Let's match each portfolio asset with its defintion
trading paper assets. It involves buying and selling of stocks, bonds, mutual funds, derivatives, and currencies. The paper asset is a representation of an underlying asset that can be of many types: stock, bonds, etc. Literally it is a piece of paper where the ownership of an asset is stated.
stocks: It represents ownership in a corporation. The capital of such company is divided in equally-valued shares which are sold in the financial markets and the buyers become its owners in the proportion of the value of the shares they have purchased.
mutual funds: It is a financial investment that pools money from investors to invest in securities. They have certain advantages if compared to investing individually on securities. They enable to reach economies of scale when conducting investments, they involve a higher level of diversification, more liquidity and they are controlled by professionals.
derivative: It is a contract whose value derives from other financial assets. More specifically, its value depends on an underlying, which can be an asset, an index, etc. Derivative contracts can be issued with a multiplicity of objectives: to protect other investment against price variations (insurance), to speculate, etc.
Answer:
Product
Explanation:l
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A product-centric company is a company that is more concerned about the products it offers to consumers in the market than the consumers of the product.
A consumer centric company is a company that is mostly concerned about the consumers of its products.
Answer:
$10,025
Explanation:
The change in raw material account balance at the start of a period and at the end of the period is as a result of 2 factor namely; use and purchases.
While use will result in a decrease in the account balance, purchases will cause an increase. This may be expressed mathematically as
Opening balance + purchases - use = closing balance
$500 + $10,250 - G = $725
where G represents the cost of the materials used during the period
G = $500 + $10,250 - $725
= $10,025
Answer
It’s true
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Sorry if wrong
Answer:
The amount to record as the cost of this long-term investment in bonds is $771,500
Explanation:
The computation of long term investment in bonds is shown below:
= (Face value × cost of bond) + brokerage cost
= ($750,000 ×1.01) + $14,000
= $757,500 + $14,000
= $771,500
The accrued interest should not be included in the computation of long term investment because it is not a received cost, it is earned but actually it is not received. Hence, this accrued interest would not be considered in the computation part.
Thus, The amount to record as the cost of this long-term investment in bonds is $771,500