Answer: Share holders Equity = equity stock + Fair Value of Trading securities
Explanation:
Trading Securities are securities purchased by a business with the sole purpose of gaining profits,Trading Securities are purchased when the company speculates short term profits.
Trading Securities are recognized as current Assets in the statement of financial position. They are recognised at their Fair Value and they will be offset in the Shareholders equity as Proceeds from sale of short term investments.
Shareholders Equity will include the Fair Value (Balances) of Trading Assets. When Fair Value changes, The change in the Fair Value will be recognised in the income statement as Unrealized Gains on short term investments.
Answer:
The only two jobs that deal with natural resources are:
- oil rig driller
- wind turbine engineer
Oil rig drillers work in the ocean completely surrounded by water, or maybe other oil rigs but they are never too close.
Wind turbine engineers work on open spaces, surrounded by very few things other than wind turbines. Wind turbines are HUGE and they are usually located on very isolated places.
Answer:
b. debit Cash and Discount on Bonds Payable, credit Bonds Payable.
Explanation:
Since the contract rate is less than the market rate, the bond is issued at a discount. And, the journal entry is shown below:
Cash A/c Dr XXXXX
Discount on bonds payable A/c XXXXX
To Bonds payable A/c XXXXX
(Being bond is issued at a discount is recorded)
When the bond is issued at a discount, we debited the cash account and the discount on bonds payable and credited the bonds payable account
Answer:
Incremental approach.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on a periodic basis.
Basically, the first step of the budgeting process is to prepare a list of each type of income and expense that will be integrated or infused into the budget.
This ultimately implies that, before preparing a budget, it is of utmost importance to know total income (inflows) and expenses (outflows).
The final step to be made by the management of an organization in the financial decision-making process is to make necessary adjustments to the budget.
In Business management, an incremental approach is a budgeting approach which is often used when the relationship between inputs and outputs for a particular project are weak or nonexistent. Thus, the incremental approach involves selecting the actual performance or current (previous) year's budget as a base while adding incremental amount of money for the new budget period.
This ultimately implies that, the actual performance or current (previous) year's budget are only taken as a starting point.