Answer: Option E
Explanation: The difference between a partnership firm and a corporate firm is the extent of liability of the owners. In case of partnership firm the extent of liability of the partners are unlimited and their personal assets could be sold to pay off the debt in case of any default.
On the other hands, in case of corporate firm the extent of liability of owner is limited to their capital investment. In case of a company structure, the company and the owner are considered to be separate.
Hence from the above we can conclude that the correct option is E.
Answer:
true
Explanation:
Assume, original stock was A. Now a new stock B is added.
Weight of Stock A in the portfolio=Wa
Weight of Stock B in the portfolio=Wb
Standard Deviation of Stock A=Sa
Standard Deviation of Stock B=Sb
Cova,b=Covariance between Aand B
Portfolio Variance=(Wa^2)*(Sa^2)+(Wb^2*Sb^2)+2*(Wa*Wb*Cova,b)
Correlation between A &B=(Cova,b/Sa*Sb)
Cova,b=Sa*Sb*(Correlation between A&B)
Hence,higher the correlation between A&B, higher will be the covariance (Cova,b).
Hence higher will be the Portfolio variance.
So, the reduction of risk will be lower.
Answer: The proper amount of net income as at December 31, 2018 is $58,750.
Explanation: Trojan Corporation adjusted net income for the year ended 31 December 2018 would be as follows:
Net income (unadjusted) - $85,000
a) Adjust for amortization of prepaid insurance of $1,250 per month ($15,000/12 * 3) - (3,750)
b) Reclassify service revenue to unearned revenue (liability) - (2,500)
c) Reclassify supplies expense to supplies (asset) - (2,000)
d) Adjust for interest expense of $550 per month (12% of $55,000 * 4 / 12) - (2,200)
Net income (adjusted) - $58,750
The projected cash disbursements for Whetzel Corporation for November is $1,090,000. This is calculated as follows: the beginning cash balance of $50,000 will be increased for the November cash collections of $1,000,000 and the cash borrowed of $70,000 (a cash inflow). This amount of total cash inflows would then be reduced by the total disbursements to get to the ending balance of $30,000. By subtracting the $30,000 ending balance from the above number we will get the total disbursements. See below:
$50,000+$1,000,000+$70,000=$1,120,000
$1,120,000-$30,000=$1,090,000
Check:
$50,000+$1,000,000+$70,000-$1,090,000=$30,000 (agrees to ending balance)
