Answer:
Boat is an asset.
Most liquid = $5 bill
Second most = Fund in saving account
Third most = Bond
least liquid = Boat
Liquidity means easily convertible into cash. $5 bill is the most liquid while asset cannot be easily and readily convertible into cash.
Explanation:
Explanation:
Disruptive technology, new business ventures, and increased availability of data are quickly changing traditional financial reporting and assurance processes. As a result, prospective auditors not only need to understand fundamental auditing concepts, but also need to anticipate the influence that disruptive technology will have on the profession. The following case study provides a lens through which prospective auditors can view the coming changes to the profession by asking them to consider how the online lending company, Kabbage, is currently disrupting the lending industry for non-traditional and small businesses. Students contemplate several fundamental auditing concepts such as audit evidence, financial statement assertions, and analytical procedures while also acquiring insight into the effects that new and disruptive technology will have on the profession. The intention is to encourage students to embrace coming changes and become lifetime learners.
Answer:
1)
Some of the major reasons why Garden Haven might to choose to either invest in debt or equity securities are as follows;
- They want to generate earnings. It is better to earn money from excess cash than keep it idle.
- They invest in debt or securities because they provide liquidity. Investments in debt or securities can be sold through exchange the day decision is taken to see and convert it cash
.
- To meet cyclical cash needs.
- They may have policies as regard to quantum of cash that can be kept
.
2)
In terms of classification, Garden Haven's investment falls in short term investments.
Investments made for a period less than a year are classified as short term investments. Investments made for longer than one year are classified as long term investments. Since Garden Haven is making this investment for four months, this is be classified as short term investment.
Answer:
a. $125 per month
b. $10,300 per month
Explanation:
Data provided in the question
Paid amount as a corporate accountant = $10,000
Renting cost = $300
Purchase of office supplies = $75
Monthly electric bill = $50
The computation is shown below:
a. Explicit cost
Explicit cost = Purchase of office supplies + increase in monthly electric bill
= $75 + $50
= $125 per month
b. Implicit cost
= Paid amount as a corporate accountant + renting cost
= $10,000 + $300
= $10,300 per month
Answer:
Expected Portfolio return = 0.5(10)+0.5(13)= 5+6.5=11.5%
Expected Portfolio SD= 0.5(20)+0.5(30)= 25%
Beta of A, 10= 5+B(6)
5=6B
B= 5/6= 0.833
B of B, 13=5+B(6)
8=6B
B=8/6
B=1.33
b. Portfolio AB's standard deviation is 25%
c. Stock A's beta is 0.8333
These two statements are correct
Explanation:
