Answer:
Sid would not be liable if he had waited to buy Tech stock until "three weeks when the game was released".
Explanation:
Sid, by finding out about the development of a new and exciting video game, and then acting on that information by purchasing Tech stock, and also informing his friend Uri to do the same, has committed illegal insider trading.
He used non-public information (that had not yet been made available to the public) to make extra profit for himself and his friend, Uri.
If Sid had waited until the information became public three weeks later, before purchasing Tech stock, then he would not be liable for illegal insider trading.
<span>Average return is obtained by summation of all the stock returns and dividing it by the total number of stocks. In these case there are total of 6 stocks. The total return from these 6 stocks is 40. Therefore, the average return is obtained by dividing 40 with 6. Hence the average return is 6.6%.</span>
Answer:
False
Explanation:
The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.
For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.
Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.
Answer:
d. Treasury Stock for $240,000
Explanation:
The journal entry for re-acquisition of the stock under the cost method is shown below:
Treasury stock A/c Dr $240,000
To Cash A/c $240,000
(Being the stock are reacquired for cash)
The $240,000 amount should be come from
= Number of shares × common stock per share
= 16,000 shares × $15
= $240,000
Since the stock is reacquired so we used the treasury stock account instead of the common stock account