Answer:
a. an ownership interest in the corporation.
Explanation:
Stock refers to the stake of the owners of a corporation in the company.
It is sometimes referred to as shares or owner's equity and the owners of stock are called shareholders.
Stock therefore may be described as an ownership interest in the corporation represented as equity in the financial statement.
Option a is right.
Answer:
B) It is reported on the income statement when it pertains to short term investments
Explanation:
Unrealised loss is defined as a reduction in the value of an asset that is held by an investor rather than selling it and realising a loss.
Unrealised loss is also called paper loss. This loss is not realised until the asset is sold.
Unrealised losses are not usually recorded on the income statement unless they intend to be sold in a short time.
When a security is to be sold in the short run it is called a trading security. Trading securities are represented in the income statement as they can increase or reduce income
Answer:
$735,000
Explanation:
The fair values of the assets may be used as a basis for determining the amount to be recorded for each of the assets.
This will be in a proportional manner such that the higher the fair value, the higher the actual cost assigned and vice versa to the asset.
Hence the amount to be recorded for the building
= 840,000 / (840,000 + 840,000 + 1,120,000) * $2,450,000
= $735,000
Answer:
The correct answer is letter "A": group decision making.
Explanation:
Group decision making allows members to share individual experiences among the team. The team usually starts by brainstorming ideas on their tasks so the path they will follow is decided by the majority of them. These types of actions create a sense of justice in the group that later will be translated into commitment with the path taken. Besides, as the team members elected that path by themselves, they are likely to have a deeper understanding of what they are looking for the result of the work to be.
Answer:
Likely to occur during economic growth and increase the trade deficit.
1. Domestic private investment increases
2. Imports increase
When there is a period of economic growth, people generally have more income in the economy. Their consumption will increase and they will demand more foreign goods as well as domestic. This will lead to imports rising.
Likely to occur during economic growth and decrease the trade deficit.
1. Private saving increase.
2. Government borrowing decrease
With people earning more income, they will be able to save more of that income and because they are not buying with those savings, trade deficit drops.
The government would also not have to borrow as much to prop up the economy as the economy is also doing well. This means less need for foreign funds so a lower trade deficit ensues.
Not likely to occur during economic growth.
1. Imports decrease.
2. Government borrowing increases.
When there is economic growth, it is unusual to see that imports are decreasing.
Government would also not have to borrow as much as the economy is doing well on its own and does not need the government to pump money into it.
