Effect in the accounting equation when cash dividends are declared

If the Mayor of Little Rock, Arkansas is also a director of a Little Rock municipal securities dealer, which of the following st

riadik2000 [5.3K]

Answer: B. I and IV

Explanation:

A CONTROL RELATIONSHIP is defined as a situation where an issuer is controlled by the DEALER, or the Dealer is controlled by the Issuer, or there common control between the Issuer and Dealer of the security. As Mayor of Little Rock and also the Director of the Municipal Dealer, there is definitely a CONTROL relationship going on.

The Municipal Securities Rulemaking Board (MSRB) requires that when a control relationship exists between a municipal securities dealer and the issuer whose bonds are recommended by that dealer, the nature of the relationship must be DISCLOSED to the customer.

Hence option B is correct.

4 0

3 years ago

Jessica Simpson sets up shop to sell “Buffalo Wings.” She observes that if the price drops from $3.50 per order to $2.50 per ord

Sidana [21]

Answer:

(I) Price elasticity = 1/6

(II) the $2.5 price gives the higher revenue: 1,250

Explanation:

(I) price elasticity

$E_s =\frac{\frac{Q2 - Q1}{(Q2+Q1)/2}}{\frac{P2 - P1}{(P2+P1)/2}}$

↑Q (500 - 300)/((500+ 300) / 2)

↑Q 200 / (800/2) = 200/400 = 1/2

↑P (3.5 - 2.5)/((3.5+2.5)/2)

↑P 1/(6/2) = 1/3

$Es = \frac{1/2}{1/3} = 1/6$

(II) total revenue

3.5 x 300 = 1,050

2.5 x 500 = 1,250

7 0

3 years ago

Read 2 more answers

On December 31, 2017, Oakbrook Inc. rendered services to Beghun Corporation at an agreed price of $102,049, accepting $40,000 do

galben [10]

Answer:

Loan Amortization Table is attached with this answer, please find it

Explanation:

First of all we calculate the Loan Payment per period

Loan Payment per year = r ( PV ) / 1 - ( 1 + r )^-n

Loan Payment per year = 0.11 ( (102,049 - 40,000 ) / 1 - ( 1 + 0.11 )^-4

Loan Payment per year = $6,825.39 / 0.341269 = 20,000 per year

6 0

3 years ago

In the manufacture of 9,400 units of a product, direct materials cost incurred was $174,900, direct labor cost incurred was $109

stiv31 [10]

Answer:

$154,000

Explanation:

Calculation to determine the total conversion cost

Using this formula

Total conversion cost=Direct labor cost incurred

+Applied factory overhead

Let plug in the formula

Total conversion cost =$109,800+$44,200

Total conversion cost=$154,000

Therefore Total conversion cost is $154,000

5 0

3 years ago

A company has $99,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.

quester [9]

Answer:

Dr Bad debt expense 3,070

Cr Allowance for doubtful accounts 3,070

Explanation:

$99,000 in accounts receivables

4% is considered bad debt

$99,000 x 4% = $3,960

the current balance for allowance for doubtful accounts = $890 (credit)

the adjusting entry for allowance for doubtful accounts = $3,960 - $890 = $3,070

the journal entry should be:

Dr Bad debt expense 3,070

Cr Allowance for doubtful accounts 3,070

the final balance of the allowance for doubtful accounts = $3,070 + $890 = $3,960

7 0

3 years ago