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3 years ago

Businesses hold short-term securities for which of the following reasons

Business

1 answer:

Burka [1]3 years ago

5 0

Answer: Option D

Explanation: Short term investments can be defined as the liquid investments that are expected to be sold or be converted into cash within a particular time period, generally a year or operating cycle of the company. Primary examples are commercial paper and US treasury bills.

These are generally used to have cash availability at short term notice in the entity or for some future project funding investment. For bad debt buffering specific provisions are made.

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Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances

denis23 [38]

Answer:

Explanation:

The adjusting entries are shown below:

1. Supplies Expense A/c Dr $3,000 ($2,000 + $4,500 - $3,500)

To Supplies A/c $3,000

(Being supplies purchased)

2. Insurance Expense A/c Dr $2,000

To Prepaid Insurance A/c $2,000

(Being prepaid insurance adjusted)

3. Salary expense A/c Dr $16,000

To salary payable A/c $16,000

(Being salary adjusted)

4. Unearned revenue A/c Dr $1,500

To Service revenue A/c $1,500

(Being unearned revenue adjusted)

7 0

3 years ago

Mystic Laboratories reported total assets of $11,200,000 and noncurrent assets of $1,480,000. The company also reported a curren

Anastasy [175]

Answer:

$6,480,000

Explanation:

The computation of the amount of the current liabilities is shown below:

Total assets of $11,200,000

Less: Noncurrent assets $1,480,000

Current Assets = $9,720,000

Now as we know that

Current ratio = Current Assets ÷ Current Liabilities

Current Liabilites is

= $9,720,000 ÷ 1.5

= $6,480,000

hence, the current liabilities is $6,480,000

3 0

3 years ago

Marcel supervises a group of paralegals serving the firm's lawyers. He gets along well with his employees, and he has created de

svet-max [94.6K]

Answer:

Task-oriented

Explanation:

Task-oriented leaders focus on getting necessary tasks done to accomplish set objectives. These leaders are concerned with finding step-by-step solutions needed to meet set goals. The leaders will often define the roles required, put structures in place, organise necessary resources, and monitor progress towards accomplishing tasks within the team.

8 0

3 years ago

At December 31, 2020, Pharoah Company has outstanding three long-term debt issues. The first is a $2,370,000 note payable which

Snezhnost [94]

Answer:

The first is a $2,370,000 note payable which matures June 30, 2023.

The second is a $5,580,000 bond issue which matures September 30, 2024.

annual sinking fund payments of $2,570,000 in each of the years 2022 through 2026.

Year Amount of long term debt Working

2021 $0

2022 $2,570,000

2023 $4,940,000 = $2,570,000 + $2,370,000

2024 $8,150,000 = $,2,570,000 + $5,580,000

2025 $2,570,000

2026 $2,570,000

Long term debt is debt that must be paid in a period of time longer than one year. Debts that are due in less than one year are classified as current debts or liabilities. That is why there is no long term debt for 2021 (current year).

7 0

3 years ago

Newdex has net income of $3,000,000 (INCLUDING the effect of expected out-of-pocket costs) and 1,000,000 shares outstanding. It

kkurt [141]

Answer:

$416,667

Explanation:

Current EPS = $3,000,000 / 1,000,000

Current EPS = $3

Net Proceeds per share = $40 * 90%

Net Proceeds per share = $36

New Number of Shares = $5,000,000 / $36

New Number of Shares = 138888.88

Total Number of Shares Outstanding after the new issue = 1138888.88 shares

Diluted EPS = $3,000,000 / 1138888.88

Diluted EPS = $2.634

Amount of Dilution in EPS = $3 - $2.634

Amount of Dilution in EPS = $0.3658

Net Income must increase by 1138888.88 * $0.3658 = $416,667. So, Newdex's after-tax income must increase to $416,667 to prevent dilution of earnings per share.

6 0

3 years ago