given question, we are asked to state what the cash flow from investing activities contains based on the list of available choices.
As a result of this, we can see that cash flows which are gotten from investing activities includes the cash that has either been made or spent on a fixed asset like land or properties that are expected to generate profit in the future.
Therefore, the correct answer is Cash outflows from acquiring land
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Answer:
b. mortgage backed securities diversify credit risk for the investor.
Explanation:
An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because <u>mortgage backed securities diversify credit risk for the investor.</u>
In Mortgage Backed Securities, credit risk is diversified as there are many borrowers and investors between whom credit risk diversifies. So that makes investor such as bank prefer the option.
Answer:
Beginning RE 708,900
prior period adjustment <u> 89,470 </u>
adjusted beginning RE 798,370
net income 1,663,000
cash dividends <u> (77,800) </u>
ending RE 2,383,570
Explanation:
The amend of the mistake is done to adjust the beginning retained earnings as it didn't occur in the current accounting cycle.
We have to added as it was posted as an expense something it wasnt Thus, our expense were overstated making a lower net income
then, we proceed normally by adding the net income and decreasing the cash dividends paid to arrive to ending RE
