Answer: D. I, II, and III
Explanation:
If expecting a price deduction, you can buy Put options. These give you the right to sell an underlying stock at a certain price regardless of what the price in the market is. If you purchased this, you can sell your stock above market value if it does go down.
You can sell write call options for a fee where you give the buyer the right to buy your shares at a certain price in future. This is only valuable if prices rise so as you are expecting prices to fall, you could make a premium on the call option contract fees if prices fall without having to sell off your shares.
Hedging with puts is better than short calls if you are expecting a major stock price decline as the opportunity for profit is higher.
Answer:
C. Statute of limitations.
Explanation:
Statute of limitations are laws which states the time limit of when legal proceedings must be initiated between concerned parties from the date in which alleged offence was perpetrated.
In statue of limitations, the time limit for somebody is wronged to initiate legal action is not fixed in all jurisdiction. It means that depending on the nature of the alleged offense under statute of limitation, time allowed to institute legal actions varies.
Example of statue of limitation is that for certain states, the time limit to initiate legal case say on fraud is two years. It means that one must bring up the case in a court of law within the stipulated two years period. Once the two year grace elapse, one can no longer sue for fraud in the court of law.
Although there is no time limit for certain offence like murder case, sex offence with minor etc.
As in the case above, the judge threw away the case because according to the law of statute of limitation, a party that is wronged can only sue the wrong doer within the stipulated time as spelt out within the jurisdiction where the alleged offence was committed.
Answer:
$604,800
Explanation:
Applied manufacturing overhead is the manufacturing overhead that has been applied to production in a period.
it is calculated with the formula "budgeted overhead rate * actual labor hr"
Budgeted manufacturing overhead = $562,800
Budgeted Direct labor hours = 20,100
Budgeted Overhead rate = 562800/20100 =$28/hr
Actual manufacturing overhead = $543,705
Actual direct labor hours = 21600
Amount of manufacturing overhead applied = predetermined overhead rate * actual hr =28*21600
=$604,800
Answer:
Dr. Cr.
July 19
Cash $792
Discount expense $8
Account Receivable $800
Explanation:
The term 1/15, n/30 mean there is a discount of 1% is available on the sales value, if payment is made within 15 days of sale with credit term of 30 days.
The sale of $900 was made on July 10 and discount period is until July 25.
On July 12 goods amounting $100 was returned and now the amount due from the customer is $800 ( $900 - $100 ).
The payment made on July 19 is actually in the discount period and it is eligible for the discount as it is made before July 25.
Discount = Amount due x Discount rate
Discount = $800 x 1% = $8
$792 Cash received against the sale made on July 10 and discount $8 is expensed. Total of $800 is credited from the account receivable account to eliminate it.
