Answer:
B is the correct option.
Explanation:
This principle follows the assumption that a company will remain in business in the future. It means that the business will not have to halt operations or to liquidate the assets in the future. According to this principle, the accountant postpones the recognition of some expenses till a later period, and in that period the company will be in business will be effectively using the assets. It is a very important concept, without this, the company will not be able to prepay the expenses.
Preferred stock is a type of investment security which represent ownership in a corporation and is also a debt instrument of the company.
Explanation:
<u>Preferred stock is a type of investment security which represent ownership in a corporation and is also a debt instrument of the company</u>.It is basically of 5 types
- Cumulative
- Participating
- Convertible
- Callable
- Adjustable-rate
Preferred stock comes in many varieties.
<u>Cumulative preferred stock</u> includes a requirement that past dividends not paid must be paid in future years before any common stock dividends may be paid.
<u> Participatory preferred stock </u>includes the ability to collect dividends with the common stock owners after all preferred dividends have been paid.
<u> </u><u>Convertible preferred stock </u>may be turned in for common stock under certain conditions.
<u> Callable </u>preferred stock, also known as callable preferred stock, comes with the risk that the issuing company may<u> buy back </u> the shares under certain conditions.
Answer:
False. Markets can sometimes fail to reach efficiencies when there are externalities, public goods, monopoly, or serious information asymmetries
Explanation:
Invisible hand (effective allocation of resources in a laissez faire economy) sometimes works because when market function effectively and send correct price as signal of values (to society) to producers.
However, when goods can't be traded on markets (public goods) or its values are not correctly reflected on markets (externalities, information asymmetries) or competition is not ensured (monopoly), markets cannot ensure effective allocation of resources.
Answer:
The requirements are missing, so I looked for similar questions. You should make any necessary adjusting entries on the accounting equation. Since there is not enough room here, I used an excel spreadsheet.
