100 percent true.
there is the answer
Answer:
b. Enterprise fund and depreciation on the capital assets should be recorded.
Explanation:
Cash flow can be defined as the net amount of cash and cash- equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
Capital assets used by an enterprise fund should be accounted for in the enterprise fund and depreciation on the capital assets should be recorded.
Additionally, depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.
Answer:
b. Overvalued
Explanation:
Overvalued stocks are securities that trade higher than their fair market value, i.e. the value that the company's fundamentals, such as earnings or revenues justify.
Answer:
0.68
Explanation:
A portfolio consists of an investment of $7,500
The amount of common stock is 20
The portfolio beta is 0.65
Suppose one of the stock in the portfolio is sold with a beta of 1.0 for $7,500
The proceeds realized is then used to purchase another stock with a beta of 1.50
The first step is the to calculate the change in beta
Change in beta= 1.50-1
= 0.5
The next step is to divide the change in beta by the number of common stock
= 0.5/20
= 0.025
Therefore, the new beta can be calculated as follows
= 0.65+0.025
= 0.68
Hence the new portfolio's beta is 0.68
