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OverLord2011 [107]
3 years ago
15

Describe a transaction that would:a. Increase both an asset and capital stock.b. Increase both an asset and a liability.c. Incre

ase one asset and decrease another asset.d. Decrease both a liability and an asset.e. Increase both an asset and retained earnings.f. Decrease both an asset and retained earnings.
Business
1 answer:
Afina-wow [57]3 years ago
5 0

Answer:

a. Increase both an asset and capital stock.

Issuance of common stock increases the cash as assets and common stock as a capital stock.

b. Increase both an asset and a liability.

Supplies purchased on account increases the Inventory as an asset and Increases the payable as a liabilities.

c. Increase one asset and decrease another asset.

Maturity of an Investment in debt instrument, Increases the cash as an asset and decreases the investment as another asset.

d. Decrease both a liability and an asset.

Payment to supplier decrease the account payable as a liabilities and cash as an asset.

e. Increase both an asset and retained earnings.

Cash Sales Increases the cash as an asset and Net profit as a retained earning.

f. Decrease both an asset and retained earnings.

Sales return decreases the account receivable as an asset and net profit as a retained earning.

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You bought a stock one year ago for $ 50.00 per share and sold it today for $ 55.00 per share. It paid a $ 1.00 per share divide
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Answer:

a. 12%

b. 2% and 10%

Explanation:

a. The computation of the realized return is shown below:

= {(Ending share price - initial price) + Dividend} ÷ (Initial price) × 100

= {$1 + ($55 - $50)} ÷ $50

= 12%

b. The computation of the dividend yield and the capital gain is shown below:

Dividend yield

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= $1 ÷ $50 × 100

= 2%

For capital gain yield:

= (Ending share price - initial price) ÷ (Initial price) × 100

= ($55 - $50) ÷ ($50) × 100

= $5 ÷ $50 × 100

= 10%

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Answer:

risk aversion.

Explanation:

Have you ever heard "A bird in the hand is worth two in the bush"?

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Tom knows that he can sue the title company and earn a lot of money, but he also knows that he might lose the case and instead of getting some money will have to spend a lot of his money in legal fees. Since he dislikes the risk of losing both the suit and his own money, he decided to accept the company's settlement.  

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