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3 years ago

Stock prices follow a random walk with a trend because:__________

Business

1 answer:

Bumek [7]3 years ago

6 0

Answer:

Stock prices follow a random walk with a trend because:__________

d. stock prices are based on both future profits and expectations about future profits and gradually rise over time.

Explanation:

The random walk theory of the stock price movement states that there is no observable pattern or trend to the movement of a stock price. It is, therefore, impossible to use the past movement or trend of a stock price to predict its future movement. This means that the wise investor should invest in the market portfolio to reflect more closely the movement of stock prices in the market instead of investing in a single stock or market security.

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The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 201

zvonat [6]

The correct answer is A) $392,000.

The amount should be reported in its 2015 income statement as the current portion of its provision for income taxes is $392,000.

To get this number you have to do the correct multiplication. You take the taxable income and multiply it by the enacted tax rate of the year 2015. So it is $1,400,000 x .28 (that is the 28%. The resulted number is $392,000.

This is how the corporation has to prepare the reconciliation for its first operation year.

The other options of the question were B) 560,000. C) 504,000. D) 720,000.

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4 years ago

A self-insurance activity that is accounted for in an Internal Service Fund pays $365,000 in claims during the year. Because the

Alenkinab [10]

Answer:

A. An operating expense.

Explanation:

Since in the question it is mentioned that the self insurance activity i.e. accounted for an internal service fund that paid the amount of $365,000. Also as we know that the internal service fund is a proprietary fund so the claim should be reported as an operating expenses in the revenues, expenses and change in net asset statement

Therefore the correct option is a.

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3 years ago

Question 10 1 / 1 pts The shareholders' equity of Diakovsky Company at the beginning and end of 20X6 totaled $16,000 and $21,000

Nookie1986 [14]

Answer:

The total assets amounts to $38,000 at the end of the year 20X6

Explanation:

Computing the beginning liabilities of the company by using the accounting equation as:

Assets = Liabilities + Shareholders' Equity

where

Beginning assets amounts to $25,000

Beginning shareholders' equity amounts to $16,000

Putting the values above:

$25,000 = Liabilities + $16,000

$25,000 - $16,000 = Liabilities

Liabilities = $9,000

So, beginning liability amounts to $9,000

Now, computing the ending assets by using the accounting equation as:

Assets = Liabilities + Shareholders' Equity

where

Ending shareholders' equity amounts to $21,000

Ending liabilities amounts to $17,000 as ending liability increase by $8,000. So, $8,000 + $9,000 which equals to $17,000

Putting the values above:

= $17,000 + $21,000

= $38,000

Therefore, ending assets amounts to $38,000

4 0

4 years ago

After Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy.

ASHA 777 [7]

Answer: should be protected because their account is fully insured by the FDIC.

Explanation:

From the question, we are informed that Xavier and Alyssa kept about $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy but that the bank FDIC member bank.

Based on the above scenario, they'll be protected because their account is fully insured by the FDIC. It should be noted that the Federal Deposit Insurance Corporation helps in insuring several bank deposits and in case of bank failure, the depositors will be paid or the accounts of the bank will have to be transferred to some other bank.

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3 years ago

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there

Llana [10]

<span>If the actual rate is higher than the natural rate, the economy is in a recession (also know as a slump).

... by definition there is a recession.</span>

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3 years ago