The appropriate reflection of the cash transactions between these reporting entities is as follows:
John Hamilton Sauce-it-up Stone Creek Bank
Cash +$500,000 $450,000 -$500,000
-$450,000
Balance $50,000 $450,000 -$500,000
<h3>What is a reporting entity?</h3>
A reporting entity is an economic unit that publishes general purpose financial reports to enable users make and evaluate their decisions about the allocation of scarce resources.
Thus, John Hamilton's cash holding increased by $50,000 net. The cash holding of Sauce-It-Up increased by $450,000 while the cash holding of Stone Creek Bank decreased by $500,000.
Learn more about cash flows of reporting entities at brainly.com/question/24179665
Answer:
Capitalized Expenditures:
2. Added a new wing onto the office building.
5. Had an engine rebuilt in one of their fleet cars.
Explanation:
Capitalization is the process of delaying the full recognition of an expense for the acquisition of a new asset with long-term life so that the costs can be treated as an expense gradually over its useful life through an accounting method known as depreciation or amortization.
The criteria for capitalizing expenditure depend on whether the expenditure is necessary to bring the asset to the condition and location where it can be operated as desired by the management. It must also meet the threshold amount set by management for capitalization. This is because some assets can be used for more than one year and still they are not regarded as capital assets. Example is a stapling machine that costs less than a dollar.
Answer:
d. a and b
Explanation:
A firm’s management analyzes financial statement’s so that:
Evaluating company's performance, by analyzing the financial statements in respect of various areas of financing, investing and operating activities, and then comparing the performance with past records and industries of same category.
Further the firm's management is responsible to take decision of dividend, and return to be paid to equity and various other stakeholders, thus both options a and b are correct.
Correct answer
d. a and b
Answer:
A - If a bond sells at a discount, the yield to maturity is greater than the current yield
Explanation:
Yield to maturity is the expected return if the bond is held till maturity. Current yiled is the return if the bond is sold today. There is an evident relationship between yield to maturity (TYM) and the current yield.
“When a bond's market price is above par, which is known as a premium bond, its current yield and YTM are lower than its coupon rate. Conversely, when a bond sells for less than par, which is known as a discount bond, its current yield and YTM are higher than the coupon rate. Only on occasions when a bond sells for its exact par value are all three rates identical” (Bloomenthal, 2020).
According to the above statements, options C, B and D are eliminated. This leaves option A (If a bond sells at a discount, the yield to maturity is greater than the current yield) as the correct answer. This is true because YTM is calculated on purchase price rather than par value, if the purchase price is less than par value, the YTM will be greater than the current yield.
Answer and Explanation:
The disagreement arise between this economist is due to the differences in the scientific judgements as they disagree due to the various scientific judgements. And, despite their differences, the proposition of two economists should be chosen at random as the tariff and import quotas normally decreased the economic welfare as it always result in deadweight loss and in this both economist should be agree for the same
