Answer:
Cash $60,000 (debit)
Investment Income $60,000 (credit)
Explanation:
It is Important to note that the Acquirer (Horicon Corp) is a Corporate.
The Acquisition of 25% of the common stock of Sheboygan Corp constitute an Asset for Horicon Corp since Economic Benefits are expected to be received from the Investment.
The Receipt of Dividends from these shares will constitute Investment Income and the entry is as follows :
Cash $60,000 (debit)
Investment Income $60,000 (credit)
The Allowance for Doubtful Accounts T-account will have the <u>estimated bad debts from the adjusting entry</u> sales discounts .
Doubtful account
An allowance for doubtful accounts is considered a “contra asset,” because it reduces the amount of an asset, in this case the accounts receivable. The allowance, sometimes called a bad debt reserve, represents management's estimate of the amount of accounts receivable that will not be paid by customers.
Learn more doubtful account here :
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Answer:
a. is weak-form efficient
Explanation:
A weak-form efficient market postulates that the present price of a stock reflects previous all data from past prices.
It suggests that no technical analysis can be of help to the investor.
This implies that fundamental analysis using historical prices and data of a stock can be used to predict stocks that are overpriced or underpriced.
So researching a company's financial statements gives an edge on predicting today's stock price.
Investors can make abnormal profit
Answer:
The interest is $189.78
Explanation:
The computation of the interest on January 20 is shown below:
= Principal × interest rate × number of days ÷ total number of days in a year
= $7,000 × 8% × 122 days ÷ 360 days
= $7,000 × 8% × 0.338
= $189.78
The 122 days are calculated below:
September - 10 days
October - 31 days
November - 30 days
December - 31 days
January - 20 days
Total - 122 days
And we assume the 360 days in a year
Answer:
D. Financial measures are lead indicators of future success.
Explanation:
This is said to be not true regarding financial and non financial measures of performance.
Businesswise, it is often debated whether a commonly perceived good company, as defined by characteristics such as competitive advantage, stable earnings, above-average management, and market leadership, is also a good company in which to invest. While these characteristics of a good company can point toward a good investment, this article will explain how to also evaluate the company's financial characteristics and how to know if a company is a good investment.
