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ki77a [65]
3 years ago
7

In a statement of cash flows using the indirect method, an increase in available-for-sale securities due to an increase in their

fair value should be reported as: a) An investing Activityb) Not Reportedc) An addition to net income in determining cash flows from operating activities.d) A deduction from net income in determining cash flows from operating activities.
Business
1 answer:
damaskus [11]3 years ago
4 0

Answer:

The correct answer is d) A deduction from net income in determining cash flows from operating activities.

Explanation:

To get net cash flow using the indirect method we must make adjustments to the net income.

It depends on the account if it is added or subtracted to net income.

In this case, an increase in available-for-sale securities due to an increase in their fair value should be reported as a deduction from net income.

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When an organization evaluates people based on the economic or productive potential of their knowledge, experience, and actions
Kryger [21]

Answer:

Human Capital.

Explanation:

When an organization evaluates people based on the economic or productive potential of their knowledge, experience, and actions they are viewing them as human capital which is termed as an intangible asset for any organization but not present on an organization's balance sheet. Human capital is the economic value of the employees skills, expertise and experience which comprises of their training, education, health, intelligence, punctuality, values, ethics, corporate citizenship and loyalty etc.

5 0
4 years ago
Tricia had $100,000 in mortgage debt forgiven through a short sale on her principal residence on her Federal income tax return.
lidiya [134]

Answer:

d) $100,000

Explanation:

In answer to this question, Tricia must include $100000 as the amount of the discharge of indebtedness from the disposition of her principal residence when when she is completing her Schedule CA for the year 2019.

We have option d, 100000 dollars as the answer because the ​amount of debt forgiven is known to be taxable.

8 0
3 years ago
You are an accountant working for Hotel Co. Your supervisor has asked you to research what amount of revenue Hotel Co. should re
Sonja [21]

Answer:

Hotel Co. should record the gross transaction fee and not only the net amount it receives from Expedia.

Explanation:

The revenue that Hotel Co. should account for in its books includes the gross transaction fee, while the collection expense that is withheld by Expedia is recorded as an expense or cost.  This method ensures that the revenue due to the Hotel Co. is actually accounted for while the collection expense by Expedia is also separately accounted for.  This will enable comparison with another hotel that does not use Expedia for its collection, for example.

5 0
3 years ago
The current rates for an 80/20 mortgages are 4.15% for the first mortgages and 9.75% for the second mortgage. On a $200,000 30 y
olganol [36]

Answer: The actual rate of the mortgage is 5.27%.

Since we're taking two mortgages for a total of $200,000 for 30 years, we can find the actual rate of the mortgage by finding the weighted average of the two rates. The weights in this case will be the proportion of loan taken at each rate

We have

Rates       Weights      Rates * Weights

4.15            0.80     4.15 * 0.80 = 3.32

9.75             0.20    9.75 * 0.20 = 1.95      

Total                                             5.27%  

5 0
3 years ago
define a stock market bubble, describe what happens after a bubble, and explain how the law of supply and demand creates both bu
Stells [14]

Answer

<u>A bubble is a phenomena in investing that occurs when investors increase their demand in assets so much that they cause the price to move to a value beyond accurate reflection of its actual worthiness</u>. When a bubble happens, <u>the prices of stock will fall rapidly</u>.When there is increase in the share price of stock rapidly caused by individual-perpetuating, the share value can rise beyond asset value making investor to withdraw their money faster because <u>supply will exceed demand and cause share price to fall.</u>

An increase demand on assets by investors will make the price to increase beyond rational economic value. The real worth of the stock will now be determined by firm’s performance. Investing in bubble can appear to last forever, but because they are formed by self-perpetuated reasons, they eventually fall and the money that was invested into them is lost. In such cases, investors would run to withdraw their money and avoid the loss of fall in share prices.

8 0
3 years ago
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