Answer:
(B) Increase both assets and equity by $180
Explanation:
The transaction analysis model tells us that:
Assets = Liabilities + Owner's Equity
Owner's equity = Contributed Capital + Retained Earnings
Retained Earnings = Net Income − Dividends
and
Net Income = Income − Expenses
The expanded accounting equation is obtain if all substitutions are made:
Asset = Liabilities + Contributed Capital + Income – Expenses − Dividends
In the Global Cleaning Service`s case:
Assets are increased either because the service is collected or is an account receivable. As the service provided is a revenue (income) is part of the Owner's Equity that also increase. Both, Asset and Owner's Equity, increase in 180.
1. This is the hardest question to answer of all of them. It depends on who you read. The New York Times has a different policy than the Huffington Post. I'll say it is intended to be true.
2. True. That's why they are called specialty shops.
3. Sometimes. There are other possibilities. I think you are intended to say true.
4. True. They do.
5. False. It's the other way around.
Answer:
(a) Dollar price of the bond = Par value × Current price percentage
= $1,000 × 106.124%
= $1,061.24
(b) Bond's current yield:
Annual interest paid in dollars = Bond par value × Rate of interest
= $1,000 × 7.8%
= $78
= 0.0734
= 7.34%
(c) Issue price of bond is $1,000 and current maturity price is $1,061.24. Thus, bond price is greater than the par value.
(d) Current yield is the return on bond at current price. Yield to maturity is 6.588 % and current yield is 7.34%. Since the current price is more than the par value, therefore, YTM is lower than the current yield.
Answer: Inform Sergio so he can sue the seller.
Explanation: when a fraudulent seller causes Hilda not to be given commission she earned from her last transaction, the best course of action is to let her broker, Sergio know of the fraudulent seller so he can be sued to court.
Sellers are required by law to make accurate disclosures regarding properties they sell. Failing that, they can be sued for fraud, this helps entitle the broker bringing a suit in civil law against the fraudulent seller to attorney’s fees and punitive damages.
Answer:
True
Explanation:
If there is a more number of compounding periods within a year so it would result into the higher price of future value for lump sum investment in year 0 but the case would be adverse with the present value i.e there is less amount in the present value with regard to lumpsum amount i.e to be recieved in the future date
Hence, the given statement is true
