Answer:
The corret answer is b. decrease assets and decrease liabilities.
Explanation:
First entry
Earnings Accrued (- Net Equity)
to various creditors (+ Liabilities)
Since the minutes of the assembly must indicate that they are taken from the profits of previous years, the accumulated profits are reduced.
Second entry
Miscellaneous creditors (- Liabilities)
to Banks (- Active)
The first entry represents transfer from one liability to another liability. Although we think that capital accounts are not liabilities, it is not true, given that the value of debt to shareholders of the value of your company, so we can group everything in the same bag.
When decreeing dividends, what is done is to cover a small part of that company value. That is, when dividends are decreed, they become part of a formalized liability.
The second entry is the cancellation of the liability, through one of the ways to extinguish the obligations: payment.
Answer:
True
Explanation:
You should always treat others the way you want to be treated. If you were the one who could be treated badly, would your actions be different?
<span>B. FALSE yes
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Answer:
Mr Crane's total return on the bond investment was 5.35%
Explanation:
The return on a bond is also known as it yield to maturity (YTM). In order to find a bonds YTM we need to know its present value, future value, coupon payments and number of years. In this case the bond's present value is 1,055 because it was bought at this price, it's future value is 980 because it was sold for 980, its number of years was 5 as it was held for 5 years and its coupon payment was (0.07*1000)=70. Now in order to compute return or ytm we need to put all these values in a financial calculator and compute I
PV= -1055
FV= 980
PMT= 70
N=5
Compute I=5.35
The return on the bond investment was 5.35%
