Answer:
No impact on accounting equation of Breeze Inc.
Explanation:
Account equation: Asset = Liabilities + Shareholders' equity
Upon delivery and invoicing of the 4 wind turbines, the Breeze Inc. had recognized following journal entry:
An asset is recorded
Accounts receivable (Debit)
Sales (Credit)
Upon receipt of cash, accounts receivable is credited and cash is credited e.g. there is no impact on total assets, therefore there is no impact on accounting equation.
Answer:
8.3%
Explanation:
total return on the share stock=(Increase in share price + dividend paid)/share price at beginning of the year
Total return on the share of stock=((9.15-9)+.6)/9
Total return on the share of stock=8.3%
Answer: C) Stock prices would only change on unexpected news
Explanation:
If the stock market was perfectly efficient, it would mean that all known information is already reflected in the stock price. This includes both historical and current data.
For the stock price to change therefore, there would have to be unexpected news that are not already accounted for in the price and so will force it to react positively or negatively.
Answer:
E.T. the Extraterrestrial
Adjustment for inflation in 1997
Value of E.T. box office receipts = $723,681,284.11 ($435,110,554/96.5 x 160.5)
Explanation:
To adjust a 1982 receipts for inflation in 1997, the 1982 receipts is divided by the 1982 price index and multiplied by the 1997 price index. This results to an inflation-reflected receipts in 1997.
The adjustment helps to put a value that is equivalent to the current price (assessed period's current price) having factored in inflation.
A Consumer Price Index is a statistical estimate that measures the changes in the price level of a weighted average market basket of consumer goods and services purchased by households. It is measured periodically to reflect inflation.
Inflation is the general rise in the prices where a unit of currency yesterperiod buys less today than it did. It is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
