Answer:
1. Journalize the transactions for Rose's investment in Sprouts' stock:
<u>March 1 2018</u>
Dr Trading securities - Sprouts's stock 12,000
Cr Cash 12,000
(to record the purchase of Sprout's stock)
<u>October 1 2018</u>
Dr Cash 350
Cr Dividend Income 350
(to record the dividend receipt from Sprout's stock)
<u>October 31 2018</u>
Dr Cash 12,250
Cr Gain on disposal of short-term investment 250
Cr Trading securities - Sprouts's stock 12,000
(to record disposal of Sprout's stock)
2. Net effect of the investment on Rose's net income for the year ended December 31, 2018: $600.
Explanation:
1. As this investment is short-term investment and is held for sell, fair value methodology should be applied to record this transaction. The detailed journal entries are as in answer part.
2. As fair value methodology is applied, the net income of Rose will include: dividend income + gain on disposal of short-term investment = $350 + $250 = $600.
Answer:
Letter b is correct. Misappropriate the incoming check related to returned goods and deposit the check in a bank account other than the company's.
Explanation:
A pay-and-return scheme is a scheme where an employee intentionally defrays a payment amount from a vendor, increasing that expense and reimbursing the excess amount of that payment. It can also be performed on a dual payment scheme to a vendor, and after the employee reports the error to the vendor and gets a check back, he can refund the amount.
Answer: Recession; Depression; Peak ; Trough
Explanation:
The business cycle is the short-term movement of the economy as it goes in and out of recession.
A recession is the significant decline in the national output. Die to recession, there are less consumption by consumers and this negatively affects the national output.
A depression is a lengthy and deep decline in the output of an economy. When there's a long time contractions in economic activities, depression has taken place.
A peak is the highest point of output before the start of a recession. It is when growth and reached its maximum rate in an economy.
Trough is the lowest point of output when there is a recession. It is the lowest point when there's a decline in economic activities.
Answer:
option C
Explanation:
In simple words, refers t the written statement that depicts the availability of funds in hand for a firm and hope they are gonna use it in future. Every organisation makes a budget so that they can use their resources in the most efficient way.
Budgets are made for the upcoming period but are based on the predictions made by the management and on the basis of past experiences. Thus, budgets should be made flexible and should be distributed to all the stakeholders as the real variable might diverge from the assumed variables. However budget should be in a realistic approach as they work as a major statement for evaluation.
Answer:
B
Explanation:
Insurance verification cannot be performed until the patient arrives for services
