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1 year ago

Which of the following institutional investors most likely must spend a target percentage of the portfolio annually?

Business

1 answer:

konstantin123 [22]1 year ago

7 0

Answer: Endowments

Explanation:

The institutional investors that most likely must spend a target percentage of the portfolio annually is the endowments.

Endowment fund refers to the long term fund that is used for perpetual operations and usually set up by colleges or in hospitals

The fund then covers the expenses relating to provision of services for the students. A portion of the endowment is allowed to be use for every fiscal year.

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You purchase a bond with a coupon rate of 5.3 percent and a clean price of $951. Assume a par value of $1,000. If the next semi

olchik [2.2K]

Answer:

The invoice price is $ 969.

Explanation:

This question requires us to tell the invoice price (dirty price) of the bond. Clean price is given in the question. So we can easily calculate invoice price by adding accrued interest in dirty price. Detail calculation is given below.

Clean price = $ 951 -A

Accrued Interest = (5.3% * 1000)/12*4 = $ 17.67 -B

Invoice price = A+B = $ 969 (approx)

4 0

1 year ago

Based on the following information, compute cash flows from investing activities under GAAP.

777dan777 [17]

Answer:

$250

Explanation:

Computation of cash flows from investing activities under GAAP.

The Purchase of used equipment as well as the sale of investments often affect cash flow from operating activities.

Therefore,

Sale of investments $450

Less Purchase of used equipment (Cash outflow) ($200)

Cash flow from investing activity $250

Therefore the cash flows from investing activities under GAAP would be $250

8 0

2 years ago

Which of following is a TRUE statement about inventory within a continuous review system?

garri49 [273]

Answer:

c. When ordering or setup costs increase, Economic Order Quantity increases

Explanation:

In inventory there are two types of review systems used to replenish stock, the periodic inventory and continuous inventory.

Continuous inventory involves ordering the same quantity of a good in each order. However the rate at which goods are replenished varies based on monitoring of level of goods. Orders are made when inventory gets to a certain level.

In this instance when there is an increase in ordering or setup there needs to be allocation of a higher amount for orders. The additional cost is added to the economic order quantity

5 0

1 year ago

Dobry Die & Mold, Inc., enters into a contract with Chet's Refitting Service to fix Dobry's precisely engineered molding equ

wlad13 [49]

Answer:

I suppose that when Dobry and Chet's entered a contract there was a time set for the reparations to begin, maybe not to end the repairs since that may vary, but at least to start working on them and try to do it fast.

If Chet's delayed their work and did not start repairing Dobry's equipment on time (5 days), then Dobry should be able to sue for consequential damages in order to recover money due to a foreseeable loss beyond the contract. If Dobry cannot operate its equipment then it cannot produce, so it is Chet's fault that their production is halted.

7 0

1 year ago

On October 31, 2018, Damon Company’s general ledger shows a checking account balance of $8,397. The company’s cash receipts for

Lesechka [4]

Answer:

1. Damon Company

Bank Reconciliation Statement

October 31, 2018

Bank Balance

Amount$

Bank cash balance as per statement 11,725

Add: Adjustment

Deposits outstanding 3,025

(74,320 - 71,295)

Bank error 300

Less: Adjustment

Check outstanding 1,485

(72,467 - 70,983)

Bank balance as per Reconciliation $13,567

Company's Cash balance

Amount$

Company's Cash balance as per General Ledger 8,397

Add: Adjustment

Interest earned 320

Note collected 5,000

Less: Adjustment

Bank service fees 150

Company's Cash balance as per Reconciliation 13,567

Hence, correct ending balance of cash as on december 31, 2016 is $13,567

2. Necessary entries to adjust the balance for cash.

Date Account Title and Explanation Debit Credit

31 Oct Cash $5,320

Notes Receivables $500

Interest revenue $320

(To record cash increase)

Date Account Title and Explanation Debit Credit

31 Oct Service charges $150

Cash $150

(To record cash decreases)

8 0

2 years ago