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3 years ago

3. What role did CDS play in the financial crisis?

1 answer:

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Just like an insurance policy, a CDS allows purchasers to buy protection against an unlikely event that may affect the investment. ... During the financial crisis of 2008, the value of CDS was hit hard, and it dropped to $26.3 trillion by 2010 and $25.5 trillion in 2012.

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Javier Computer Services began operations in July 2019. At the end of the month, the company prepares monthly financial statemen

gavmur [86]

Answer:

wages expense 1,300 debit

wages payable 1,300 credit

--------------------------------

interest expense 200 debit

interest payable 200 credit

--------------------------------

account receivable 2,400 debit

service revenue 2,400 credit

----------------------------------

Explanation:

we recognize the wages expense for the current period and the liability that arise from that.

interest: principal x rate x time

time and rate should be in the same metric so we express the time in portion of a year.

From July 1st to July 31th a month has past so 1/12 of a year:

20,000 x 12% x 1/12 = 200

this will be the accrued interest for the period

we must record service revenue. As it is not collected it goes int oaccount receivable

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3 years ago

Q 6.41: Which of the following companies is most likely to have lost sales due to an inventory shortage? Company 1 has an invent

V125BC [204]

Answer:

Company 1 is most likely to have lost sales due to an inventory shortage.

Explanation:

Inventory turnover is the ratio that how many time a business has sold or replaced the inventory during a given period. A business is considered more profitable if it has high inventory turnover.

Company with highest Inventory turnover may lost sales due to inventory shortage. Company 1 1 has the highest inventory turnover of 46.3. Which may lead to to the shortage of stock because the inventory in stock is more likely to sold earlier than other companies. High inventory turnover will lead to low inventory days.

6 0

3 years ago

The following transactions occurred during November: Borrowed $2,700 from the bank in and signed a promissory note. Received $52

Anarel [89]

Answer: $5,000

Explanation:

Going by the Accrual principle in accounting, revenue is only to be recognized when earned. This means that revenue from services performed in October and revenue from services to be performed in December, will not be part of revenue reported in November.

Revenue to be recorded in November income statement = Billed $3,950 to customers for services performed on account in November + Received $1,050 cash for services performed during November

= 3,950 + 1,050

= $5,000

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3 years ago

On March 15, American Eagle declares a quarterly cash dividend of $0.075 per share payable on April 13 to all stockholders of re

slava [35]

Answer:

The Journal entries are as follows:

(i) On March 15,

Dividend [0.075×220,000,000] A/c Dr. $16,500,000

To dividend payable $16,500,000

(To record the declaration of cash dividends)

(ii) On March 30,

No Journal entry required

(iii) On April 13,

Dividend payable A/c Dr. $16,500,000

To cash $16,500,000

(To record the payment of cash dividends for its 220 million shares)

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3 years ago

The statement of cash flows presents:

Elena-2011 [213]

Answer:

Option C is correct.

Explanation:

The statement of cash flow presents us the information about the cash, where the cash was invested including how much cash we have earned by investing in projects, how much cash the operations has created and how much cash has been created from the financing activities. This statement tells us about the origin of the cash and where the company is spending it.

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4 years ago