Answer:
are last in line to receive income.
Explanation:
Common stock holders are referred to as the owners of the company. They own shares that gives them the right to vote in a company's general meeting, receive dividends, and they have the right to get newly issued shares in the company before others.
However they are also called unsecured creditors of the company because when the business makes income they are the last in line to receive dividends if any remains.
Also in the case of bankruptcy preference share holders and other creditors are paid first. Common share holders are paid last.
the economy predicts what happens to the financial market. Example the 2008 recession happened because of the economy lot of people were losing jobs and defaulted on their mortgages which caused the 2007 real estate crash.
Answer:
$500 gain and $185 tax
Explanation:
Sale of share = No. of NQOs × No. of shares × Selling price per share
= 10 × 10 × $20
= $2,000
Basis = No. of NQOs × No. of shares × share price @$15
= 10 × 10 × $15
= $1,500
Gain realised = Sale of share - Basis
= $2,000 - $1,500
= $500
The tax is calculated as follows:
= Gain realised × marginal tax rate
= $500 × 37%
= $185
Answer:
D. Increase; increase
Explanation:
Exchange rate is defined as the amount of one currency that can be exchanged for another currency at a particular time.
Demand and supply affects exchange rates of currencies.
Currencies that are in more demand tend to have higher exchange rates, while those with low demand will have low exchange rate.
In this instance an increase in preference for US goods will cause an increased demand for dollars. The dollar becomes stronger against the Peso.
It will take more pesos to purchase the dollar, so equillibrum exchange rate of peso to dollar will increase.
Answer:
Option (d) is correct.
Explanation:
Given that,
Inventory sold to Alberta, Inc. on account = $5,800
Cost of goods sold = $4,000
The journal entries are as follows:
(i) On October 1,
Accounts receivable A/c Dr. $5,800
To sales A/c $5,800
(To record the credit sale of inventory)
(ii) On October 1,
Cost of goods sold A/c Dr. $4,000
To Merchandise inventory A/c $4,000
(To record the cost of goods sold)
