Answer:
The answer is D.
Explanation:
To increase asset and expense, you debit while credit decreases it.
To increase, liabity, revenue(income), equity, you credit while debit decreases it.
An insurance that has been prepaid is an asset because the benefit has not been fully utilised.
Samson and Sons has paid for an insurance that will expire December at the beginning of July.
$1,200 for 6 months.
Samson and Sons needs to recognize this as the service is being enjoyed monthly.
Therefore, insurance expense every month will increase by $1,200/6
$200
Remember that expense increase by debit and asset(Prepaid Insurance) decrease by credit.
So we have:
Debit insurance expense $200; Credit prepaid insurance $200
Answer:
certificate of deposit
Explanation:
A certificate of deposit (CD) is a financial instrument sold by banks
The bank gives this CD to Gwen. She cannot withdraw the cash until July 1, 2023
The certificate of deposit are risk-free investment. The difference with savings account is that a certificate of deposit has a fixed term and fixed interest rate and it is create with the idea of holding the title until maturity. Not doing so, may inccur in penalties so a portion of the interest will be negate.
As this is a financial instrument, the bank issued a title to the investor to recognize his investment.
Answer:
1.41 Approx
Explanation:
The computation of the beta for the stock T is shown below:
Beta of portfolio = Respective betas × Respective investment weights
1.30 = (0.14 × 0.81) + (0.5 × 1.36) + (0.36 × beta of the Stock T)
1.30 =0.7934 + (0.36 × beta of the Stock T)
beta of the Stock T = (1.3 - 0.7934) ÷ 0.36
= 1.41 Approx
We simply multiplied the beta of each stock with its investment weights order to calculate the beta of the stock T as portfolio beta is given
Answer:
Its action would be optimal given an ordering cost of $28.31 per order
Explanation:
According to the given data we have the following:
economic order quantity, EOQ= 55 units
annual demand, D=235
holding cost per one unit per year, H=40%×$11=$4.4
ordering cost, S=?
In order to calculate the ordering cost we would have to use the following formula:
EOQ=√(<u>2×D×S)</u>
(H)
Hence, S=<u>(EOQ)∧2×H</u>
2×D
S=<u>(55)∧2×4.4</u>
2×235
S=<u>13,310</u>
470
S=$28.31
Its action would be optimal given an ordering cost of $28.31 per order
Answer:
The percentage loss will be "-9.08%". The further explanation is given below.
Explanation:
The given values are:
Invested amount
= 20,000
Price of purchase
= $66
Total number of shares
= 500
The borrowed amount will be:
= 
= 
When the price increase to 69.63, the gain will be:
= 
= 
($)
The total gain will be:
= 
= 
Increase in percentage will be:
= 
= 
%
Whereas if price stays quite well at $66, there is really no increase, so the percentage growth would be 0%.
If the price declines toward a loss of 62,37 per share:
= 
= 
Now,
The total loss will be:
= 
= 
The percentage loss will be:
= 
= 
(%)
