Answer:
<u>A. an abnormal price change immediately after the announcement</u>
Explanation:
- A Quarterly earnings report that is made for the public companies to report their earnings such as net income, EPS and continued operations, understanding of these reports provide the investors with the sales, expenses and other investments.
- High earnings lead to high prices. As these processes may lead to potential fluctuations and manipulations variety of these changes in prices can be easily brought about by the changes in the market conditions.
- Thus prices may tend to bounce back and decline immediately after the announcements in the stocks.
Answer:
contract
Explanation:
A contract is a form of enforceable agreement between two parties that are legally binding. Both parties in the contract have to do the responsibilities/promises written there and any breach for the agreement can result as enforcement from the court. While a verbal contract is possible in some law, it's really hard to be proven so it's better to have a written contract instead.
Not everything can be put into a contract. If the contract against public policy, the contract will be illegal and an agreement is written there will be invalid.
All of the above are regulated :)
Answer:
1. $550,000
Explanation:
1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.
Hence, the bonds are issued at the face value that is $550,000.
2. The Journal entries are as follows:
(i) On January 1,
Cash A/c Dr. $550,000
To bonds payable $550,000
(To record the bond issuance)
(ii) On December 31,
Interest Expense A/c Dr. $66,000
To cash A/c $66,000
(To record the first interest payment on December 31 assuming no interest has been accrued earlier in the year)
Workings:
Interest expense = $550,000 × 12%
= $66,000