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2 years ago

A personal balance sheet reports your income and expenses.

1 answer:

4 0

To answer the question above if a personal balance sheet is a report to your income and expenses. the answer is letter A, True. Balance sheet as a whole is a statement of the assets and liabilities, it details the income and expenditure over a preceding period of time.

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$1,000 of supplies were purchased at the beginning of the month. $300 were used during the month. (The Supplies account was incr

lyudmila [28]

Answer:

Explanation:

Given that

Beginning of month supplies purchased for $1,000

And, the supplies used = $300

So, The adjusting entry is as follows

1. Supplies expense A/c Dr $700

To supplies A/c $700

(Being supplies expense is recorded)

The supplies expense is computed by

= Supplies balance - supplies used

= $1,000 - $300

= $700

7 0

2 years ago

Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. Suppose also that the expected re

choli [55]

Answer:

a) The Beta of market portfolio of is always 1, hence the expected return of market portfolio will be 10%

Expected return = Rf+Beta(Rm-Rf)

=4%+1*(10%-4%)= 10%

b) Expected return of zero beta stock will be risk free return = 4%

Expected return = Rf+Beta(Rm-Rf)

=4%+0*(10%-4%)= 4%

C-1) Fair rate of return = 1%

Working:-

The expected return by SML of stock with Beta= -0.5

= 4%+(-0.5)*(10%-4%) =1%

C-2) Expected rate of return, using the expected price and dividend for next year

Ans:- Expected rate of return = 16%

Working:-

Expected rate of return

=(Price of share next year +dividend)/current price-1

=(78+9-75)/75 -1

=16%

C-3) Stock is Under priced

Reason:- The expected return(16%) on stock is higher than the fair rate of return (1%) hence the stock must be under-priced.

8 0

3 years ago

It will take Cody 3 months to save up enough money to purchase a stereo. He has a credit card with a 12% interest rate. Cody’s f

Alchen [17]

Answer:

Mark is correct.

Explanation:

If Cody saves for three months, he will not incur any other cost apart from the purchase price of the stereo. Cody may even earn some interest on the savings depending on his type of account.

The use of a credit card is incurring a debt. The credit card debt is usually among the highest in the market. It calculates interests monthly. If Coby purchases the credit card, he will pay three months' interest on the credit.

The savings option will cost less money because it eliminates interest payments.

6 0

2 years ago

Read 2 more answers

Which one of the following expenses would be denied as entertainment and would not be deductible?

Aloiza [94]

Answer is C other options are deductibles

7 0

2 years ago

Read 2 more answers

Sales $ 1,000,000 Net income $ 45,000 Current Assets $ 50,000 Fixed Assets $ 200,000 Total Assets $ 250,000 Current Liabilities

marishachu [46]

Answer:

Profit Margin = income / sales

45,000 / 1,000,000 = 4.5%

Return on Assets = income / assets

45,000 / 250,000 = 18%

Assets turnover = sales / assets

1,000,000 / 250,000 = 4

Earning per share: income / shares outstanding

45,000 / 40,000 = 1.125

Price- Earning ratio = market price / EPS

28 / 1.125 = 24,89

Return on Equity = income / equity*

45,000 / 120,000 = 37.5%

Debt to Equity ratio liab / equity

130,000 / 120,000 = 1,08

Explanation:

*solving for equity

Assets = laib + equity

250,000 = 130,000 + equity

equity = 120,000

5 0

2 years ago