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tatyana61 [14]
4 years ago
7

A sale of treasury stock may result in a decrease in paid-in-capital. All decreases should be charged to the Paid-In-Capital fro

m Sale of Treasury account.a. true b. false
Business
1 answer:
baherus [9]4 years ago
6 0

Answer:

b. false

Explanation:

A loss making treasury stock sale will decrease the paid-in-capital account by the amount of loss only.

In case of Loss

                           Dr.     Cr.

Cash                   xxx

Paid-In -Capital  xxx

Treasury                      xxx

In case of Profit

                           Dr.     Cr.

Cash                   xxx

Paid-In -Capital           xxx

Treasury                      xxx

As Paid-In-Capital account is part of equity account and it has credit balance. Hence Paid-In-Capital balance will only be reduced in case of loss making treasury shares sale.

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In a newsvendor model where the demand has normal distribution, if Co < Cu, i.e., the overage cost is lower than the underage
mars1129 [50]

Answer:

maximum

Explanation:

The newsvendor model may be defined as the mathematical model which is characterize by the fixed prices as well as the uncertain demand for the perishable products. This model is mainly used to determine the optimal inventory level.

According to the newsvendor model, there is only one opportunity to order. The cost of buying large quantities of the products may result in disposing them or selling the products at a lower price.

The optimal ordering quantity is maximum when the underage cost is higher than the overage cost.

8 0
3 years ago
The Rule of 70 applies in any growth rate application. Let’s say you have $1000 in savings and you have three alternatives for i
AlekseyPX

Answer:

a. 7,000 years

b. 2,333 years

c. 875 years

Explanation:

Based on rule of 70, we can have the following formula to do the calculation:

Number of years to double = 70 ÷ Interest rate per year .................... (1)

We can now calculate as follows:

a. A savings account earning 1% interest per year.

Number of years to double = 70 ÷ 1% = 7,000 years

b. A U.S. Treasury bond mutual fund earning 3% interest per year.

Number of years to double = 70 ÷ 3% = 2,333 years

c. A stock market mutual fund earning 8% interest per year.

Number of years to double = 70 ÷ 8% = 875 years

Note:

It can be observed that the higher the interest rate, the lower the number of years it will take the investment to double.

3 0
3 years ago
An example of global dependency is when products are produced and used in the same country? True or false
alexandr402 [8]

Hello there,

An example of global dependency is when products are produced and used in the same country?

Answer: False

8 0
3 years ago
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