Answer: Check attachment
Explanation:
A cash basis income statement is simply referred to as an income statement which contains revenues and expenditures for the company whereby cash has either being received or paid by the company.
For accrual basis income statement, revenue and expenditures are recorded when they're either earned or made.
Check the attachment for more analysis.
Answer:
TRUE
Explanation:
It is true that under the all-events test, in addition to specifying that all events to establish the liability must have occurred, the test also provides that the business must be able to determine the amount of the liability with reasonable accuracy
Under Sec. 461(h), a three-prongall-events test is met when
(1) all events have occurred that establish the fact of the liability;
(2) <u>the amount of the liability can be determined with reasonable accuracy</u>; and
(3) economic performance has occurred.
Answer:
B. 8t + 12s = 216; t = 3s
Explanation:
t-shirts = $8 each
shorts = $12 each
$216 total
t-shirts sold = 3 x shorts
Answer:
The calculations are shown below:
Explanation:
The calculations are shown below:
a. The expected rate of return is
Return = Risk free return + Beta × (Market return - risk free return)
= 5% + 1.9 × (11.20% - 5%)
= 5% + 11.78%
= 16.78%
b. Now the alpha is
Alpha = Actual rate of return - Expected rate of return
= 9.2% - 16.78%
= - 7.58%
c. No , the CAPM is not valid as the expected rate of return is more than the actual rate of return
Answer:
D. A rolling budget is a budget or plan that is always available for a specified future period, by continually adding a period (month, quarter, or year) to the period that just ended. A four-quarter rolling budget for 2017 is superseded by a four-quarter rolling budget for April 2017 to March 2018, and so on
Explanation:
A rolling budget is a budget that is always updated with a new budget period when the recent budget period is over.
