Answer:
Par value of bonds = $257,000
Issue price of bonds = 99
Cash receipts from issue of bonds = 257,000 x 99% = 254,430
Discount on bonds payable = Par value of bonds - Cash receipts from issue of bonds
= 257,000-254,430
= $2,570
Date Account Titles and Explanation Debit Credit
March 1 Cash $254,430
Discount on bonds payable $2,570
Bonds payable $257,000
(To record issuance of bonds)
Answer:
If only 10-unit orders are produced, the process capacity is:
= 10 units per order
Explanation:
The process capacity refers to the total quantity produced from a process within a referenced period of time. This simply means that process capacity refers to the production capacity of a process. It can also refer to the maximum output produced by a resource during a particular production process.
Answer:
Actus Reus
Explanation:
Actus Reus is action which constitutes a crime rather than mental state of the criminal. For an accused to charge with crime there should be proof and presence of Actus Reus. In absence of any strong evidence the accused can not be charged with criminal charges.
Answer: General Leger account balances aggregate data to determine payroll costs
.
The account balances form the basis for accounting reports.
Explanation: a General ledger is defined as the central accounting record of a company or organization consisting of the accounts that support the value items shown in the major financial statements.
The general ledger provides information of accounting reports which in turn is used to balance aggregate data to determine payroll costs
.
Answer:
D) Stock prices of companies that announce increased earning in January tend to outperform the market in February.
Explanation:
The above is consistent with the Efficient Market Hypothesis. All others are a direct contravention.
<em>The efficient market hypothesis (EMH), also known as the efficient market theory, is a hypothesis that states that the prices of shares contain all information and that consistent alpha generation is impossible.</em>
According to the hypothesis, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices.
This means that it should not be possible to outperform the overall market through professional stock selection or market timing.
The only way according to EMH that an investor can obtain better returns is by purchasing riskier investments.
By implication, this also means that it is not possible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.
You would note that in the option D, earning (which is a key driver for demand of stock) is announced in one month. The natural reaction would be for the demand for that stock to surge in the next month.
