Answer:
yes
Explanation:
Based on this scenario, it can be said that yes the attorney's actions are proper because the referral fee was reasonable. A standard referral fee percentage could be around 10% for a closed job, starting at around 2-5% for e-mail introductions and even up to 15-20% for referrals where the referrer deals alone with the client. As long as the referral fee is reasonable and the attorney is not taking advantage then his/her actions are proper and ethical.
Answer: A reversing entry: <em><u>"is the exact opposite of an adjusting entry made in a previous period.".</u></em>
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Explanation: Reversion entries are an end-of-the-year technique that involves the reversal, on the first day of the new accounting period, of those end-of-year adjustment entries that cause expenses or income and therefore will result in payments or cash receipts. Its purpose is to allow company personnel to record routine transactions in a standard manner without referring to previous adjustment entries.
Answer:
The interest rate on a 10-year corporate bond for a company with AA rating will be higher than for a 10-year bond for a company with a BBB- rating.
True
Answer:
A = $4000
Explanation:
given data:
total investment $12000
interest on CD= 4%
Interest on bond =7%
the portion invested in the CD is A
total portion invested as a bond = $12,000 - A
total portion earned on the CD = 0.04A.
The total interest gain on the bond = 0.07(12000 - A).
equation for the total interest earned is:
0.04A + 0.07(12000 - A) = 720
0.04A + 840 - 0.07A = 720
-0.03A = -120
A = $4000