Answer:
The journal entry for the issue of bond for cash is shown below:
Explanation:
January 1
Cash A/c..........................................Dr $281,400
Bonds Payable A/c....................................Cr $240,000
Premium on Bonds Payable A/c...........Cr $41,400
Working Notes:
Cash = Bonds Par Value × Selling Price
= $240,000 × 117.25 %
= $281,400
Premium on bonds payable = Cash - Bonds Payable
= $281,400 - $240,000
= $41,400
Answer:
A) Factoring
Explanation:
Factoring: This is a short term financial option which refers to financial transactions between a business firm and a financial institution. It is the selling of debt by a business firm at a discounted price to a financial institution.
Maurio inc. is involved in factoring by selling its accounts of credits to restube which is i financing firm at a discount in order to have enough capital to invest in digital publishing.
Factoring is the relationship between the financial institution and the business firm in which the fimancial institution purchases the business firms credit and pay about 80% to 90% immediately and pay the balance at a later date.
There are different types of factoring;
1) Domestic and export factoring
2) Recourse and non-recourse factoring
3) Advance and maturity factoring
4) Disclosed and undisclosed factoring
Answer:
The answer is: C) all members of the FASB are fully remunerated, serve full time, and are independent of any companies or institutions.
Explanation:
The FASB Board has 7 members which serve full time and get paid for doing it. Before their appointment to the board, they must cut all ties with any firms or institutions. Board members are appointed for five year terms and are eligible for one reappointment (another five more years).
The typical ideal risky investment offers a higher returns and lower liquidity than other investments
Risky investment are investment which has the property of being risky and usually take long period of time to start yielding higher return for the investors.
Example of Risky investment includes Options, Futures, Stocks Investments, Equity, and other Capital market instruments etc
The advantage of risky investment is that the yield on return are very higher than non-risky investment such as Money market
The disadvantage of the investment is that its offer lower liquidity, that is, the rate at which the investment can be converted back to cash is very slow.
Therefore, the Option B is correct because Risky investment offers higher returns and lower liquidity than other investments.
Learn more about Risky investment here
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