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boyakko [2]
3 years ago
15

Nancy checks her margin account and notices she has an SMA balance in her account. A 10% stock dividend was declared this mornin

g on one of the companies she had purchased on margin. She asks her RR how this will affect her SMA balance. How should the RR respond?
Business
2 answers:
baherus [9]3 years ago
7 0

The RR should respond that her SMA balance will not include the dividend. When you have a margin account, any dividends declared have no effect on the SMA account until the margin loan is paid back. A margin account is essentially a loan from your brokerage firm. That loan must be paid off first before you collect any balances.

hjlf3 years ago
3 0

Answer:

Dividend declare has no impact on the SMA. RR would respond the following way.

Explanation:

SMA is known as “Special Memorandum Account”. It is simply a line of credit, neither cash nor equity. It is created with the market value of the securities increase in the value. The purpose of SMA is to maintain the buying power that is provided by unrealized gains towards the subsequent purchases. SMA is an appropriate way to maintain stable account value and minimize unnecessary accounts funding.

SMA increases with the increase in the value of the security, but does not decrease when the security falls in the value.

SMA is increased by the transactions such as cash deposits, interest income or dividend received or security sales. Dividend declared by the company creates a positive sentiments in the minds of investors. However, it will not create any impact on the SMA account, until it is actually received.

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Luke was interested in developing a communication budget for the holistic vitamin shop he will be opening in 30 days. He is plan
PolarNik [594]

Answer:

Objective-and-task method.

Explanation:

With the available information, objective-and-task method would be best for Luke to pursue to develop his communication program. Objective and task method is a marketing strategy that focuses on allocating an amount of money for its marketing or advertisement budget based on peculiarities and set objectives, instead of choosing an arbitrary amount of money.

The objective-and-task method is the most logical budget method, as an organization sets its promotional budget on what it wishes to achieve specifically, meaning it's goal oriented and not based on sales revenues.

7 0
3 years ago
Companies generate income from their "regular" operations and from other sources like interest earned on the securities they hol
SCORPION-xisa [38]

Answer:

$4,250

Explanation:

The computation of the operating income or EBIT is shown below:

Earning before interest and taxes = Sales reported - operating cost  other than depreciation - depreciation expense

= $12,500 - $7,250 - $1,000

= $4,250

We simply deduct the operating cost and the depreciation expense from the sales reported to arrive the earning before interest and taxes

All other information which is given in the question is not relevant. hence, ignored it

6 0
3 years ago
What refers to a thorough analysis of the circulation procedures, outlets of distribution, readers, and other factors by compani
Elodia [21]

Answer:

circulation audit

Explanation:

A circulation audit is a term that describes a distinct form of audit which validates publisher's real printing and distribution, and at the same time, verifies publisher's books, records, and documents relating to circulation.

In other words, it is considered as a standardized, authoritative statement of a publication's printing, distribution, and readership.

Hence, CIRCULATION AUDIT refers to a thorough analysis of the circulation procedures, outlets of distribution, readers, and other factors by companies such as ABC

4 0
3 years ago
Match each word with the phrase that best defines it.
Bezzdna [24]

Answer:

lease: a legal agreement allowing a person to use a car or property for a payment installment.

mortgage: a legal agreement to borrow money for the purchase of home equity

Explanation:

6 0
3 years ago
Fes Company is making adjusting journal entries for the year ended December 31, 2018. In developing information for the adjustin
anyanavicka [17]

Answer:

Fes Company

1. Amount to report on the 2018 income statement as Insurance Expense

= $3,400

b. Amount to report on the December 31, 2018 balance sheet as Prepaid Insurance

= $3,400

2. Amount to report on the income statement as Supplies Expense

= $72,600

b. Amount to report on the balance sheet as Supplies = $8,400

3. The accounting equation effects of the adjustment for:

a) Insurance

Assets (Prepaid Insurance -$3,400) = Liabilities + Equity (Retained Earnings -$3,400 as Insurance Expense)

b) Supplies

Assets (Supplies - $4,600) = Liabilities + Equity (Retained Earnings -$4,600 in addition to Supplies Expense)

Explanation:

Adjusting Journal Entries:

a.

Debit Insurance Expense $3,400

Credit Prepaid Insurance $3,400

To adjust for expense for the year.

b.

Debit Supplies Expense $4,600

Credit Supplies $4,600

To adjust for used supplies.

Workings:

Supplies

Dec. 31, 2018 Balance   $13,000

Supplies on hand              8,400

Supplies used                 $4,600

Dec. 31 Supplies Expense Balance   $68,000

Supplies used                                       $4,600

Total supplies expense = $72,600

4 0
3 years ago
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