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3 years ago

Which of the following statements is not true for T accounts?

1 answer:

5 0

Answer: The statement "d. The excess of the credits of an asset account over the debits is the balance of the account.". is <u>NOT TRUE.</u>

Explanation: The statement "d." is not true because according to the basic equity equation (ASSETS = LIABILITIES + EQUITY).

The excess of the debits of an asset account over the credits is the balance of the account and the excess of the credits of an owner's equity account or a liability account over the debits is the balance of the account.

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It is July 16. A company has a portfolio of stocks worth $100 million. The beta of the portfolio is 1.2. The company would like

Anuta_ua [19.1K]

Answer:

A. The company should take Short position and

140 contract

B. The company should take Long position and 60 contract

Explanation:

Calculation for what position that the company should take

Using this formula

Company position=(Beta of the portfolio*Change in beta of the portfolio) *Portfolio of stocks /Index futures price* Each Contract index times

Let plug in the formula

Company position =(1.2-0.5)*$100 million/2,000*250

Company position=0.7*$100 million/500,000

Company position=$70,000,000/500,000

Company position=140 contract

Therefore the position that the company should take will be SHORT position with 140 contract

B. Calculation for the increase in beta of the portfolio from 1.2 to 1.5 and what position tthr company should take in the futures contract and how many contracts

Using this formula

Company position=Increase in beta of the portfolio *Portfolio of stocks /Index futures price* Each Contract index times

Let plug in the formula

Company position =(1.5-1.2)*$100 million/2,000*250

Company position=0.3*$100 million/500,000

Company position=$30,000,000/500,000

Company position=60 contract

Therefore the company should take Long position and 60 contract

4 0

3 years ago

Melanie has a balance of $1700 on a credit card with an apr of 24.2%, compounded monthly. about how much will she save in intere

slamgirl [31]

She will save about $267.27 ($2160.24 - $1892.97) in interest over the course of a year if she transfers her balance to a credit card with an apr of 10.8%, compounded monthly. This problem can be solved using the compounding interest formula which stated as A = P*(1+i)^n. A is the amount affected by the compounding interest, i is the interest rate, and n is the period of time. You must find the amount using the 24.2% and 10.8% compounding interest and find the difference between them.

4 0

3 years ago

Read 2 more answers

Sarai spends her day checking through boxes of built product to ensure accuracy in production. She makes sure there is enough pr

kondaur [170]

<h2>Quality controller or Quality Checker is the job title of Sarai.</h2>

Explanation:

The role of QC is

To check whether the product is delivered with the expected quality
To check for expectations and complaints from the customer
Look for new policy changes and compare that with the day today production.
Reads blue prints and specification of the product
Monitors operations
Inspects and test the product
Identify re-works and again continue the process of QC
Accept or reject the finished good

6 0

3 years ago

Read 2 more answers

Bramble Corp. has $3960000 of 9% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value

natta225 [31]

Answer: Credit of $217480 to Paid-in Capital in Excess of Par

Explanation:

The following information is given in the question as:

Debit: Bonds payable = $1,250,000

Debit: Premium on bonds payable = $92480

Credit: Common stock = $1,125,000

Credit: Paid in capital in excess of Par = $217480

The above were calculated as:

Common stock = ($1250,000/$1,000) × 30 × 30

= $1250 × 90

= $1,125,000

% Conversion will be:

= $1,250,000 / $3960000 = 0.32

Unamortized bond premium will then be:

= 0.32 × $289,000

= $92,480

Paid in capital in excess of par will be:

= $1,250,000 + $92,480- $1,125,000

= $217,480

Therefore, the answer will be to

"Credit of $217480 to Paid-in Capital in Excess of Par"

4 0

2 years ago

On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truc

Ganezh [65]

Answer:

D.Gain, $5,000.

Explanation:

Truck Value = $48,000

Annual depreciation = ( $48,000 - $8,000) / 8 = $40,000 / 8= $5,000

First year (2013) = $40,000 - $5,000 = $35,000

Second year (2014) = $35,000 - $5,000 = $30,000

Third year (2015)= $30,000 - $5,000 = $25,000

Gain = Sale Value - Truck Value (actual) = $30,000 - $25,000 = $5,000

8 0

2 years ago