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forsale [732]
3 years ago
10

An investment adviser that manages a portfolio for a client has not taken custody. The customer informs the adviser that he will

be traveling overseas for 1 year on a round-the-world cruise and gives the adviser authority to write checks on his personal bank account to pay the quarterly custodian bank fees. Under the provisions of the Investment Advisers Act of 1940, the adviser:
Business
1 answer:
RoseWind [281]3 years ago
8 0

Answer: C. has taken custody of customer funds and must comply with the additional requirements of the custody rule

Explanation:

The options for the question are:

A. can follow the customer's instructions without additional action taken, since this is a service to the customer

B. has not taken custody of client funds, unless the custodian bank and the investment adviser are under common ownership

C. has taken custody of customer funds and must comply with the additional requirements of the custody rule

D. has a conflict of interest that must be disclosed in writing to the customer

The Investment Advisers Act is a law which was enacted in order to regulate the investment advisers. It requires that firms that receive compensation when they advise others about their securities investments will have to register with Securities Exchange Commission and also abide with the regulations which are in place to protect the investors.

In the Act, it was said that an investment adviser has had a custody of the client assets, and should therefore comply and abide with the rule since the adviser is in possession of the client funds. Therefore, option C is the correct answer.

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Murray Plc owns​ 60% of the equity share capital of Federer Ltd. For the year ended 31 December 20X6 Federer reported profit aft
KengaRu [80]

Answer:

$76,640

Explanation:

The solution of profit attributable to the​ non-controlling interest is provided below:-

Percentage of equity share capital = 100% - Equity share capital percentage

= 100% - 60%

= 40%

As we know that if profit percentage is 25% on cost so sale percentage is equals to 20%

So,

Profit on sale value = Sale percentage × Sale value

= 20% × $60,000

= $8,400

now,

Total adjust profit = Profit after tax - Unrealized profit on unsold stock

= $200,000 - $8,400

= $191,600

and, after the total adjust profit finally

Profit attributable to the​ non-controlling interest = Total adjust profit × Percentage of equity share capital

= $191,600 × 40%

= $76,640

3 0
3 years ago
The Intramural Sports Club reports sales revenue of $892,000. Inventory at both the beginning and end of the year totals $160,00
hammer [34]

Answer:

$524,000

Explanation:

Gross profit = revenue - costs of goods sold

For the Intramural Sports Club, revenue = $892,000.

Finding the cost of goods sold  COGS

Inventory turnover = COGS/ average inventory

inventory turnover=4.6

Average inventory = beginning plus closing inventory /2

in this case, average inventory =$160,000/2

=$80,000

Therefor, 4.6 = COGS/ $80,000

COGS = $80,000 x 4.6

COGS =$368,000

Gross profits= $892,000- $368,000

Gross profit =$524,000

6 0
3 years ago
Cameron is the sales director for his Northeast company’s region. This is an example of
den301095 [7]

<u>Answer:</u>

<em>Cameron is the sales director for his Northeast company's region. He's a rehional sales director.</em>

<u>Explanation:</u>

A Regional Sales Director is in charge of the closeout of a business' items or administrations in a predetermined district or geological region. The provincial project supervisor gives progressing backing to disseminate and create to item or administration.

Furthermore, the territorial project lead deals with a business group in the predefined zone. Subsequently, Cameron is the local deals Director.

8 0
4 years ago
Why was bank of america industry successful at one point
777dan777 [17]

Answer:

Bank of America (NYSE:BAC) has had its fair share of missteps over the past decade, but it's also had successes. Topping the list for the latter is the progress it's made in mobile banking, which has enabled the bank to slash operating expenses in its consumer banking segment.

You can get a sense for Bank of America's success in this regard by looking at the number of people who use its mobile application. In the most recent quarter, the bank boasted 19.6 million active mobile users. That's five times the number it had in 2009. To put this in perspective, Bank of America has 60 million total clients within 45 million households.

The impact on Bank of America's transaction mix has been dramatic. Mobile check deposits are up by a factor of 10 since 2012, and now account for 16% of all deposit transactions at the North Carolina-based bank. If you also factor in ATM transactions, two-thirds of Bank of America's deposit transactions are now automated. That compares to only 35% in 2009.

Explanation:

7 0
3 years ago
If you carry over a balance in your credit card from one billing period to the next when will interest charged begin on a new pu
fiasKO [112]

Answer:

Think answer will be 'c'..

6 0
3 years ago
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