All categories

1 year ago

A customer has a long margin account with no sma. if the market value of the securities rises, sma will increase by:________

1 answer:

4 0

A customer has a long margin account with no SMA. if the market value of the securities rises, sma will increase by 50% of the increase in market value.

SMA balances are increased in value by cash deposits in brokerage accounts. The SMA also retains interest and dividend payments from long positions and earnings from closing security positions. Clients can use SMA funds to purchase additional securities for their margin accounts.

The SMA of long-margin accounts decreases when the market value decreases. The long account's SMA volume only decreases as it is used and is not affected by market value declines.

Learn more about market value at

brainly.com/question/8084221

#SPJ4

You might be interested in

On November 1, 2021, Sandhill Co. places a new asset into service. The cost of the asset is $84000 with an estimated 10-year lif

Aneli [31]

Answer:

$7,200

Explanation:

According to the scenario, computation of the given data are as follows,

Total cost = $84,000

Salvage value = $12,000

Estimated life = 10 years

So, we can calculate depreciation expense by using following formula,

Depreciation yearly = (Total cost - Salvage value) ÷ Estimated life

= ($84,000 - $12,000) ÷ 10

= $72,000 ÷ 10

= $7,200

7 0

2 years ago

All the following were true of the American economy under Cotton Kingdom EXCEPT a the South reaped all the profits from the cott

Lubov Fominskaja [6]

Answer:

a) the South reaped all the profits from the cotton trade.

Explanation:

Cotton grown in the southern states of the US helped to start the industrial revolution in the United Kingdom and northern states in the US. Even though cotton was not grown in northern states, the factories that processed cotton were located there. The south provided the raw materials and the north provided the final processed goods.

4 0

3 years ago

When a company is using double-entry accounting, what elements of a given ledger must be equal?

VLD [36.1K]

<span>When a company is using double-entry accounting, the elements of a given ledger that must be equal are the debit and the credit. They should reflect the balance of the books. There should be an equal amount in the debit column and in the credit column.</span>

5 0

3 years ago

Kohlman Company began its operations on March 31 of the current year. Projected purchases for the first three months of business

bulgar [2K]

Answer:

c. $146,400 and 206,560.

Explanation:

Monthly Purchases are as follows;

April =$156,800

May= $195,200

June= $217,600

Since Admin expenses are paid every month,

April =$28,800

May = $28,800

June =$28,800

75% of April purchases will be paid in April . Use these to calculate the payments;

Pmts

April = 75%* $156,800 = $117,600

add Admin expenses to find total cash payments;

APRIL = $117,600+ $28,800 = $146,400

In May,20% of April purchases will be paid , 75% of May purchases will also be paid plus admin expenses. Use these to calculate the payments;

May= (20%* $156,800) + (75% * $195,200) + $28,800

MAY = 31360 +146400 +28800 = $206,560

7 0

3 years ago

ABC purchases inventory for $2,000 and incurs shipping costs of $100 for the goods to be delivered. To record this transaction,

Rus_ich [418]

Answer: 1. D) Assets are understated

2. D) Car dealers

Explanation:

1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.

2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.

6 0

3 years ago