Journal entries
Dr Allowance for uncollectible account $41,000
Cr Account Receivable $41,000
Dr Account receivable $3,600
Cr Allowance for uncollectible account $3,600
Dr Cash $3,600
Cr Account receivable $3,600
Answer:
Possible options:
A. 38
B. 40
C. 42
D. There is no arbitrage opportunity.
Answer is B
Explanation:
With the given data, the no-arbitrage futures price should be; 800e(0.025-0.03)*0.50 =798−Since the market price of the futures contract is lower than this price there is an arbitrage opportunity. The futures−contract could be purchased and the index sold.−
Arbitrage profit is 798 - 758 = 40
Answer:
Accounting
Explanation:
Accounting is the process of recording, measuring and presenting the fnancial information of a company. Accounting allows to understand and analyze the financial health of an organization and make the appropiate decisions based on that. Because of this, the answer is that the system that maintains records of a company's operations and then communicates that information to decision makers is referred to as accounting.
The available options are:
a. duress.
b. undue influence.
c. fraud in the inducement.
d. fraud in the execution.
Answer:
fraud in the inducement.
Explanation:
Inducement is a term that describes an action or undertaking that is used by one party to persuades another party into taking actions that he or she would ordinarily not take.
On the other hand, fraud is a form of pretense or intentional misrepresentation purposely created to acquire gains, mostly in terms of finances.
Hence, in this case, considering the available options, the right is fraud in the inducement.