Explanation:
1. A bond's face or maturity value is generally $1,000 and represents the amount borrowed from the bond's first purchaser.
2. A bond issuer is said to be in default if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue's restrictive covenants.
3. A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a singing fund provision.
4. A bond's call provision gives the issuer the right to call, or redeem, a bond at specific time and under specific conditions.
The equilibrium is the only price where quantity demanded is equal to quantity supplied.
Answer:
ASSETS = LIABILITIES + EQUITY
<u>cash</u> <u>supplies</u> <u>equip.</u> <u>land</u> = <u>acc. payable common stock</u>
19,000 19,000
-1,500 1,500
12,000 12,000
400 400
<u>-11,000 11,000 </u>
6,500 1,900 12,000 11,000 = 400 31,000
Explanation:
Dr cash 19,000
Cr common stock 19,000
Dr supplies 1,500
Cr cash 1,500
Dr equipment 12,000
Cr common stock 12,000
Dr supplies 400
Cr accounts payable 400
Dr land 11,000
Cr cash 11,000
Answer:
The correct answer is False.
Explanation:
A basic principle of investments is the creation of portfolios (or portfolios) for diversification purposes. At any given time, investors simultaneously hold a set of assets that make up their investment portfolio. A basic principle in finance is that an investor should not place all of his resources in a single asset or in a relatively small number of assets, but in a large number of investment instruments. In this way, the possible bad results in certain assets would be offset by the good results of others. Diversification allows the investor to lower the risk of his portfolio without sacrificing returns or, alternatively, increase the return on his portfolio without increasing his risk. Of course, diversification does not guarantee profits under any circumstances, but it does help to dampen the variability of returns on individual assets.