3 years ago

Which of the following statement is not true about derivative contracts?

1 answer:

4 0

Answer:

a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

Explanation:

The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc

So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase

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On December 28, I. M. Greasy, Catering completed $600 of catering services. As of December 31, the customer had not been billed

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Answer: Debit Accounts receivable for $600.

Explanation:

The customer had not been billed so that means that they still owe the company. This would make them an accounts receivable so the adjusting entry will have to debit the Accounts Receivable account for $600 to show that it is increasing.

This amount will be credited to the Accrued revenue account to show that the cash has not yet been received.

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3 years ago

During the current year, Comma Co. had outstanding: 25,000 shares of common stock; 8,000 shares of $20 par, 10% cumulative prefe

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Answer:

The Comma’s basic earnings per share for the current year was $7.36

Explanation:

The computation of the earning per share is shown below

Earning per share = (Net income - preferred dividend) ÷ (Number of shares)

where,

Net income is $200,000

Preference dividend = Number of shares × price per share × rate

= 8,000 shares × $20 × 10%

= $16,000

And, the number of outstanding shares is $25,000

Now put these values to the above formula

So, the value would equal to

= ($200,000 - $16,000) ÷ (25,000 shares)

= $184,000 ÷ 25,000 shares

= $7.36 per share

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The market equilibrium A. occurs only when consumer surplus exceeds producer surplus. B. minimizes the profit of the market beca

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D)
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