Answer:
If the price of a security represented by the futures contract <u>INCREASED</u> over the year, then these speculators would likely have purchased the futures contract for <u>LESS</u> than they can sell it for.
Explanation:
The whole idea behind securities trading is to buy cheap and sell at a higher price. The term speculator usually refers to an investor that only trades with securities to be able to make short term gains, they do not invest money as long term investments. There is nothing wrong with them, it a risky job that yields high gains or extreme losses.
Answer:
b The accrual basis records revenues when services or products are delivered and records expenses when incurred; AND -
d. The cash bases records revenues when cash is received and records expenses when cash is paid
Explanation:
Accrual basis of accounting states that transactions are recorded based on when they are entered into, irrespective of the cash exchange done or not. Revenues are recognised when buyer's liability to pay has been established, expenses are recorded when our liability to pay has been established. Debtors & Creditors, outstanding & prepaid expenses, accrued & prepaid income are all implications of this basis.
Cash basis of Accounting states that transactions are recorded based on when cash exchange has occurred. 'Liability to pay' or 'obligation to receive' have no relevance in this, it is only evaluated on the basis of cash transactions. 4 implications given in accrual basis are also inapplicable here.
Accrual basis is the more generally accepted one than cash basis, as it gives a true picture of enterprise performance in an accounting period.
Answer:
budgeted sales revenue will be 150,000
Explanation:
It expects to sell 30,000 at $5 each
so sales revenue would be
The beginning and ending inventory has no relevance. The question is <em><u>already telling us how many unis the company expecs to sell </u></em>and their unit price.
We just have to multiply
Answer:
An average of 3,000 ($25 per delivery) I beleive.
Explanation:
Hope this helps!
Answer:
$10,125 Favorable
Actual quantity of the cost-allocation base used - Actual quantity of the cost-allocation base that should have been used to produce the actual output) × Budgeted variable overhead cost per unit of the cost-allocation base
Explanation:
Variable overhead spending variance = Actual Spending - budgeted Spending based on actual quantity
Variable overhead spending variance = (Actual Input x Actual rate) - ( Actual input x Budgeted rate)
Variable overhead spending variance = (10,125 x $29) - ( 10,125 x $30)
Variable overhead spending variance = $293,625 - $303,750
Variable overhead spending variance = $10,125 Favorable
Variable overhead spending variance is
Actual quantity of the cost-allocation base used - Actual quantity of the cost-allocation base that should have been used to produce the actual output) × Budgeted variable overhead cost per unit of the cost-allocation base