Question 6

If a mutual fund portfolio earned a return that exceeded the return on the S&P 500 stock index, you may conclude that the fu

Brums [2.3K]

Answer:

The correct answer is letter "A": True.

Explanation:

Risk-adjusted return is a measurement of risk for an investment or portfolio. It involves comparing the return of the investment or portfolio against the benchmark which is the overall performance of the market (typically compared with the S&P 500 index). For that purpose, the approach makes use of indicators such as the alpha, beta or standard deviation. Beta measures how correlated is the movement of a security according to the overall market movement. If a stock exceeds the return of the S&P 500 index, it means it is outperforming the market.

7 0

3 years ago

On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time

Yuri [45]

Answer & Explanation:

Depreciation a/c ...dr

Loss a/c .....dr

Charity a/c .. dr

To machine a/c

Machine amount = Machine cost value (eg, lets suppose = 2,000,000)
Charity amount = fair value of machine at time of donation = 1,4300,000. It is the amount that could have been otherwise received on machine sale, but is given as charity.
Accumulated depreciation is the total depreciation on machine upto date (eg, lets suppose = 5,00,000)
Loss = (Machine cost - accumulated depreciation) - current fair value

Eg: If cost = 2,000,000 & accumulated depreciation = 5,00,000. Machine value should be = 2,000,000 - 5,00,000 = 15,000,000. The fall in value from 15,000,000 to 1,430,000 = 70,000 is loss on machine disposal.

7 0

4 years ago

Bosio Inc.'s perpetual preferred stock sells for $102.50 per share, and it pays an $8.50 annual dividend. If the company were to

RideAnS [48]

Answer:

8.38%

Explanation:

Data provided

Annual dividend = $8.5

Perpetual preferred stock = $102.50

Flotation cost = 4.00%

The computation of cost of preferred stock is shown below:-

Cost of preferred stock = Annual dividend - (Perpetual preferred stock - (Perpetual preferred stock × Flotation cost percentage))

= $8.5 ÷ ($102.50 - ($102.50 × 0.04))

= $8.5 ÷ ($102.50 - $4.1)

= $8.5 ÷ $101.4

= 8.38%

7 0

3 years ago

Notes receivable are typically only used when a company sells large dollar value items (such as cars).

bazaltina [42]

The answer to your question is False

Hope I helped! Plz mark brainliest! Have an awesome day!

3 0

3 years ago

Blue Spruce Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivab

dedylja [7]

Answer:

The adjusting journal entry would be:

Debit: Bad debts expense $5,317

Credit: Allowance for Doubtful Accounts $5,317

Explanation:

Debit: Bad debts expense $5,317

Credit: Allowance for Doubtful Accounts $5,317

Explanation of the entry:

Allowance for doubtful debts at the end of the year = $402,000 × 2% = $8,040

Credit balance at the start = $2,723

Allowance for doubtful accounts = $8,040 - $2,723 = $5,317

The Allowance for Doubtful Accounts presently has a credit balance of $2,723 and allowance for doubtful debt at the end of year is $8,040, you need to enter an additional credit amount of $5,317 into the Allowance for Doubtful Accounts. The other part of this adjusting entry will be a debit of $5,317 to Bad Debts Expense.

6 0

3 years ago