Under the <u>Uniform Securities Act</u>, the threshold where a State-registered adviser is considered to have taken custody of client funds if it charges prepaid advisory fees, is: <u>$500, 6 months or more in advance of rendering services.</u>
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If an advisor either physically possesses or has the legal right to take possession of money or securities belonging to its clients, then it has custody. The term "custody" has been expanded by the rule's revisions to cover situations in which an adviser's related person holds custody of client assets in conjunction with the adviser's advisory services. If an investment adviser's connected broker-dealer holds client assets as a qualified custodian in conjunction with advising services, the investment adviser would be deemed to have custody of those assets.
Consultants may be considered to have taken ownership of customer funds as defined by NASAA when a nationally registered investment manager acknowledges $500 (or more) in advanced consulting fees, 6 months prior to the anticipation of performing services. While the Advisers (Investment) Act of 1940 did not apply to government-registered advisors, it is worth noting that it may have set the maximum at $1,200 among Federal Covered advisors.
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Answer:
make eye contact
Explanation:
because when you make eye contact then you can tell them that they can go
Answer:
b) income statement as a $2,320,000 cumulative effect of accounting change
Explanation:
Base on the scenario been described in the question, The change in inventory steps to FIFO from LIFO which made an increase in Inventory should be recorded in the retained earnings statement as a $2,320,000 addition to the beginning balance. Option b is the answer
Answer:
Jerilyn will have a gain of $17,000 from sale of her interest
Explanation:
Jerilyn will recognize a gain on the sale of her interest and the gain amount would be $17,000 which is computed from the difference among her basis in APJ of $75,000 and sells her interest for $92,000 ($92,000 - $75,000).
She recognizes the gain as she receives the only cash for selling her interest and the amount is more than her basis in her partnership interest and also APJ has no hot assets, therefore, the gain will be recognized as capital.
Answer: e) an ethical dilemma.
Explanation:An Ethical dilemma is a situation where a person is faced with two opposing options where one is a normal and appropriate thing to do while the other is concerned with ones Relationships.
Most managers are faced with Ethical dilemmas on a daily basis as they have to choose between Maintaining their friendships or strictly adhering to Ethical obligations and standards. Bob, the owner of Orthopedic Supply, is faced with an Ethical dilemma between sparing his friends and trusted friend and following Ethical standards.
