Answer:
Equity account
Explanation:
In the case when the cash is received in exchange of the common stock so here the cash is debited and credited the common stock i.e. equity account
The journal entry is
Cash Dr XXXXX
To Common stock XXXXX
(Being exchange is recorded)
here cash is debited as it increased the assets and credited the common stock as it also increased the equity
Answer:
Targeting speech is protected by the freedom of speech clause of the First Amendment of the United States Constitution.
Explanation:
It clearly states that
<em>"Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof, or </em><u><em>abridging the freedom of speech</em></u><em>, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances."
</em>
The above amendment guarantees the freedom and the rights of individuals to speak freely. Kindly note that an individual under the law may be:
- Human or a Natural Person or a Physical Person. An example of a Natural Person is the person reading this or the person who wrote it.
- Legal, corporate, or juristic. An example of a corporate is an organisation such as is referred to in the question. The Public Utility Companies are corporate individuals and are beneficiaries of the freedom of expression or speech afforded by the First Amendment.
Cheers!
Answer:
a. False.
b. True.
c. False.
d. False.
e. True.
Explanation:
a. Assets other than cash are expected to produce cash in future at some point but it is not necessary that every asset produces exactly the same amount at which it is carried in the financial statements. For example there is account receivable balance of $100,000, but it is not mandatory that all receivable will be converted into cash overtime as there can be bad debts expense also which will result in reducing accounts receivable balance.
b. Annual reports are often used by existing and potential investors for decision making purpose whether it is beneficial to invest in a certain company based on its financial statements analysis, to identify the risks that the company is exposed, the ability of a company to generate cash flows, potential future earning capability of a company and going concern status.
c. The annual report is not solely used by its creditors/lenders, it is prepared for a wide range of users. For example: shareholders, directors, investors, etc.
d. Cash budget is not a financial statement and it is not mandatory in the annual report, four most important financial statements which are required in the annual reports are balance sheet, income statement, cash flow statements, and statement of stockholders' equity.
e. After the Enron scandal annual reports cannot contain managements verbal reasoning’s, they needs quantitative and reasoning’s based on facts and figures which can be verified and audited to avoid misleading information provided in the annual reports and reduce chances of window dressing in the financial statements.
Answer: b. The beta of the portfolio is higher than the highest of the three betas
Explanation:
The beta of a portfolio is calculated as a weighted average of the individual betas of the individual stocks. As such, the highest individual beta will be the upper limit of the portfolios entire beta.
For instance.
3 stocks A, B and C have betas of 1, 1.3 and 2 respectively.
A has a weight of 1%, B has a weight of 1% and C has a weight of 98%.
The portfolio beta will be;
= (0.01 * 1 ) + ( 0.01 * 1.3) + ( 0.98 * 2)
= 1.98
Even if the stock with the highest beta had an advantage of weighing such a high figure, it it mathematically impossible for the portfolio beta to be higher than it.