Answer:
The correct answer is C
Explanation:
The amount of correct balance which is shown in the bank account at the month end is:
= Month end balance - Outstanding balance + Deposit in transit at month end + Check which was erroneously charged by bank
= $36,000 - $10,000 + $4,000 + $600
= $26,000 + $4,600
= $30,600
Therefore, the month end balance amounts to $30,600 in the bank account.
The answer is liquidity (A)
Answer:
D. Prices fully reflect all available information
Explanation:
As per the efficient market hypothesis, security prices reflect full available market information due to which stocks trade at their fair market value prices.
Due to stocks trading at their fair market value, any possibility of making arbitrage gains is wiped out as buying low and selling high isn't a possibility.
The theory also states that the only way to earn higher profits is by assuming a higher degree of risk.
The theory states that stock prices follow a random walk and there is no perfect method to estimate the patterns and trends of the market irrespective of fundamental or technical analysis carried out.
The efficient market theory mentioned 3 conditions or market forms, strong form, semi strong form and weak form.
