Answer:
b. <u>cash, investments, and receivables, inventories, prepayments</u>
Explanation:
Financial assets refer to liquid assets which derive their value from ownership rights and claims. For example, bonds, mutual funds, etc are financial assets.
In the given case, cash, investments, receivables, inventories, prepayments (prepaid expense) etc are liquid assets and current assets which can be readily converted to cash. Investments could be both short term and long term.
Investments in treasury bonds are highly liquid.
Capital assets are usually those assets with maturity period of more than one year and unlike current assets are not intended for sale.
Answer:
D = 7980.55
Explanation:
Since the borrower pays in 6 months wich is half a year, we calculate the semi-annual rate = 
= 
= 0.0035 = 0.35%
The effective semi-annual rate is, [(0.0035)⁶- 1] = 0.02118461
![\frac{D[(1.02118461)^{16} - 1]}{1.02118461) - 1}](https://tex.z-dn.net/?f=%5Cfrac%7BD%5B%281.02118461%29%5E%7B16%7D%20%20-%201%5D%7D%7B1.02118461%29%20-%201%7D)
+ ![\frac{D[(1.02118461)^{10} - 1]}{1.02118461) - 1}](https://tex.z-dn.net/?f=%5Cfrac%7BD%5B%281.02118461%29%5E%7B10%7D%20%20-%201%5D%7D%7B1.02118461%29%20-%201%7D)
= 238000
+ 
= 238000
0.631744D = 238000 * 0.02118461
0.631744D = 5041.937
Therefore D = 7980.55
Answer:
Unearned Fees ($3,600 × 6 months ÷ 12 months) $1,800
To Advertising revenue $1,800
(Being the adjusting entry is recorded)
Explanation:
The adjusting entry is shown below;
Unearned Fees ($3,600 × 6 months ÷ 12 months) $1,800
To Advertising revenue $1,800
(Being the adjusting entry is recorded)
Here we debited the unearned fees as it decreased the liability and credited the advertising revenue as it increased the revenue account
The six months could be computed from June 1 to December 31
