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3 years ago

All of the following statements about stock indexes are true EXCEPT

Business

1 answer:

sesenic [268]3 years ago

6 0

Answer:

C. stock indexes are unbiased and perfect indicators of market activity.

Explanation:

Stock indexes are a tool that is used to track a group of assets using standardised criteria.

Usually indexes monitors a group of securities. Indexes can be broad based or specialised.

Indexes are statistically derived benchmarks that securities are measured against. They are however not unbiased and perfect indicators of market activity.

This is because investor behaviour cannot be guaged statistically.

However indexes replicate the market activity in a certain segment of the stock market, serve as a benchmark to evaluate investment manager performance, and are based on criteria that define the market segment of interest.

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New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery fo

spayn [35]

Answer:

The balance in the accumulated depreciation account at the end of the second year is $146,000.

Explanation:

Straight line method charges a <u>fixed depreciation charge</u> on the asset during its period of use.

Depreciation Expense (Straight line) = Cost - Residual Amount ÷ Estimated Useful life

= $778,000 - $48,000 ÷ 10

= $73,000

Therefore, for each year, a depreciation expense of $73,000 is charged to profit an loss.

Accumulated Depreciation Calculation :

Depreciation Expense : Year 1 $73,000

Depreciation Expense : Year 2 $73,000

Total Expense $146,000

5 0

2 years ago

Tropic beach balls, inc. is considering several investment options. if the company wants to maximize investment income, when is

poizon [28]

The best time to invest would be <span>c : when sales are consistent.
When sales are consistent, companies do not have to worry about unpredicted occurrences that could threaten their finance because they could always cover it in the next inflow. During this time, company could start making their investment as long as the investment is highly liquid.</span>

5 0

3 years ago

The management of GH Apparel has thoroughly analyzed the market and recognizes the wants and needs of different customer groups.

Sergio039 [100]

Answer: Market-oriented

Explanation:

The market oriented organization is one of the type of business approach that producing the various types of products and the services according to the customer requirement or desire.

The main aim of the market oriented organization is that they focus on the selling and also designing goods and the services that satisfied the consumer desire.

According to the given scenario, the management of the GH apparel is the market oriented organization as it properly analyzed the market and also recognize the actual requirement of the customer.

Therefore, Market-oriented is the correct answer.

5 0

2 years ago

Sweet Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction

Reika [66]

Answer:

$4,775,565.49

Explanation:

The computation of the selling price of the bond is shown below:

Particulars Amount PV factor 6% Present value

Semi-annual interest $216,209 19.60044 $4,237,791.53

Principal $3,088,700 0.174110131 $537,773.96

Total $4,775,565.49

Working notes

Semi-annual interest $216,209 = $3,088,700 × 14% × 6 ÷ 12

PV factor 3%:

Semi-annual interest 13.76483115 = {(1 - (1.06)^-30) ÷ 0.06 }

Principal 0.174110131 = {1 ÷ 1.03^30}

6 0

3 years ago

EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 4% preferred

xxMikexx [17]

Answer:

Ellajane Corporation - Journal Entries

Date Particulars Debit Credit

1-Mar Treasury Stock $35,000

To Cash $35,000

(Being 2500 shares of treasury stock purchased at $14 per share)

10-Apr Cash A/c (1250*$18) $22,500

To Treasury Stock (1250*14) $17,500

To Additional Paid in Capital $5,000

(Being 1250 shares of treasury stock sold at $18 per share)

12-Jun Cash A/c (1250*12) $15,000

Additional Paid in Capital A/c $2,500

To Treasury Stock (1250*14) $17,500

(Being 1250 shares of treasury stock sold at $12 per share)

4 0

2 years ago