I believe the answer would be D. I think
Answer:
B. Both are subtracted from purchases.
Answer:
a.
Cash $1000 Dr
Common stock $1000 Cr
b.
Purchases $500 Dr
Cash $500 Cr
c.
Accounts Receivable $2000 Dr
Sales Revenue $2000 Cr
d.
Cost of Goods Sold $500 Dr
Inventory Account $500 Cr
e.
Cash $2000 Dr
Accounts Receivable $2000 Cr
Explanation:
a.
The cash received as a result of issuing shares is debited as cash is increasing while as the capital is increasing so common stock is credited.
b.
The inventory is purchased for cash so cash is credited and purchases are debited.
c.
The sale of inventory on credit means a debit to the accounts receivable account for the amount of sale and a credit to sales revenue.
d.
When inventory is purchased, we debit the purchases account and credit either cash or accounts payable.
Later on, we transfer the purchases to the inventory amount as it is purchased for the intention of sale. Thus, we credit the purchases account and debit the inventory account.
When a sale is made, we debit the cost of goods sold by the amount of inventory sold and credit the inventory account.
e.
Cash is received so it will be debit and accounts receivable be credited.
<span>Constructing each point in many different ways is usually not a good way to make one's main points. This will only confuse the reader and give them the belief that the writer doesn't really have that much evidence to back up their main idea. Using a number of different points, while only stating them in one way makes it easier for the reader to see all the different pieces of evidence and how they fit together.</span>
Answer:
The correct choice is D)
All securities DO NOT lie on the Securities Market Line (SML) in the capital asset pricing model (CAPM).
Explanation:
The security market line (SML) is a line drawn on a chart that portrays a graphical representation of the capital asset pricing model (CAPM)—which shows various degrees of market risk, for different marketable securities, plotted against the expected return of the entire market at any given time.
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