Answer: option C
Explanation: Cash flow can be categorized as inflow and outflow. Inflow can be defined as the money coming in the business like revenue. Cash outflow is money leaving the business like in form of expenditures.
Excess of cash inflow over cash outflow results in positive cash flows and vice- versa.
a. Debt is a source of capital hence its issuance will result in inflow of money.
b. Company will have to spend money for repurchasing the stock therefore it will be a cash outflow.
c. selling of assets will bring money to the firm,hence,cash inflow.
Thus, occurrence of either A or C can result in increase in cash flow.
Answer: Hedge funds are not as highly regulated as most other types of financial institutions. The justification for this light regulation is that only "sophisticated" investors (i.e., those with high net worths and high incomes) are permitted to invest in these funds, and these investors supposedly can do any necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.
Explanation:
Hedge fund is simply an investment company which invests the money of its clients in alternative investments so that it'll be able to provide hedge against the changes that may later occur in the market or in order to beat the market.
Hedge funds are not as highly regulated as most other types of financial institutions. The justification for this light regulation is that only "sophisticated" investors (i.e., those with high net worths and high incomes) are permitted to invest in these funds, and these investors supposedly can do any necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.
Answer:
New evidence of processing
more extensive testing of records
separation of duties
reduced processing errors
Answer:
Inventory Dr.$5,540
Accounts Payable Cr.$5,540
(To record purchase of inventory from crane company credit basis)
No Entry for $3,390 as it is purchase cost of Crane and we are doing accounting entries for Larkspur Company not crane company.
Accounts Payable Dr.$670
Inventory Cr.$670
(To record purchase return)
No Entry is required for scrap value i.e $360 as we are returning the goods to seller not selling the said goods in open market.
Explanation:
Perpetual inventory takes care of bookkeeping more often by recording sales and purchase transaction as and when transaction occurs.
No entry is required for cost of purchase of crane company as we are doing accounting for larkspur company not crane company.Further scrap value is irrelevant when inventory is to be returned to crane company. If we had to sale the same inventory rather then returning the goods to crane then only we had to account for scrap value.