ACC2363_Assignment 8_Q #10 Unrealized Gain

For an individual investor, investment in which one of the following accounts has the best liquidity? a. Group of answer choices b. regular taxable investment account c. 401 (k) d. IRA e. Roth IRA

Which one of the following statements related to capital gains is correct? Multiple Choice O O O O The capital gains yield includes only realized capital gains. An increase in an unrealized capital gain will increase the capital gains yield. The capital gains yield must be either positive or zero. The capital gains yield is expressed as a percentage of a security's total return. The capital gains yield represents the total return earned by an investor.

The capital asset pricing model expresses the cost of equity as a function of a return on riskless assets, a market premium, and: Select one:a. Unsystematic risk.b. None of these.c. The cost of debt.d. Systematic risk.

5. Changes in the fair value of the effective portion of a hedging financial instrument are recognized as a part of current earnings of the period for which of the following?   Cash Flow Hedge Fair Value Hedge a. Yes Yes b. No Yes c. Yes No d. No No   Multiple Choice   a.   b.   c.   d.

Please answer with reason for all why the option is correct and why the other options are incorrect

Investors will pay a premium to invest in risky assets. OA. True OB. False

15. Which of the following statements regarding available-for-sale equity investments is true? a. The realized gain on sale is determined by comparing the carrying value of the investment with its selling price.b. Income is affected by temporary changes in market value.c. All equity security investments are classified as noncurrent.d. Permanent declines in value are reported on the income statement.

1. How are passive investments accounted for under ASPE? a) Cost of amortized cost. b) FVTPL for equity securities with fair value prices c) Neither is correct. d) Both treatments are acceptable.

Please answer in CAPITAL LETTER IF IT IS AN INFLOW(I )OR AN OUTFLOW (O)COLUMN 1 , AND COLUMN 2 , IF IT CORRESPONDS TO OPERATINGCASHFLOW(OC),INVESTMENT ACTIVITY CASHFLOW(IC), FINANCING ACTIVITY CASHFLOW ( FC)Example: Reduce marketable securities : I OC ( "I" or "O") AND ("OC", "IC" o "FC" )Activity INFLOW " I" orOutflow "O"              OPERATINGCASHFLOW(OC), INVESTMENTACTIVITY CASHFLOW(IC), FINANCINGACTIVITY CASHFLOW ( FC) 1. Purchase of treasurystock2. Purchase of availablefor sale investment 3. Sale of equipment at aloss 4. Increase in accountspayable 5. Retirement of bonds 6. Issuance of bonds 7. Decrease in accountspayable 8. Increase in inventory9. Loan from bank bysigning a note 10. Increase in accountsreceivable 11. Purchase of equipmentby issuing a note 12. Purchase of land andbuilding. 13. Decrease in accountsreceivable.14. Payment of dividends. 15.…

Describe the Procedures used to determine the rate of return internal to nonsimple investments?

Part A: Choose the correct option for each question (investments) A) increased, increased B) increased, decreased C) decreased, increased D) decreased, decreased E) No change, increased F) No change, decreased Question 1. In an investment, what effect does. decreasing the frequency of payments have on the total principal invested and on the interest paid? 2. In an investment, what effect does decreasing the payment amount have on the total principal invested and on the interest paid? 3. In an investment, what effect does decreasing the frequency of compound periods have on the total principal invested and on the interest paid? 4. In an investment, what effect does increasing the interest rate have on the total principal invested and on the interest paid? 5. In an investment, what effect does decreasing the interest rate have on the total principal invested and on the interest paid? Answer [Ex: E) No change, Increased)