Answer:
These financial conglomerates provide a range of services, such as investment banking, commercial banking, and financial advising. ⇒ <u>FINANCIAL SERVICES CORPORATIONS. </u>
The institution described is a Financial Services Corporation as they offer many services to customers including all the above services. The firm type depends on the services it offers.
They are owned by members so that members can share funds among themselves. Members who save deposit the funds. These funds are then loaned to members who need the funds. ⇒ <u>CREDIT UNIONS.</u>
This is a Credit Union. Credit Unions were designed to ensure that people had access to low interest loans. They are like banks in that they loan money but they only loan to members. Members own the Union and it is run on a non-profit basis which is why rates are so low.
With the use of advanced investment techniques, these largely unregulated portfolios are invested in securities. The investment objective is to offset potential losses by investing in counterbalancing securities. They are open to only a select class of investors. ⇒ <u>HEDGE FUNDS. </u>
Hedge funds invest in derivatives a lot and are largely unregulated. They use very advanced investment techniques to earn high returns for their exclusive class of investors who pool funds to provide the Hedge fund with capital for investment.
Answer: c. $20,000
Explanation:
The Loss on Realization is monies accrued after assets have been sold off at less than their original value and in Calculating it, the following formula is used,
Loss on realization = Total Capital Balances after payment of liabilities minus - balance
Slotting in the figures therefore we have,
Loss on realization = $40,000 + $70,000 - $80,000
= $30,000 was the total loss on Realization
Seeing as Antonio and Barbara are partners who share income in the ratio of 1:2 we allocate to Barbara as follows,
Barbara = $30,000 * 2/(1+2)
= $20,000
Therefore option C is correct.
Answer:
1. Damaged or obsolete goods are not counted in inventory if they cannot be sold.
2. If these can be sold… Cost should be reduced to Net Realizable Value
Explanation:
The law relating to the valuation of inventory is that ''inventory should be valued at lower of 'Cost' and 'Net Realizable Value'.
Therefore in the case of damaged or obsolete goods, they have to be eliminated from inventory, otherwise it will lead to overvaluation.
However in the case where these can be sold, They have to be valued at lower of 'cost' or 'salable value', implying that 'Cost' should be reduced to 'Net Realizable Value'
