Credit to the investment account for $8,000. The consolidated financial statements would therefore be necessary once one firm acquired 50% or more of the voting capital of another company. A parent-subsidiary relationship is created as a result of consolidation, with the parent business assuming ownership of the stock.
Investment account:
When you consider investing, a cash account is likely the type of Investment account that comes to mind. You fund a cash brokerage account by making a deposit, and you then utilise the money to purchase securities.
Cash and assets (stocks, bonds, ETFs, mutual funds, etc.) that you buy and sell to reach your financial objectives are kept in an investment account. Trading accounts for individual investors are managed by dealers and their representatives who are registered investment advisors.
There are four basic asset classes, or investment categories, from which you can select. Each has unique qualities, dangers, and advantages.
Learn more about Investment account here:
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Answer:
False
Explanation:
Cash larceny is the action of stealing company cash already been registered in the books of accounts for a specific accounting period. An employee of the company perpetrates the theft. It involves the employee scheming and executing the taking away of cash recorded in the books without the employer's authority.
Cask larceny happens in the cash register, in the safe, or from cash deposits in transit. In most instances, larceny involves small amounts of money. As the cash is recorded in the books of accounts, larceny can be detected with proper cash reconciliation.
Answer:
$43,500
Explanation:
<em>Net income = sales - expenses </em>
sales = 115,000
expenses (cost) = 71,500
net income = 115,000 - 71,500 = 43,500
<u>We calculate based on the matching principle.</u>
The revenues and expenses should be recognized during the period they occur.
In this case, the sales are for 115,000 regardless of the amount collected during the period or subsequent periods
The expenses for the period are 71,500 Even if a portion remains unpaid at the end of the year, all the expenses for the year should be included in the calculation.
Answer:
true
Explanation:
Before Friendly Bank handed out the loan to Maddie, it had to perfect an interest on the collateral or security of the loan, and it did it by filing a Form UCC-1.
After the loan is repaid, the bank's interest on the security ceases to exist and it must file a UCC termination statement notifying that the collateral is "free and clear".
Answer:
What the investors will do depends on whether the actual return will be higher, lower or the same as the required return (Opportunity cost of capital) .
The Actual return can be calculated using the Holding Period Return which is;
= (Earnings(Dividends) + (Ending Stock Price - Beginning Stock Price))/Beginning Stock Price
= (2 + (52 - 50))/50
= 4/50
= 8%
The Opportunity Cost of Capital can be calculated using CAPM.
= Risk Free Rate + beta(Market Premium)
= 4% + 0.75(7%)
= 9.25%
The Opportunity Cost of Capital is greater than the Actual Return from the stock so the stock is a bad buy.
Investors will not invest.
