Answer:
The correct answer is C) purchase Canadian dollar put options.
Explanation:
A sale option (or put option) gives its holder the right - but not the obligation - to sell an asset at a predetermined price until a specific date. The seller of the option to sell has the obligation to buy the underlying asset if the holder of the option (buyer of the right to sell) decides to exercise his right.
The purchase of put options is used as hedging, when price falls are anticipated in shares that are held, since by means of the purchase of Put the price is established from which money is earned. If the stock falls below that price, the investor earns money. If the share price falls, the profits obtained with the sale option compensate in whole or in part for the loss experienced by said fall.
Losses are limited to the premium (price paid for the purchase of the sale option). Earnings increase as the share price falls in the market.
Answer:
B. Corporation
Explanation:
Corporation is a complex structure of business ownership recognized as separate and distinct from its owners. A corporation is subdivided into small units called stocks, equity, or shares. Each share or stock represents a small part of the company. Owning a share of a corporation is equivalent to owning a small portion of the corporation. A corporation issues shares to investors when it intends to raise additional capital. The shares of corporations are traded at the securities exchange markets.
Shareholders is the title given to owners of a corporation's shares. one feature of a corporation is that it offers its shareholders limited liability to the company's debts. Should the corporation fail in meeting its obligations, shareholders' personal assets cannot be used to settle the debts.
Its common-size percent for cash equals 8.77%.
Cash is prison gentle—currency or coins—that may be used to change items, debt, or offerings. Every so often additionally it is the value of the property that may be easily converted into coins right away, as stated through an employer.
A cash price is bills or cash paid by the recipient of products or services to the issuer. It can also contain a fee inside an enterprise to employees in compensation for their hours worked or to pay off them for minor prices which are too small to be routed thru the accounts payable device.
Coins in a bank mean the contemporary balance in checking accounts, savings accounts, or the like within the call of the enterprise/enterprise applying for a certificate. Do now not encompass retirement bills or personal bank account balances.
Percent of cash to total asset = Cash / Total Assets
= 15800 / 180100
= 8.77%
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Answer:
The journal entry which is to be recorded is shown below:
Explanation:
Contract Price A/c...................................Dr $500,000
Cost of constructionA/c.........................Dr $150,000
Revenue A/c................................Cr $2,000,000
As the company recording the revenue, so the revenue account is credited. It involves the cost of construction which is debited and the contract price account is debited.
Note: The options are missing. So, proving the journal entry in the answer.
