Answer:
D) is not acceptable because such a guarantee would cause a conflict of interest pertaining to the IA's fiduciary duty to each client
Explanation:
The members of the North American Securities Administrators Association (NASAA) must follow their Model Rule which prohibits investment adviser firms from guaranteeing investment results, in other words they cannot guarantee a minimum profit.
In this case the employee suggested that if their clients didn't earn a minimum 12% profit, then they would refund any fees collected. But the IA firm is not allowed to guarantee the 12% value increase or profit.
Answer:
Total cost= $60,800
Explanation:
Giving the following information:
For 4,000 units:
Unitary variable cost= $8
Unitary fixed cost= $5
<u>First, we need to calculate the total fixed cost:</u>
Total fixed cost= 5*4,000= $20,000
<u>Now, we can determine the total cost for 5,100 units:</u>
Total cost= 5,100*8 + 20,000
Total cost= $60,800
The correct answer is $380 per unit.
The lower-of-cost-or market rule requires that you report the lower value of either the purchase price or current market price of items in inventory. In this case the current market price is lower, so it should be used when calculating the value of inventory.
Answer:
$68,000
Explanation:
The long-term note payable is a debt that is formally established through a written agreement. An example of long-term note payable is a bank loan.
When the principal and the interests of a long-term note are paid, they represent Cash outflows from the business and are recorded in the Cashflow Statement. However, their treatments are different. Another way to put it is that they bring a reduction in the cash of the organisation.
The $68,000 principal amount paid is an outflow from the company that is recorded in the financing activity section of the Cash Flow Statement
The Interest of $5,440 is also an outflow from the business but it is reported in the operating activity section of the Cash Flow Statement. The reason for its report is that it is actually reported in the Organisation's Statement of Income as an expense for the year. It, therefore, qualifies as an operating activity expense or outflow.
The <u>NOT Photo parallel lineup</u> is the most commonly used type of lineup in police departments. these types of lineup are advantageous in that they <u>allow the witness to see the foils in person</u>.
