Answer:
No, the investment is not increased in any accounting method so it must not be increased.
Explanation:
The reason is that in the cost method, the investment remains the same because the return is treated as income.
In the held for trading, the return received is treated as decrease in the investment because the dividend received decreases the fair value of the investment. Similarly in the equity method the dividend received is treated as cash withdrawal or we can say that dividend received decreases the fair value of the investment.
Answer:
B) $7.36
Explanation:
The preferred stocks' dividends = 8,000 x $20 x 10% = $16,000
To calculate earnings per share (EPS), we subtract the preferred stocks dividends from the net income = $200,000 - $16,000 = $184,000
Now we divide by the total number of common stocks = $184,000 / 25,000 shares = $7.36
*Convertible bonds are not included in this calculation, they should be included only after they are converted into stock.
Answer: True
Explanation:
US State Laws protect home buyers by requiring that home sellers disclose any and everything in the property that may reduce the value of the property.
They require that any repairs that need to be made and any defects that it may have be disclosed before the property is sold. This is particularly true for Texas.
If a property is sold wilfully with knowledge of these defects then the party selling is liable for fraud as well as a civil suit that the seller may bring against them. Selling the house under the condition ' As Is ' does not void these obligations either.
So yes, as Bob was aware of this issue and remained silent, he must pay $50,000 to Jill or fix the termite damage, even though the home is no longer his.
Answer:
(A) acceptability
Explanation:
Medium of exchange, store of value and unit of account are all functions of money. Acceptability is only a characteristic of money.
Answer:
Varies directly with the interest rate.
Explanation:
Varies directly with the interest rate.
The opportunity cost of holding the money will be the earning that can be made by investing the money. Basically, it is the interest rate that an investment provides when money is invested. If the money is not invested and it just held then the interest rate that could be earned is the opportunity cost.
