How should julie explain to laurie

Assignment Help Accounting Basics
Reference no: EM133114622

Question - Laurie Seals and Julie Winn are roommates at Upland State College. Lauri majors in political science and Julie is an accounting major. Recently, one of Laurie's political science classes has been discussing the impact of derivative trading losses on the finances of several public institutions in the United States, including city government and public colleges. The political science class has decided that derivatives are nothing more than a sophisticated form of gambling and that their trading in the United States should be banned. How should Julie explain to Laurie that derivatives serve a vital business purpose?

Reference no: EM133114622

Questions Cloud

What is the full cost per unit of y : A company manufactures two products X and Y. The price of X is £10 and a volume of 10,000 units. What is the full cost per unit of Y
Value of the stock according to gordon model : Chris is considering investing in the stock of Gamma Corporation, which is currently trading at $12.40 per share. The stock recently paid a dividend of $2.25; h
Weighted average cost of capital for mike auto : Mike's Auto has a rate of equity of 9.5%, a rate of preferred stock of 8.25%, and a rate of debt (before tax) of 7% percent. They have 100,000 bonds outstanding
What is the accumulated sum of stream : Your client plans to retire in 14 years. He is going to place $2,513 every year at the end of the year in a saving account at 9.35 percent, compounded annually.
How should julie explain to laurie : Laurie Seals and Julie Winn are roommates at Upland State College. How should Julie explain to Laurie that derivatives serve a vital business purpose
What is the firm weighted average cost of capital : Phillips Equipment has 75,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 7.5 percent. The company also has 750,0
Who pays the cost of credit : Who pays the cost of credit? the buyer or the seller and in what way?
Find payments on a mortgage loan for a home : Mr. and Mrs. Bailey have been advised by their financial planner that they can afford to make $650-a-month payments on a mortgage loan for a home.
Prepare journal entries required to record these activities : Prepare the journal entries required to record these activities, and indicate which fund each journal entry will be recorded in

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the recipient and amount of the partner bonus b

andrew hall and brian li formed a partnership to provide landscaping services. hall and li shared profits and losses

  How many days will be used when computing offset share

How many days will be used when computing Offset's share of S corporation income for this year (a non-leap year)

  What recommendations do you have for tornado

The city is barely balancing its budget now, so Tornado is concerned that there will not be enough resources available to pay the interest for the next 25 years and redeem the principal when it comes due. What recommendations do you have for Torna..

  What is the amount realized by roberta in the exchange

The corporation assumed a liability of $150 on the property transferred. What is the amount realized by Roberta in the exchange

  What has been the annual rate of appreciation of the value

The home the Bensons purchased 13 years ago for $101,000 is now appraised at $231,000. What has been the annual rate of appreciation of the value

  Analyse actions of hotrod in relation to image restoration

PRS303 Hotrod and the Case of the Lethal Floormats Case Study. Provide advice to Hotrod's CEO and senior management on the strategies to implement in order to recover their loss in reputation. Analyse the actions of Hotrod in relation to image resto..

  Compute the predetermined overhead allocation rate

Compute the predetermined overhead allocation rate. Round to two decimal places. Prepare the journal entry for underallocated or overallocated overhead

  Explain why is integrity a threat in the scenario

Why is integrity a threat in this scenario? You are one of the three partners in a firm of accountants. Five years ago, the firm was appointed

  Determine the amount of income taxes payable

Hunter's unadjusted trial balance dated December 31, 2015, reports Income Taxes Expense of $70,000, Determine the amount of income taxes payable

  Rankine company estimates its bad debts expense by aging

rankine company estimates its bad debts expense by aging its accounts receivable and applying percentages to various

  How much should be the capital balance

The land was sold for P50,000 on the same date, three hours after formation of the partnership. How much should BE THE CAPITAL BALANCE

  Effect of transactions on total amount of seller

A vacant lot acquired for $200,000, on which there is a balance owed of $120,000, is sold for $300,000 in cash. The seller pays the $120,000 owed. What is the effect of these transactions on the total amount of the seller's (1) assets, (2) liabili..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd