Solution :
Given :
The stock index contracts at = $ 394.85
Index = $ 392.54
Risk fee rate = 2.83 %
Dividend = 2.08 %
Now take long position on the index at $ 392.54 per share
After 75 days, they have to pay $ 392.54 + 392.54 x 2.83 x 75/365
= $ 394.823
Take s short position on the stock index futures contract on $ 394.85 per share.
Dividends received = $ 392.54 x 2.08%
= $ 8.164
Therefore, there is an arbitrage opportunity.
Answer: Account and Settings > Advanced > Automation
Explanation:
The options are:
a. Account and Settings > Sales > Products and Services
b. Account and Settings > Expenses > Messages
c. Account and Settings > Advanced > Automation
d. Account and Settings > Advanced > Accounting
For a QuickBooks Online user to be able to apply a Credit Memo transaction automatically to the invoice of a customer, it should be noted that one can turn the apply credits checkbox automatically in Account and setting > advanced> automation.
One should first click on Account and settings, after which the Advanced tab will be clicked on. Then, one will select automation. Finally, one will click on apply credits automatically.
Answer:
See explanation section.
Explanation:
Income summary Debit = $49,800
Expenses Credit = $49,800
To record the closing entry for expenses. We have to close expenses because it is a temporary account. So when we close any debit entries such as expense accounts, we have to credit those expense accounts so that the accounts have zero(0) balance.