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anyanavicka [17]
3 years ago
13

What is the difference between liquid and illiquid assets?

Business
2 answers:
liberstina [14]3 years ago
6 0
HELLO,

the answer is liquid assets pay a lower yield than illiquid assets
Pavlova-9 [17]3 years ago
4 0
As securities or investments,liquid assets<span> pay a lower yield than </span>illiquid assets<span>. This is because investors require a higher return on an </span>illiquid asset<span>, due to the increased difficulty of selling it for cash.</span>
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Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:
KiRa [710]

Answer:

The first transaction is that 10 million shares are being reacquired at 32.50 per share so we need to find out how much cash is spent to buy these shares.

32.5*10 million = $325 million

We will debit treasury stock and credit cash because the company is buying shares from the market and paying cash

The second transaction is reacquiring 10 million shares at 36 per share so we need to find how much cash is spent

10 million *36= $360 million

We will debit treasury stock and credit cash because the company is buying shares from the market and paying cash

In the third transaction 1 million shares are being sold for 42, so need to figure out how much cash the company gets from the transaction

42* 1 million = 42 million

We will debit cash and credit common stock as the company is issuing shares to the market and getting cash for it

In the fourth transaction 1 million shares are being sold for 36, so need to figure out how much cash the company gets from the transaction

36* 1 million = 36 million

We will debit cash and credit common stock as the company is issuing shares to the market and getting cash for it

Journal entries

                                                            Debit                          Credit

Treasury stock                                      325 million

Cash                                                                                        325 million

Treasury stock                                      360 million                  

Cash                                                                                        360 million

Cash                                                        42 million

Common stock                                                                          42 million

Cash                                                        36 million

Common stock                                                                           36 million                

Explanation:        

5 0
3 years ago
The basic organizing legal document for a home-rule city is called the
Alex777 [14]
The basic organizing legal document for a home rule city is called the CITY STATUE.
Home rule refers to the government of a city, colony or an independent country by its own citizens. A general law municipality usually become eligible for home rule when the population of the people living there is more than 5,000. The law which govern the activities of those in the home rule city is called statue.
4 0
3 years ago
QS 7-10 (Algo) Aging of receivables method LO P3 Net Zero Products, a wholesaler of sustainable raw materials, prepares the foll
goldenfox [79]

Part-1  Computation of Estimated Uncollectible - Dhaliwal

Account Receivable  (a% of uncollectible (b)Uncollectible amount (a*b)

Not Due $1,00,000.00    1%                                   $1,000.00

1 to 30 $38,000.00           2%                                      $760.00

31 to 60 $17,000.00          4%                                       $680.00

61 to 90 $14,000.00            6%                                  $840.00

over 90 $16,000.00          10%                               $1,600.00

Estimated Balance of allowance for uncollectible $1,85,000.00   $4,880.00

 Part 2: Journal Entry

Account Titles and Explanation Debit Credit

Bad Debt Expenses

(4880-3000)                                          $1,880.00  

Allowance for doubtful accounts   $1,880.00

An account may be the document in a gadget of accounting wherein a business records debits and credits as proof of accounting transactions. as a consequence, the bills receivable account shops information approximately billings to customers, as well as reductions of those billings due to payments from clients.

3 specific types of debts in accounting are actual, private, and Nominal Accounts. the real account is then categorized into subcategories – Intangible real account, Tangible actual account. additionally, 3 distinct sub-forms of non-public accounts are natural, representative, and synthetic.

Learn more about accounts here: brainly.com/question/25746199

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5 0
1 year ago
the average amount of time between price changes for gasoline is multiple choice two to three months. two to three weeks. two to
melamori03 [73]

In most case, the average amount of time between price changes for gasoline is <u>two to three weeks</u>.

<h3>What is a price changes?</h3>

Most time, a price changes often come about because of changes in the conditions of demand and supply. A gasoline prices tend to always increase when the available supply of gasoline decreases relative to real or expected gasoline demand or consumption.

Some factors that change the price of gasoline are:

  • Crude oil prices
  • Refining costs
  • Taxes
  • Distribution
  • marketing costs.

Read more about price changes

brainly.com/question/3896666

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8 0
1 year ago
What is meant by market in the lower-of-cost-or-market rule?
Pavel [41]

Answer:

Stock is valued at lower of : cost or market price [prudence principle]

Explanation :

Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.

This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.

7 0
3 years ago
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