Define liquidity risk and explain how it relates to bonds and bond yields.

Answers

Answer 1

Answer:

Liquidity risk is the inability to quickly sell a bond for its full value. This risk exists primarily in thinly traded issues. Default risk is the likelihood the issuer will default on its bond obligations and is the basis for bond ratings.

Liquidity is a prime determiner of yield spreads, explaining up to half of the cross-sectional variation in spread levels and up to two times the cross-sectional variation in spread changes that is explained by the effects of credit rating alone.

Liquidity risk Liquidity refers to the investor's ability to sell a bond quickly and at an efficient price, as reflected in the bid-ask spread. High-yield bonds can sometimes be less liquid than investment-grade bonds, depending on the issuer and the market conditions at any given time.

(If some parts overlap/relate to the exactly to other parts, I'm sorry. But there ya go !)


Related Questions

Suppose one-seventh of the employees of a certain company work in the Southeastern region. If the company employs 256 workers in that region, what is the total number of employees working for the company?

Answers

Answer:

1792

Explanation:

256 is 1 out of 7.

so 7 times 256 is 7 out of 7

256 x 7 = 1792

Sylvia believes and tries to follow the principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. She really tries incorporating a humane consideration of and for individuals and groups when deciding a course of action. Sylvia follows which of these ethical principles?

Answers

Answer:

Beneficince

Explanation:

There are 4 ethical principles: autonomous, beneficince, justice, and nonmalefecience.

Beneficence is the principle that considers two main concepts.

Benefits that all parties stand to gain and the balancing of risk and harm to all parties.

Focus is on protecting rights of others, prevention of harm, and rescue of persons in danger.

In the given scenario Sylvia considers the welfare and risks of all parties when considering policy decisions and outcomes. This in accordance with principle of beneficiance.

When a suspect is read his or her Miranda rights, he or she is reminded that he or she ______.


does not have the right to an attorney

does not have the right to remain silent

must answer all police questions

has the right to remain silent

Answers

He or she has the right to remain silent

Bryan Inc. produces a specialty top-quality juice machine. The product, the JM50, requires four processes to be completed. Specifically, these processes are exterior construction, pulp filter insertion, painting, and packaging. Each process is performed at separate workstations with different completion rates: Exterior construction can manufacture 100,000 juicer exteriors per day. Pulp filter insertion can install 25,000 filters every 6 hours. Painting can decorate 3,000 juicers every half hour. Packaging can package 5,000 juicers per hour. The plant operates 24/7, 24 hours a day every day of the week. How many JM50 machines can Bryan Inc. manufacture per month (assume an average 30-day month)

Answers

Answer:

3,000,000 juicers

Explanation:

Maximum numbers per workstation in 30 days:

Exterior construction = 100,000*30 = 3,000,000

Pulp filter = 25,000*24/6*30 = 3,000,000

Painting = 3,000*24/0.5*30 = 4,320,000

Packaging = 5,000*24*30 = 3,600,000.

The lowest of the numbers above is 3,120,000 and that means that Bryan inc. can manufacture 3,000,000 juicers.

You have a job at a real-estate agency in the small country of Dystopia, where you are paid 72,000 marks (the currency of Dystopia) a year. You are now faced with the decision of whether to work a second job at the local university teaching a real-estate investing class, where the pay is 45,000 marks a year. Social insurance tax and income tax rates are listed below.

Social insurance taxes: 7.65% on your first 110,100 marks of total income
Income taxes:

Taxable income (in marks) Tax rate
0–8,700 10%
8,700–35,350 15%
35,350–85,650 25%
85,650–178,650 28%

a.) Using the information above, what would be the total amount you pay in social insurance taxes on your second job? Give your answer to two decimals.
b.) What is your income tax bill for the second job? Give your answer to two decimals.
c.) What is your total tax bill for the new job? Give your answer to two decimals.

Answers

Answer:

2,914.65

2nd question : 12,190.50

Explanation:

income to be taxed is equal to (110,100 - 72,000) = 38,100 conchs. The tax itself is 7.65% × 38,100 =  2,914.65

2nd explaination: 25% × (85,650 - 72,000) = 25% × 13,650 = 3,412.50 conchs

28% × (45,000 - 13,650) = 28% × 31,350 = 8,778

Total income tax = 3,412.50 + 8,778 = 12,190.50 .

"Income to be taxed is equal to = 2,914.65 and The Total income tax  is = 12,190.50. Find more information check below".

Calculation of Income Tax

Part-1: income to be taxed is equal to (110,100 - 72,000) = 38,100 conchs.

Therefore, The tax itself is 7.65% × 38,100 is =  2,914.65

Part-2: 25% × (85,650 - 72,000) = 25% × 13,650 = 3,412.50 conchs

Then, 28% × (45,000 - 13,650) = 28% × 31,350 = 8,778

Therefore, The Total income tax is = 3,412.50 + 8,778 = 12,190.50.

Find more information about Income Tax here:

https://brainly.com/question/26410519

Discuss how one might use business analytics in their personal life. Select all that apply. A. A store might keep track of inventory and use it to decide what items are in demand. B. A reporter could analyze social media posts to see what types of people are more likely to share unverified news stories. C. An automobile owner can predict when the next maintenance will be due by recording things such as the miles driven and gas mileage. This would help them budget accordingly. D. A golf player might use statistics to help to diagnose problems and improve their game.

Answers

Answer:

A. A store might keep track of inventory and use it to decide what items are in demand.

C. An automobile owner can predict when the next maintenance will be due by recording things such as the miles driven and gas mileage.

Explanation:

Business analytics is an important tool which enables the user to record and keep track of business activities. The analysis of the recorded transactions in business will enable the user to predict about the future activities. An automobile owner can predict the maintenance due by keeping track of mileage. Store keeper may keep track of inventory usage.

Text written for advertising and marketing campaigns is referred to as o content. context O copy o collateral​

Answers

Answer:

always be it and never fail

Explanation:

What is the difference between profit and revenue?

A. Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.
B. Revenue is the total amount producers earn after subtracting the production costs. Profit is the total amount producers receive after selling a good.
C. Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers earn after subtracting the production costs.
D. Revenue is the total amount producers pay to manufacture a good. Profit is the total amount producers receive after selling a good

The correct answer on edge is A

Answers

Let's say, to produce one pencil you used $10. This is the cost of the product. You sell this pencil at a price of $15. $15 is your revenue, while $5 would be your profit, because 15-10 = 5.

The answer is correct.

Analysis of cash flows, analysis of competing hypotheses, consideration of analytical and accounting anomalies, big data and data analytics, consideration of the fraud triangle, use of graphical tools for analysis and communication, internal controls, the control environment and opportunity, interviewing for information and admissions, analysis of nonaccounting and nonfinancial numbers and metrics, financial statement and ratio analysis, consideration of red flags, and analysis of related parties are all examples of:

Answers

Answer:

Forensic accounting and fraud examination tools/techniques.

Explanation:

Forensic accounting is one that make use of auditing as well as accounting and investigative skills in conducting examination about the Businesses and individuals finances. It gives accounting analysis that could be used in legal proceedings. It is one of the tools/ techniques for fraud examination

The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020

Answers

Answer:

$150 Decrease

Explanation:

                  Income Statement

                                      Present    Proposed

Sales                              $5,000    $5,350 [(5000+30%)-10%]

Variable 10%                  $2,000    $2,000 (2000*130%)

Contribution Margin      $3,000    $3,250

Fixed cost                           -          $400  

Net Operating Income $3,000    $2,850

Effect on Net Operating Income = $2,850 - $3,000 = -$150

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 112,000 $ 56,000 $ 168,000 Variable expenses 34,600 7,400 42,000 Contribution margin $ 77,400 $ 48,600 126,000 Fixed expenses 86,850 Net operating income $ 39,150 Required: 1. What is the overall contribution margin (CM) ratio for the company

Answers

The overall contribution margin ratio can be computed as follows:

Overall CM ratio = Total contribution margin/Total sales

= $141,600/177000= 80%

Suppose that there are two types of employees: Narutos and Sasukes. Employers cannot distinguish between the two types during a job. interview, but they value Narutos more because everyone is more productive around them. Assume that the value of a Sasuke-type employee is $10 and the value of a Naruto type is $20. Also assume that the cost of education for a Sasuke is 2.5y and the cost of education for a Naruto is 2y, where y is years of education. If Narutos make up 25% ofthe population:
a. What is the pooling equilibrium wage?
b. What values of y will lead to a separating equilibrium?

Answers

Answer:

Explanation:

From the given information:

The average wage is expected to be paid to both workers since it is difficult tot distinguish between the two types.

w_s = 10

w_N = 20

ω_s = 2.5y

ω_N = 2y

proportion of N types (λ) = 0.25

proportion of S types (1-λ) = 0.75

Thus, the pooling wage = λ_Nw_N + λ_Sw_S

= (0.25 × 20) + (0.75 × 10)

= 5.0 + 7.5

= $12.5

(b)

The separating equilibrium can be computed as follows:

N-type ( High type) : w_N- w_S > ω_N

= 20 - 10 > 2y

2y < 10

y < 5

For an S-type (low type); the cost of education needs to be greater than the increment in wages if the education is acquired.

w_N- w_S > ω_S

If education is acquired, S-type will get wages as of N-types

Thus;

20-10 <2.5y

10 < 2.5y

y > 4

Hence, the value of y= (4,5)


When originally purchased, a truck costing BD 23.000 had an estimated useful life of 8 years and an estimated salvage value of BD 3,000. After 4 years of
straight-line depreciation, the ascet's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage valoe. The
depreciation expense in year 3 cquals:
ABD 5,000
O & BD 5.750.
O CBD 2.875.
ODBD 2,500.

Answers

Answer:

d. BD 2,500

Explanation:

Accumulated Depreciation through the end of year 4 = [ Asset's cost - Salvage Value) / Estimated Useful Life] * Years Elapsed

= [(23,000 - 3,000)/8] * 4

= BD 10,000

Depreciation in Year 3 = [Asset's cost - Salvage Value - Accumulated Depreciation] / Remaining Estimated Useful Life

Depreciation in Year 3 = [23,000 - 3,000 - 10,000] / 4

Depreciation in Year 3 = 10,000 / 4

Depreciation in Year 3 = BD 2,500

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unit would be $10 for A and $12 for B; and revenue per unit would be $15 for A and $16 for B.
a) Determine each alternative’s break-even point in units.
b) At what volume of output would the two alternatives yield the same profit?
c) If expected annual demand is 12,000 units, which alternative would yield the higher profit?

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Alternative A:

Fixed costs= $40,000

Variable cost per unti= $10

Revenue per unit= $15

Alternative B:

Fixed costs= $30,000

Variable cost per unti= $12

Revenue per unit= $16

First, we need to calculate the break-even point in units using the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Alternative A= 40,000 / (15 - 10)

Alternative A= 8,000

Alternative B= 30,000 / (16 - 12)

Alternative B= 7,500  

To calculate the indifference point in units, we need to determine the net income equations:

Alternativa A= 5*x - 40,000

Alternative B= 4*x - 30,000

x= number of units

We equal both formulas and isolate x:

5x - 40,000 = 4x - 30,000

x = 10,000

The indifference point is 10,000 units.

Finally, the higher income for 12,000 units:

Alternativa A= 5*12,000 - 40,000= $20,000

Alternative B= 4*12,000 - 30,000= $18,000

For 12,000 units the best option is alternative A.

Retained earnings, December 31, 2019 $315,450
Decrease in total liabilities during 2019 68,700
Gain on the sale of buildings during 2019 24,150
Dividends declared and paid in 2019 6,750
Proceeds from sale of common stock in 2019 74,100
Net income for the year ended December 31, 2019 33,900

Required:
From the above data, calculate the retained earnings balance as of December 31, 2018. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

Answers

Answer:

See below

Explanation:

Ending retained earnings = Beginning retained earnings + net profit - dividend

$315,450 = Beginning retained earnings + $33,900 - $6,750

Beginning retained earnings = $288,300

Therefore, retained earning balance is $288,300

if you calculating the simple interest and you are given the time in months. how can you find the time in years​

Answers

Answer:

Divide the months by 12

Explanation:

1.Production runs can be scheduled in
A. only one shift
B. always two shifts
C. one or two shifts
D. up to three shifts
2.Hiring the Needed Complement will always eliminate
A. Overtime
B. worker layoffs
C. a Second Shift
D. strikes
3.Management should strive to
A. increase Turnover
B. decrease Turnover
4.Increasing Capacity tends to
A. reduce the Needed Complement
B. reduce the number of workers on Second Shift
C. reduce Overtime
5.Increasing Training Hours tends to
A. increase the Needed Complement
B. decrease the Needed Complement
C. neither increase nor decrease the Needed Complement
D. both increase and decrease the Needed Complement
6.Recruiting Costs are incurred when
A. Automation levels increase
B. Production runs increase and teams match hiring to Needed Complement
C. workers are assigned to a Second Shift
7.Assuming the Productivity Index is greater than 100%, adding Overtime will
A. increase the Productivity Index
B. decrease the Productivity Index
8.Worker training is entered by the
A. Hour
B. Dollar
9.Teams can eliminate all Recruiting Costs if they wish
A. True
B. False
10.Generally, Separation Costs will be incurred when
A. Production levels increase
B. Automation Levels increase
C. Production Levels decrease
D. Production levels decrease and / or Automation levels increase

Answers

Answer:

Explanation:

10)production levels decrease and/or automation levels increase

Type the correct answer in the box. Spell all words correctly.
Complete the sentence using the correct term.
Heavy industrialization is polluting a natural lake in a certain area. The lake is a habitat for various natural flora and fauna. The local government is looking for ways to improve the condition of the lake and make it a tourist attraction. They should seek the help of a(n)

Answers

Answer:

(i know this is late) im taking the test on plato and I think it's a hydrologist

Explanation:

Daria plans to retire in 20 years and wants to know how much she will need to have in her account when she retires. She wants to be able to withdraw $5,000 per month for 25 years of retirement, and she expects her account to earn a nominal rate of 9 percent per year. Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)

Answers

We know that she has 20 years left until she retire

We need to find the amount she have to save and add to her saving per year for the the next 20 years.

Given she wants to be able to withdraw $5000 per month for 25 years

25 years = 300 months

$5,000 x 300 months = $1,500,000

she will needs one million and five hundred thousand dollars when she retire

Let's say she just started saving

Daria needs to have present value of the annuity of 25 years, PV is then calculated using the PV function as follows:

=PV(rate,nper,pmt)

=PV(9%/12,12*25,5000)

=595808.11

The present value should be 595808.11.

Calculation of the present value:

Given that,

The 25 years = 300

The rate is = 9% /12

PMT = $5,000

Now the following formula should be used.

=PV(rate,nper,pmt)

=PV(9%/12,12*25,5000)

=595808.11

Learn more about rate here: https://brainly.com/question/24334808

Smith and Johnson are partners. Smith's capital balance in the partnership is $56,000, and Johnson's capital balance $42,000. Smith and Johnson have agreed to share equally in income or loss. Smith and Johnson agree to accept Benson for a 25% interest. Benson will invest $40,000 in the partnership. The bonus that is granted to Smith and Johnson equals:

Answers

Answer:The bonus that is granted to Smith and Johnson equals:$5,500

that is $2750 each for Smith and Johnson since they share equally.

Explanation:

Given that

Smith's capital balance = $56,000

Johnson's  capital balance = $42,000

Since the  partners agree to accept Benson with 25% interest

Benson  invests  $40,000

Now, After allowing Benson,  

Total Partnership Equity =Smith's Capital + Johnson's Capital + Benson's Investment

=$56,000 + $42,000 +$40,000 = $138,000

The share of Benson  in equity is given as,

$138,000 x 25% = $34,500

The Bonus that is present  for Smith and Johnson is

Benson's investment - Benson share of equity

= $40,000 - $34,500

=$5,500

Thus,

When equally shared becomes  $2750 each for both Smith and Johnson

The monetary unit assumption: Multiple Choice Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. Means that we can express transactions and events in monetary, or money, units. Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods. Means that a business is accounted for separately from other business entities, including its owner. Prescribes that a company record the expenses it incurred to generate the revenue reported.

Answers

Answer:

Means that we can express transactions and events in monetary, or money, units.

Explanation:

monetary unit assumption: Means that we can express transactions and events in monetary, or money, units.

Going concern assumption -  accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Time period assumption - Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.

Business entity assumption -  Means that a business is accounted for separately from other business entities, including its owner

Matching principle - Prescribes that a company record the expenses it incurred to generate the revenue reported.

The unadjusted trial balance of Sketch Star Makers Inc., prepared as of December 31, 2018, includes the following account balances. All of the accounts listed have normal balances. Cash$18,500 Accounts Receivable 3,700 Supplies 4,400 Prepaid Insurance 8,200 Equipment 27,000 Accumulated Depreciation 3,700 Notes Payable (long-term) 37,000 Deferred Revenue 13,500 Service Revenue 47,000 Salaries and Wages Expense 38,500 The following information is also available: A) A count of supplies revealed $2,100 worth on hand at December 31, 2018. B) An insurance policy, purchased on January 1, 2018, covers five years. C) The equipment depreciates at a rate of $2,700 per year; no depreciation has been recorded for 2018. D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018. E) The accrued amount of salaries and wages at December 31, 2018 is $3,700. Required: Prepare the required adjustments for the company as of December 31, 2018

Answers

Answer:

A) A count of supplies revealed $2,100 worth on hand at December 31, 2018.

Dr Supplies expense 2,300

    Cr Supplies 2,300

B) An insurance policy, purchased on January 1, 2018, covers five years.

Dr Insurance expense 1,640

    Cr Prepaid insurance 1,640

C) The equipment depreciates at a rate of $2,700 per year; no depreciation has been recorded for 2018.

Dr Depreciation expense 2,700

    Cr Accumulated depreciation, equipment 2,700

D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018.

Dr Deferred revenue 6,750

    Cr Service revenue6,750

E) The accrued amount of salaries and wages at December 31, 2018 is $3,700.

Dr Wages expense 3,700

    Cr Wages payable 3,700

Determine cost of goods sold for X-mart, assuming that beginning inventory was $5,000. Net purchases were $20,000 and ending inventory was $9,000. Multiple choice question. $16,000 $24,000 $20,000 $6,000 g

Answers

Answer:

$16,000

Explanation:

Beginning inventory is $5,000

Net purchases is $20,000

Ending inventory is $9,000

Therefore the cost of goods sold can be calculated as follows

= (5,000+20,000)-9,000

= 25,000-9,000

= 16,000

Hence the cost of goods sold is $16,000

Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 54,000 labor-hours. The estimated variable manufacturing overhead was $7.90 per labor-hour and the estimated total fixed manufacturing overhead was $961,200. The actual labor-hours for the year turned out to be 56,300 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.)

Answers

Answer:

$17.80 per labor-hour

Explanation:

Predetermined overhead rate = Budgeted Fixed Overheads ÷ Budgeted Activity

                                                  = $961,200 ÷ 54,000 labor-hours

                                                  = $17.80 per labor-hour

Predetermined overhead rate for the recently completed year is $17.80 per labor-hour.

Assume that the demand for coal is more elastic than the supply. A tax on coal will a. increase the price of coal that sellers really get, and buyers bear a smaller burden of the tax b. decrease the price of coal that sellers really get, and sellers have to bear a bigger burden of the tax c. decrease the price of coal paid by buyers, and buyers have to bear a bigger burden of the tax d. increase the price of coal paid by buyers, and sellers bear a smaller burden of the tax

Answers

Answer:

b

Explanation:

The following information was provided by Dylan Manufacturing: Work in process increased by $19,000. Finished goods inventory decreased by $33,000. Direct materials used totaled $54,000. Direct labor incurred totaled $42,000. The predetermined manufacturing overhead rate was $27.00 per machine hour. Actual manufacturing overhead totaled $77,000. The estimated machine-hours were 3,000 hours and the actual machine-hours was 2,800 hours. How much is the cost of goods sold before any adjustment for overapplied or underapplied overhead

Answers

Answer:

$185,600

Explanation:

Direct materials                       $54,000

Direct labour                            $42,000

Predetermined OH                  $75,600 (2800*$27)

Cost of goods manufactured  $171,600

Cost of goods sold = Cost of goods manufactured  + WIP increase - Finished good decrease

Cost of goods sold = $171,600 + (-$19,000) + $33,000

Cost of goods sold = $185,600

A company's income statement showed the following: net income, $115,000; depreciation expense, $30,500; and gain on sale of plant assets, $4,500. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $9,500; merchandise inventory increased $18,500; prepaid expenses increased $6,300; accounts payable increased $3,500. Calculate the net cash provided or used by operating activities.

Answers

Answer:

$129,200

Explanation:

Cash flow from Operating activities

net income,                                                                 $115,000

adjust for non cash items :

depreciation expense,                                               $30,500

gain on sale of plant assets,                                      ($4,500)

adjust for changes in working capital :

decrease in accounts receivable                               $9,500

increase in merchandise inventory                          ($18,500)

increase in prepaid expenses                                   ($6,300)

increase in accounts payable                                     $3,500

Cash flow from Operating Activities                       $129,200

Which of these is a renewable marine resource that could be utilized to produce electricity?

Answers

Answer:

Hydro energy

Explanation:

Hydro energy is a renewable marine resource that can be used to generate electricity.

It is derived from a dam that enables the formation of a controlled flow of water that will steer a turbine, thereby generating electricity.

Another renewable marine resource is Tidal energy that uses tidal currents to propel turbine generators in generating electricity.

Harold Manufacturing produces denim clothing. This year, it produced 5,000 denim jackets at a manufacturing cost of $45 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets. Jackets can be sold as is to a secondhand clothing shop for $6 each.Jackets can be disassembled at a cost of $32,000 and sold to a recycler for $12 each.Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,000 jackets into only 3,000 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,000, but the jackets can then be sold for their regular price of $45 each.Required:1. Calculate the incremental income.

Answers

Answer:

ALTERNATIVE 1 $30,000

ALTERNATIVE 2 $28,000

ALTERNATIVE 3 $33,000

Explanation:

Calculation for the incremental income

ALTERNATIVE 1 Sell as it is

Incremental revenue $30,000

(5,000*$6)

Incremental costs $0

Incremental Income $30,000

ALTERNATIVE 2 Disassemble and sell to recycler

Incremental revenue $60,000

(5,000*$12)

Incremental costs $32,000

Incremental Income $28,000

ALTERNATIVE3 Rework and turn into good jackets

Incremental revenue $135,000

(3,000*$45)

Incremental costs $102,000

Incremental Income $33,000

Therefore based on the above calculation the company should choose ALTERNATIVE 3 of the amount of $33,000

Identify the items/accounts from the following list that are likely to serve as source documents. (You may select more than one answer.
a. Sales ticket
b. Trial balance
c. Balance sheet
d. Telephone bill
e. Invoice from supplier
f. Company revenue account
g. Income statement
h. Bank statement
i. Prepaid insurance

Answers

Answer:

Sales ticket, Telephone bill, Invoice from supplier and Bank statement

Explanation:

Source documents are used as source of information for accounting entries that can be either electronic or paper form. It is the original document which contains the details of a business transactions. It is the source to record accounting transactions. Usually it contains 'Names of the parties involved, Amounts, the date and substance of the transaction'. Simply for the auditor it serves as an evidence to accounting transactions and for the company it serves as a proof.

Source documents:

Sales tickets, it is the evidence to sales revenue

Telephone bill, it is the evidence to telephone expense

invoice from supplier, it is the evidence to purchases

Bank statement, it is the evidence to 'bank charges like interest expense, interest income.

Other Questions
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