<h3>
Answer :</h3>
<em>Less than</em>
(If a business has a negative cash flow, the revenue must be less than operating expenses.)
Answer:
the inventory should be recorded at $8,500
Explanation:
As we know that according to GAAP, the inventory should be recorded at a cost or net realizable value whichever is lower
So as per the question
Historical cost is $12,000
And, the net realizable value is
= Expected selling price - expected selling cost
= $9,000 - $500
= $8,500
So, the lower cost is $8,500
Hence, the inventory should be recorded at $8,500
Available Options are:
A. Investors' allowable investment depends on the accredited or non-accredited status.
B. Investors may invest a combined $50 million within a 12-month period.
C. Investors may invest no more than $1 million combined for the first year of the business.
Answer:
Option C. Investors may invest no more than $1 million combined for the first year of the business.
Explanation:
The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:
1. $2000
2. Or the lesser of (If the net worth of Wendy is less than $100,000)
- 5% of its total income for the year
- Net worth
There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.
Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.
This means the non-accredited investor can not invest more than $1 million.
Answer:
The correct answer is letter "C": I, II and III.
Explanation:
Portfolio Turnover estimates the fund's percentage of assets that its manager buys and sells for over one year. <em>Portfolio turnover can affect the return of the portfolio, as transaction costs such as commissions and fees are drawn from the assets of the fund</em>. Usually, fund managers who trade securities aggressively try to increase their commission.
<em>Higher portfolio turnover rates imply incurring in higher capital gains translated in higher returns overall but come along with higher taxes that must be paid equally among investors. Both benefits and liabilities are allocated evenly among entrepreneurs into the investment.</em>