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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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âas an individual consumes more of a given good or service, the marginal utility of that good to the consumer likely:

Ilya [14]

Answer: " DECREASES" .___________________________________

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3 years ago

Osage Corporation issued 3,700 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit acco

Elden [556K]

Answer:

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock....................33,300

Cr. Additional Paid in Capital..24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium

Explanation:

(a) The stock had a par value of $9 per share and was issued for a total of $58,000.

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock....................33,300

Cr. Additional Paid in Capital..24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium

(b) The stock had a stated value of $9 per share and was issued for a total of $58,000.

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock....................33,300

Cr. Additional Paid in Capital..24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium

JOURNAL ENTRY

Dr. Cash..................58,000

Cr. Common Stock............58,000

Being issuance of 3700 common stock with no stated value per share

(d) The stock had a par value of $9 per share and was issued to attorneys for services during incorporation valued at $58,000.

JOURNAL ENTRY

Dr. Service fees..................58,000

Cr. Common Stock.........................33,300

Cr. Additional Paid In capital........24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium; for attorney fees

(e) The stock had a par value of $9 per share and was issued for land worth $58,000.

JOURNAL ENTRY

Dr. Service fees..................58,000

Cr. Common Stock.........................33,300

Cr. Additional Paid In capital........24,700

Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium; for acquisition of land.

7 0

3 years ago

Bee Sting bought 400 shares of Google at $399.75 per share. Assume a commission of 2% of the purchase price. What is the total t

daser333 [38]

Given:
400 shares of Google
399.75 per share
2% commission on purchase price.

400 shares * 399.75/share = 159,900
159,900 x 1.02 = 163, 098

The total to Bee Sting is $163,098

5 0

3 years ago

The_________for a soft drink manufacturer would include other manufacturers of soft drinks, fruit juices, bottled water, sports

AlladinOne [14]

Answer:

The answer is A

Explanation:

Competitive environment is an environment where competitors compete with one another for customers.

For example, Westpac, NAB, Commonwealth Bank and ANZ are in the same competitive environment. These are banks in Australia.

Types of competition are perfect competition, monopoly, monopolistic competition, oligopoly etc.

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3 years ago

Which of the following could be used as a basis to allocate profits among partners who are active in the management of the partn

grandymaker [24]

Answer:

1, 2, 3 & 4

Explanation:

All of the given options could be used as a basis to allocate the profit among partners. Allocation of salaries is also a basis for profit allocation. Salaries of partner is deducted from the net profit on the basis of predetermined ratio or amounts.

The numbers of years can also be a base for the profit allocation. The partner from the long time could have more share than a new partner but it depends on the agreement of all the partners.

The profit can also be based on the the amount of work work done or time spent by each partner. Some associations and firms use this method to allocate the profit.

The most common method of profit allocation is the capital invested in the business. partners are paid on the basis of what they invested in the business.

5 0

3 years ago