Answer:
$2,000
Explanation:
Data provided in the question
Number of shares purchased = 100 shares
Price of common stock = $25
Given percentage = 50%
Based on the above information, there is no borrowing taken place in a margin account because there is a minimum requirement to maintain $2,000 in equity and when the purchase is made lower than $2,000 so it is important to pay the amount in full and the deposits are important when it is made more than $2,000 in the case when the trade is more than $4,000
Answer:
A) True
Explanation:
The internal control structure deals with the rules, laws, procedures, practices that vary from company to company that are necessary to attain an organization's goals and objectives.
The substantive testing is an audit process aimed at checking the accuracy and reliability of the financial statements. To check if the financial statements are free from any errors, mistakes, fraud, etc. that can change users' decisions.
The financial statements should be relevant, reliable and finalize in all respects.
Therefore, a strong internal system will reduce the quantity of substantive testing required.
Answer:
Accounting rate of return = 20.53%
Explanation:
<em>The accounting rate of return is the average annual income expressed as a percentage of the average investment.</em>
The simple rate of return can be calculated using the two formula below:
Accounting rate of return
= Annual operating income/Average investment
× 100
Average investment = (Initial cost + scrap value)/2
= 30,000/2= 15,000
Accounting rate of return = ( 3080/15,000) × 100
= 20.53%
Accounting rate of return = 20.53%
Answer:
Option "C" is the correct answer to the following question.
Explanation:
Given:
Issue price of share = $100
Market price per share = $100
Preferred stock dividend rate = 7%
Computation of dividend per year :
Dividend per year = Issue price of share × Preferred stock dividend rate
Dividend per year = $100 × 7%
Dividend per year = $7
Dividends are always paid to preferred stock at fixed rates at face value.
Either A or C would be right, because it couldn't be a decrease of the equity.
