All categories

2 years ago

Which of the following is true of source documents in an accounting information system?

Business

1 answer:

MA_775_DIABLO [31]2 years ago

3 0

Answer:

a. Source documents provide control and reliability in an accounting information system.

Explanation:

The source documents are the documents that support all types of business transaction. It can be in terms of bank statement, purchase order, sales order, supplier invoices, etc. It can also known as vouchers

With the help of the source documents the accounting system provides the reliable and controlling of transactions

This is the first step to verify the transactions after that recording, posting of transactions could be done.

You might be interested in

A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.5 percent and a standard devi

mario62 [17]

Answer: Step 1) Find share of market in the Portfolio

(11.5-3.5)x+3.5=6.5

8x=3

x=3/8

x=0.375

=37.5%

SD of market portfolio= 0.375x+0=9.5

x=9.5/0.375

=25.33%

correl = cov / (std 1 * std2)

0.4=COV/0.2533*0.545

COV= 0.2533*0.545*0.4=0.05

cov of 2 assets = b1 * b2 * variance of market

0.05=B1*1*0.2533^2

B of security=0.0032

Capm Model

3.5+0.0032(11.5-3.5)=3.5256% expected return

Explanation:

Step 1) Find the share of market in the portfolio in order to find market SD

Step 2) Find Covariance betweens security and market by using both SDS and correlation

Step 3) Find Beta of Security using Co variance

Step 4) Use the Beta in CAPM model in order to find expected return

4 0

2 years ago

True or false: if society wishes to reduce overall pollution by a certain amount, it is efficient to have firms with highest pro

AveGali [126]

TRUE

If the society wishes to reduce overall pollution by certain amount, it is efficient to have firms with highest profit bearing the largest burden of reducing pollution and firms with lowest profit bearing the least burden. This is because it will not lead to overall burden on the small firms. If large firms and small firms were to reduce the pollution burden on same rate then it will be very costly for the smaller firms to bear that and it will be a burden of cost on smaller firms.

3 0

3 years ago

f covered interest arbitrage opportunities do not exist, Group of answer choices interest rate parity holds. interest rate parit

kodGreya [7K]

Answer: interest rate parity holds

Explanation:

Covered interest arbitrage is a trading strategy that is used by an investor when the person whereby takes advantage of the differences in interest rate between two nations and invest in the currency that brings higher value.

If covered interest arbitrage opportunities do not exist, it simply means that interest rate parity holds.

7 0

3 years ago

Your company expects profits to be close to $4,000,000. The board has instructed you to increase retained earnings by approximat

artcher [175]

The amount of dividends and dividend price per share comes out to be $2,000,000 and $20 when the number of shares is assumed to be 100,000.

<h3>What are dividends?</h3>

Dividends are the amounts allocated to share investors by the company up to their shareholdings. It is the amount that is first provided to preferred stock investors.

Given values:

Expected profits: $4,00,000

Increase in Retained earnings: $2,000,000

The number of shares is assumed to be 100,000.

Computation of dividend per share;

$\rm\ Dividend \rm\ per \rm\ share=\frac{\rm\ Expected Profits-\rm\ Increase \rm\ in \rm\ Retained \rm\ Earnings}{Number of shares} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$4,00,000-\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\$20$

Therefore, the amount of the dividend is $2,000,000 at a share price of $20 to be paid this year.

Learn more about the dividends in the related link:

brainly.com/question/14171490

#SPJ1

6 0

2 years ago

How much cash will an investor have to pay on a property where the bank is providing a loan at 75% LTV, on a purchase price of $

daser333 [38]

Answer:$1,837,500

Explanation:The LTV (Loan-to-value) ratio refers to the value signifying the difference between what is owed on a mortgage and the original mortgage value.

LTV = 75%

LTV = 0.75

Purchase price = $5,550,000

Bank will provide a loan to fund the mortgage at 75% LTV

Therefore,

Mortgage at 75% LTV equals 0.75*$5,550,000 = $4,162,500.

Therefore, The investor will pay the balance on the purchase price and the closing balance.

Closing costs = $450,000

Balance on purchase price equals

$5,550,000 - $4,162,500 = $1,387,500

Total= balance + closing costs

Total = $1,387,500 + $450,000=$1,837,500

5 0

3 years ago

Which of the following is true of source documents in an accounting information​ system?

Which of the following is true of source documents in an accounting information system?