Answer: D
Explanation:
Total assets changes when an account is written off under the allowance method.
Answer:
c. The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%
The delta of an option is always less than 1 hence a $1 increase in underlying stock can never be equivalent or more than $1 similarly in this case a $2 rise can never have $2 or more than $2 increase in call option price, yes but the growth in option price can be more than 10%
Answer:
a. net worth
Explanation:
For this question, we applied the accounting equation which equals to
Total assets = Total liabilities + stockholder equity
Since the question said that
Total assets - total liabilities = ?
So, by use the above accounting equation
The Total assets - total liabilities = Net worth
Hence, the most appropriate option is a.
Answer:
a. Raw materials used
b. Raw materials beginning inventory
c. Raw materials purchases
Explanation:
Note: The materials activity consists of the purchase and issuance of materials to production
Thus, the items that are classified as a materials activity are :Raw materials used, Raw materials beginning inventory and Raw materials purchases
Answer:
The journal entries required for the redemption as well as the two instances of stock sale is given in details below:
Explanation:
DR CR
11-Oct Treasury stock 5000shares @$5 each 25000
Cash 25000
Being own shares repurchased
1-Nov Cash 31000
Treasury stock 1000 shares issued @$31 each 25000
Paid-in-capital treasury stock 6000
Reissuing treasury stock a higher price
25-Nov Cash 80000
Paid-in-capital treasury stock 6000
Retained earnings 14000
Treasury stock 100000
Reissuing treasury stock at a lower price