Answer:
D. Merchandise Inventory xxx
Accounts Receivable xxx
Explanation:
The Journal Entry is shown below:-
Merchandise Inventory A/c Dr, xxx
To Accounts Payable xxx
(Being purchase of inventory on account is recorded)
Therefore inventory is purchased so it will increasing assets, it is debited while accounts payable is increasing liabilities so it is credited.
Answer:
Dr. Cash $2,842
Dr. Discount Expense $58
Cr. Account Receivable $2,900
Explanation:
Terms 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
Sales = $3,700
Returns = $800
Amount Due = $3,700 - $800 = $2,900
As the payment is made within discount period, so discount will be availed
Discount = $2,900 x 2% = $58
Cash Paid = $2,900 - $58 = $2,842
Answer:
When a CBOE call option on APPLE is exercised, APPLE issues more stock.
Explanation:
A call option can be regarded as a "call", and can be explained as contract which exist between the buyer as well as the the seller of that call option, so they can exchange a security at a set price.
In domain of finance, the style or family of particular option can be regarded as the class that the option falls into, and this can be defined using dates that the option could be exercised. Most options usually fall as European or American options. It should be noted that An American option can be exercised at any time during its life. These should be noted;
✓A put option will always be exercised at maturity if the strike price is greater than the underlying asset price.
.A call option will always be exercised at maturity if the underlying asset price is greater than the strike price
Facts about
