In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred.

Feb. 1 Purchased 500 shares of Muninger common stock for $27,500.
Mar. 1 Purchased 700 shares of Tatman common stock for $17,500.
Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1.
July 1 Received a cash dividend of $0.50 per share on the Muninger common stock.
Aug. 1 Sold 167 shares of Muninger common stock at $65 per share.
Sept.1 Received a $1 per share cash dividend on the Tatman common stock.
Oct. 1 Received the semiannual interest on the Yoakem bonds.
Oct. 1 Sold the Yoakem bonds for $41,000.

Required:
At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share. Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities.

Answers

Answer 1

Answer:

Sheridan Company

Adjusting Entries for reporting fair values of investments:

December 31, 2020:

Debit Investment in Muninger $333

Credit Unrealized Gains on Investment $333

To record the fair value of common stock investment.

Debit Unrealized Loss on Investment $700

Credit Investment in Tatman $700

To record the fair value of common stock investment.

Explanation:

a) Feb. 1, Muniger Common Stock  500 shares at $55  for $27,500

August 1, Sold                                  167 shares at $65 for  $10,855

December 31 Remaining at fair value, 333 shares at $56 for $18,648

Fair Value Gain = $1 x 333 shares = $333

b) Tatman Common Stock  700 shares for $17,500

March 1, Common Stock 700 shares at $25 for $17,500

December 31, Remaining at fair value, 700 shares at $24 for $16,800

Fair Value Loss = $1 x 700 = $700

c) Trading Investments are held for short-term purposes to take advantage of dividends and changes in the market price of the investments.  These securities are accounted for at fair value.  The requirement is that at the end of the accounting period, the fair value is determined and used to value the investment.  Unrealized Gains or Losses are recorded, depending on their fair values.  The gains or losses become realized when the investments are sold.


Related Questions

A company has been accidentally polluting a local water source. The chemicals may cause health issues for small children. Who are the MOST important stakeholders in this scenario?

A.
local doctors and social workers

B.
the children and families and the company

C.
police and the local government

D.
fish and game wardens and local doctors

Answers

The MOST important stakeholders in this scenario are option B: the children and families and the company.

Give justification for your answer?

The accidental pollution of a local water source can have serious health implications for the children and families who rely on that water source. They are the most important stakeholders in this situation as their health and well-being are directly impacted by the pollution. The company responsible for the pollution is also a key stakeholder as they are responsible for addressing the situation and mitigating any harm caused. It is important for the company to take responsibility for their actions and work towards finding a solution that protects the health and safety of the affected community. While local doctors and social workers may be involved in addressing the health impacts of the pollution, and fish and game wardens may be involved in assessing the environmental impact, they are not the most important stakeholders in this scenario.

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Dividends Per Share
Sandpiper Company has 30,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $25 par common stock. The following amounts were distributed as dividends:
20Y1 $75,000
20Y2 24,000
20Y3 90,000
Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.

Answers

The dividends per share for preferred stock for years 20Y1, 20Y2, and 20Y3 are $2.50, $0.80, and $3.00, respectively. The dividends per share for common stock for the same years are $1.50, $0.48, and $1.80, respectively.

To determine the dividends per share for preferred and common stock for each year, we need to divide the total dividend amount by the number of shares for each type of stock.

Preferred Stock:

The preferred stock has a 1% dividend rate and a par value of $100 per share. There are 30,000 shares of cumulative preferred stock.

Year 20Y1:

Dividend per share for preferred stock = Dividend amount / Number of preferred shares

Dividend per share for preferred stock = $75,000 / 30,000

Dividend per share for preferred stock = $2.50

Year 20Y2:

Dividend per share for preferred stock = $24,000 / 30,000

Dividend per share for preferred stock = $0.80

Year 20Y3:

Dividend per share for preferred stock = $90,000 / 30,000

Dividend per share for preferred stock = $3.00

Common Stock:

The common stock has a par value of $25 per share. There are 50,000 shares of common stock.

Year 20Y1:

Dividend per share for common stock = Dividend amount / Number of common shares

Dividend per share for common stock = $75,000 / 50,000

Dividend per share for common stock = $1.50

Year 20Y2:

Dividend per share for common stock = $24,000 / 50,000

Dividend per share for common stock = $0.48

Year 20Y3:

Dividend per share for common stock = $90,000 / 50,000

Dividend per share for common stock = $1.80

In summary, the dividends per share for preferred stock for years 20Y1, 20Y2, and 20Y3 are $2.50, $0.80, and $3.00, respectively. The dividends per share for common stock for the same years are $1.50, $0.48, and $1.80, respectively.

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Why is it important to dress for success at a job interview?

Answers

it is important to dress for success at a interview for multiple reasons. but the absolute main reason is to make it seem like you are determined to get the job, or in other words, your are taking it serious and not messing around. if you don’t dress for success or professionally, the interviewer will not see you as hard-working which can lead to you not getting the job. hoped this helped, sorry if it didn’t:-)

Answer:

For a variety of reasons, it is critical to dress for success during an interview. However, the most important reason is to make it appear as though you are serious about getting the job, or in other words, that you are not wasting your time. If you don't dress professionally or for success, the interviewer may not perceive you as hardworking, and you may lose the job.

Explanation:

The control of performance appraisals and remuneration levels relates to the control of Select one: a. financial resources b. human resources c. information resources d. physical resources ​

Answers

Answer:

financial resource is needed to control of performance appraisal and remuneration

The control of performance appraisals and remuneration levels relates to the control of human resources. Thus, option (b) is correct.

What is performance appraisals?

Periodic reviews of an employee's job performance in relation to a set of objectives and expectations are known as performance appraisals. The outcomes of this procedure are used to assess the employee's assets and liabilities, relative value to the company, and potential for further development.

Controlling human resources includes having control over things like performance reviews and pay scales. A company's pay-for-performance compensation system is linked to its wage administration program and performance management program, both of which include performance reviews.

As a result, the significance of the control of performance appraisals and remuneration levels relates are the aforementioned. Therefore, option (b) is correct.

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Which secondary effect of advertising refers to a change in the customer’s opinion of the product over a period of time?

Answers

The Carryover Effect in Advertising is the rate at which the effectiveness of an advertising campaign diminishes over time

How can you enable your sales team to perform better?
A. by enforcing stringent rules
B. by providing them with training and other supporting material
C. by permitting them the freedom to do whatever they think is right
D. by increasing their pay more often than the rest of the workforce

Answers

Answer: i think its B because it makes the most sense out of them all

Explanation:

The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:
Retained earnings balance at the beginning of the year $ 1,069,000
Net income for the year 355,000
Cash dividends declared for the year 67,000
Retained earnings balance at the end of the year 1,757,000
Cash dividends payable at the beginning of the year 15,000
Cash dividends payable at the end of the year 18,500
What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?
a) $100,500.
b) $3,500.
c) $63,500.
d) $70,500.
e) $67,000.

Answers

Answer:

C. $63,500

Explanation:

With regards to the above, information, the amount of cash dividends paid that should be recorded is computed as;

= Cash dividends payable at the beginning of the year + Cash dividends declared for the year - Cash dividends payable at the end of the year

= $15,000 + $67,000 - $18,500

= $63,500

Therefore, cash dividends paid that should be recorded in the financing section of the statement of cash flow is $63,500

How are payday lenders different from a bank or credit union?

A. Payday lenders usually offer loans at a much lower rate than
banks and credit unions.
B. Payday lenders usually don't require collateral, unlike banks and
credit unions.
C. Payday lenders often offer loans to people who are unable to get a
loan from a bank or credit union.
D. Payday lenders often offer loans for a longer term than banks or
credit unions.

Answers

The difference between payday lenders and a bank or credit union is B. Payday lenders usually don't require collateral, unlike banks and credit unions.

What is payday lending?

Payday lending is a type of short-term borrowing where a borrower receives a high-interest credit based on personal income.

The characteristics of payday lending include:

Small-term loansSmall amounts of money are involvedAvailable at short noticeInterest rates are high.

Thus, the difference between payday lenders and a bank or credit union is B. Payday lenders usually don't require collateral, unlike banks and credit unions.

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Answer: the answer is C (PAYDAY LENDERS OFTEN OFFER LOANS TO PEOPLE WHO ARE UNABLE TO GET A LOAN FROM A BANK OR CREDIT UNION!!!)

Explanation: I just took the test!

12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided services on account, $4,200.​

Answers

1. Paid Office Station Co. for part of the debt incurred on April 5, $1,200.

Debit: Accounts Payable - Office Station Co.$1,200

Credit: Cash $1,200

2. Provided services on account, $4,200.

Debit: Accounts Receivable $4,200

Credit: Service Revenue  $4,200

To pay off the remaining balance owing to Office Station Co., a debit is sent to the accounts payable account. To account for the cash outflow, the Cash account is credited. This journal entry records the settlement of a portion of the debt incurred on April 5 with Office Station Co.

The acknowledgment of revenue for services rendered to a client on the account is represented by this journal entry. To reflect the increase in the amount due by the client, the Accounts Receivable account is debited.

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The complete question is probably

Write journal entries

12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided services on account, $4,200.​

Prepare a comparative income statement for any company extracting their P&L statement for the years 2020-21 & 2021-22. Analyse the incline and decline in the different elements in the P&L Statement and provide detailed insights.

Answers

Answer:

this is my own answer

Explanation:

hi

How to Prepare a Comparative Income Statement?

Step 1: Specify absolute figures of items like goods sold, net sales, selling expenses, etc., relating to the accounting period under consideration for analysis.

Step 2: Calculate the absolute change in the items mentioned in the income statement.

Explain how each of the following events would affect the equilibrium price and quantity of new textbooks. (Explain which curve(s) would shift and in which direction(s).)​

Answers

The events that would affect the equilibrium price and quantity of new textbooks include changes in production costs, shifts in student enrollment, changes in government policies etc.

How do these events impact the equilibrium price and quantity?

The changes in production costs will shift the supply curve of new textbooks. If production costs increase, the supply curve would shift to the left resulting in decrease in the equilibrium quantity and an increase in the equilibrium price.

But if production costs decrease, the supply curve would shift to the right leading to an increase in the equilibrium quantity and a decrease in the equilibrium price of new textbooks.

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Nathan has a gross pay of $35,000. He has earned a tax credit of $3,000 and paid $2,500 in taxes. What is his taxable and disposable income? Nathan’s taxable income is --1--- and his disposable income is--2--- .
{1.$35,000\$32,000\$32,500}
{2.$29,000\$32,000\$29,500}

Answers

Nathan's taxable income is $29,500 and his disposable income is $35,500.

How to calculate Nathan Taxable and Disposable income

Nathan's taxable income can be calculated by subtracting the tax credit from his gross pay and then subtracting the taxes paid.

Taxable income = Gross pay - Tax credit - Taxes paid

Taxable income = $35,000 - $3,000 - $2,500

Taxable income = $29,500

Nathan's disposable income can be calculated by subtracting the taxes paid from his gross pay and adding the tax credit.

Disposable income = Gross pay - Taxes paid + Tax credit

Disposable income = $35,000 - $2,500 + $3,000

Disposable income = $35,500

Therefore, the correct answers are:

Nathan's taxable income is $29,500.

Nathan's disposable income is $35,500.

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Where should a user store frequently used icons on a computer?

Answers

Shelf or Taskbar. Located at the bottom of your computer

Answer: they should be loaded on the tool bar  

Explanation:

for quick and easy access  

What benefits does target receive from its store brand?

Answers

Target has gained many benefits from its store brands. Target's focus on its store brands has allowed it to establish itself as being “cheap chic.” It has also allowed Target to increase its overall profits. By promoting and improving its store brands, Target has been able to make their brands well known and reliable.

Bagrov Corporation had a net decrease in cash of $17,000 for the current year. Net cash used in investing activities was $59,000 and net cash used in financing

activities was $45,000. What amount of cash was provided (used) in operating activities?

Answers

Answer:

Cash provided under operating activities= $87,000

Explanation:

The cash flow statement is that which provides information on the source(s) of use of cash generated by the business. It provides the information into there activities of operating, investing and financing.

The net cash position= Cash from operating + investing + financing

let the cash from operating be represented by y

-17,000 = y-59,000 -45,000

y =-17,000+59,000 +45,000

y=87 ,000

Cash provided under operating activities= $87,000

Which printing option results in a Word document with images of the slides and an area to take notes?
outline
full slide
handout
notes page

Answers

The printing option outcomes in a Word document with pictures of the slides and a region to take notes handout.  

The option (C) is correct.

It has three slides on the page as well as lines for crowd notes. One more kind of gift is the Notes Pages. The notes page incorporates the slide as well as your speaker notes. At the point when you intend to utilize the notes page as a gift.

Gifts are supporting materials you appropriate previously, during, or after your show. A present could contain messages, outlines and diagrams, pictures, or different components. While not generally important, if a moderator decides to utilize a gift, it should be very much arranged and created.

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Before protecting a worksheet to avoid people from editing the formulas, you must ________.

unlock the input cells
lock the input cells
unlock the formula cells
lock the formula cells

Answers

Answer:

Lock the Formulas Cells

Explanation:

Now, go to lock the selected cells with formulas. To do this, press Ctrl - 1 to open the Format Cells dialog again, switch to the Protection tab, and check the Locked checkbox. The locked option prevents the user from overwriting, deleting or changing the content of the cells.

What is a method that managers can use to motivate employees?
1.Encouraging employees to specialize
2.Investing in new technology
3.Offering performance-based financial rewards
4.Sharing customer information with employees

Answers

A method that managers can use to motivate employee is offering performance-based financial rewards.

What is motivation?

Motivation is the process that guides and keeps people towards ensuring set goals are meet. It is what keeps one going, which act as encourage and spur one to do more.

Managers always want an improved performance from their employees. One of the method they use is to offer them performance-based financial rewards if they are able to meet and exceed certain targets.

Hence, a method that managers can use to motivate employee is offering performance-based financial rewards.

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a company is analyzing a make-versus-purchase situation for a component used in several products, and the engineering department has developed these data: option a: purchase 10,000 items per year at a fixed price of $8.50 per item. the cost of placing the order is negligible according to the present cost accounting procedure. option b: manufacture 10,000 items per year, using available capacity in the factory. cost estimates are direct materials

Answers

Cost of purchasing is $85000 and Cost of manufacturing is $95000 at 10,000 items per year at a fixed price of $8.50 per item.

given data:

items per year = 10,000

fixed price per item = $8.50

Cost of purchasing :-

10000*8.50 = $85000

Cost of manufacturing :-

10000 *(5 +1.50+3 ) =  $ 95000

The cost of purchasing refers to the expenses associated with acquiring goods or services from a supplier. This cost can include the purchase price, shipping and handling fees, taxes, duties, and any other costs incurred during the procurement process. For businesses, the cost of purchasing is a critical factor that can impact the company's profitability, competitiveness, and ability to meet customer demands. As such, companies must carefully evaluate their purchasing options and negotiate favorable terms with suppliers to minimize the cost of purchasing.

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1. Explain your understanding of management.

Answers

Answer: Management means directing and controlling a group of people or an organization to reach a goal. Management often means the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.

Hope it helped! if it did please mark me brainliest!!

tysm

Answer:

For me, there are two different meanings for the word management, it is either:

1. it is the process of dealing with or controlling things or people.

OR

2. it is the administration of an organization, whether it is a business, a non-profit organization, or a government body.

Penguin Island produces two goods: ice and genetically engineered fish. Due to recent technological advances, its economy has experienced growth in both ice and fish production. Show this growth in relation to the production possibilities frontier (PPF).

Which of the following economic activities have led to an increase in the standard of living worldwide over the last century?

a. investments in education and infrastructure
b. increases in international trade
c. increases in farm productivity
d. increases in technology

Answers

Answer:

1. Point on x-axis will increase and so will the point on the y-axis

2. All of the above

Explanation:

1. The Production Possibilities Frontier shows the amount of resources needed to produce different quantities of two goods. It therefore allows one to see the trade-off in resources for producing more of one good vs the other.

When a factor of production leads to more efficiency in the production of a good, the frontier will increase. In this scenario, there has been a growth in technology which means that more of both goods can be produced. This will increase the PPF on both axis. (Refer to attached file).

2. All of the listed options have led to increases in the standard of living in the last century. More education means people can get better jobs and build more infrastructure. International trade has increased market access and increased wealth. Farm productivity is better so more people can be fed and improvement in technology is the main driver for growth.

Penguin Island produces two goods: ice and genetically engineered fish. Due to recent technological advances,

The PPF would shift from PPF1 to PPF2 due to technological advancement.  

All the given factors have greatly led to an increase in the standard of living worldwide over the last century.

What is the production possibility frontier?

PPF is used to graphically present the resources used by the economy for the production of two goods with the technology present in the nation.

Hence, with an increase in technology for both goods, PPF would shift rightwards demonstrating the improvement in production techniques in the economy.

What factors are contributing to increased living standards?

The economies globally have widely contributed to education and infrastructure, which increased employment and higher pay opportunities to people for improving their living standards.

The enhancement in technology also provided various options for international trade and agricultural productivity, which again added to a higher standard of living.

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Penguin Island produces two goods: ice and genetically engineered fish. Due to recent technological advances,

Ms. Parker would like to have $99.000 buy a new car in 8 yearsTo accumulate $99,000 in years, how much should she invest monthly in a sinking tund with 3% Interest compounded monthly?

Answers

Answer:

$1,161.23

Explanation:

For computing the monthly payment we need to apply the PMT formula i.e to be shown in the attachment below:

Given that,  

Present value = $99,000

Future value or Face value = $0

RATE = 3% ÷ 12 months = 0.25

NPER = 8 years × 12 months = 96 months

The formula is shown below:  

= PMT(RATE;NPER;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula, the monthly payment is $1,161.23

Ms. Parker would like to have $99.000 buy a new car in 8 yearsTo accumulate $99,000 in years, how much

A regular checking account commonly earns interest true or false

Answers

Answer: False

Explanation: Traditionally, checking accounts are not interest-bearing accounts as savings accounts are, as they're designed for short-term cash that you'll spend soon. Savings accounts are better-known for earning interest, but these accounts ordinarily limit how often you can make certain withdrawals from the account.

Hope this helps! Brainlist?

Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking deposits and that banks hold no excess reserves and households hold no currency. a. What is the money multiplier

Answers

Answer:

1. Money multiplier 10

2. Money supply 1000 billion dollars.

3. change in reserves 500 billion dollars

4. Change in money supply 500 billion dollars

Explanation:

1. Calculation to determine the money multiplier

Money multiplier = 1 / 0.1

Money multiplier= 10

2. Calculation to determine The money supply

Money supply =10 x 100 billion dollars

Money supply = 1000 billion dollars.

3. Calculation to determine the change in reserves and the change in the money supply

First step is to calculate the money multiplier w​money multiplier= 1/ 0.20 = 5

Now let calculate the change in reserves

change in reserves = 100 billion dollars x 5

change in reserves = 500 billion dollars

4. Decline in the money supply =1000 billion dollars - 500 billion dollars = 500 billion dollars.

It’s a good idea to explain any lengthy gaps in your employment history. Choose the sentence that best explains Michele’s recent lapse in employment.

a.
Michele’s sentence works best for to explain the gap in her employment.

b.
I previously held a position as inventory control associate at Bedrooms & Beyond, until I was laid off at the beginning of the COVID-19 pandemic lockdown in Philadelphia. Everyone was laid off, but I was one of the last to go. I requested for furlough, but they said they could not give that to me.

c.
I previously held a position as inventory control associate at Bedrooms & Beyond, until I was laid off at the beginning of the COVID-19 pandemic lockdown in Philadelphia.

d.
I was laid off from my last inventory control position for reasons beyond my control.

Answers

The best sentence that explains Michele's recent lapse in employment is: I previously held a position as inventory control associate at Bedrooms & Beyond, until I was laid off at the beginning of the COVID-19 pandemic lockdown in Philadelphia. Everyone was laid off, but I was one of the last to go. I requested for furlough, but they said they could not give that to me.

Everyone was laid off, but I was one of the last to go. I requested for furlough, but they said they could not give that to me.This sentence provides a clear and concise explanation for the gap in Michele's employment history.

It mentions the specific circumstances of being laid off due to the COVID-19 pandemic lockdown and the fact that everyone in the company was laid off. It also mentions Michele's attempt to request a furlough but being unable to receive it.

This explanation demonstrates that the employment gap was beyond Michele's control and highlights the impact of external circumstances on her employment situation.

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CHECKPOINT QUESTION
Which of the following statements about gossip in the organization is TRUE?
Only small amounts of information are carried on the grapevine of workplace
gossip.
Employees rely on each other for important information more than they rely on
their bosses.
Managers are excluded from using the grapevine to communicate or respond to
messages.
The grapevine can be used to prevent individual agendas and potential
miscommunications.

Answers

Answer:

Only small amounts of information are carried on the grapevine of workplace

gossip.

Explanation:

Grapevine is referred to as the circulation of unofficial information and rumors. Most of the communications in an organization is carried out through grapevine. It is informal communication of messages and information and also gossips in an organization. The grapevine communications carries more of accurate information than gossips. Only a small portion of the information consists of gossips in the functional grapevine.

Leondra looks over her Algebra homework and says to herself ""I’m probably not going to be able to do this - I’m just not a math person."" Leondra is exhibiting a

Answers

Answer:

Fixed mindset

Explanation:

Mindset could be explained as an individual's psychological state which often transcends into how we perceive challenges, what we can do and what we can't. Usually the ability to solve a puzzle, face and conquer a challenge starts and ends with an individual's mindset as it is where either the strength to execute or depression to walkway is derived.

The growth mindset gives individuals who exhibit the trait the strength and morale to face challenges, instead of backing out without trying, they try to find ways of constantly improving at what seems difficult.

On the other hand, the fixed mindset which is what is exhibited by Leandro could be deemed as a rigid type of notion whereby an individual believes all he knows and all he can do are already fixed, hence anything aside those cannot be successfully executed this kind of individuals fail to try new challenges.

Carlisle Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 557, which was recently completed. Direct materials used cost $6,300. There were 180 direct labour hours worked on this job at a direct labour wage rate of $20 per hour. There were 75 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used. What is the total manufacturing cost of Job 557? Select one: OA. $6,555 OB. $2,400 OC. $3,600 OD. $12,300​

Answers

The total direct labor cost is 180 direct labor hours * $20 per hour = $3,600. The total overhead cost is 75 machine hours * $32 per machine hour = $2,400. So the total manufacturing cost of Job 557 is $6,300 (direct materials) + $3,600 (direct labor) + $2,400 (overhead) = $12,300.

What is an overhead?

Overhead refers to the indirect costs associated with manufacturing a product or providing a service. These expenses are indirect because they cannot be clearly connected to a single unit of goods or service. Overhead expenditures include rent, utilities, insurance, property taxes, and general administrative expenses such as salary for non-production workers. Overhead expenditures are often unrelated to the manufacturing process yet are required for the firm to function. To correctly establish the cost of a product, overhead expenditures must be allocated to the product on some basis, such as machine hours or direct labour hours. This allocation is frequently handled using a predefined overhead rate, which is then utilized to allocate overhead to each task or unit of output.

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Which of these statements is INCORRECT regarding the federal income
tax treatment of life insurance?
A. Entire cash surrender value is taxable
B. Premiums are normally not tax deductible
C. Cash dividends are normally not taxed
D. Proceeds are received tax-free if there is a named beneficiary

Answers

The statement that is INCORRECT regarding the federal income tax treatment of life insurance is that "Entire cash surrender value is taxable". The correct option is A.

In general, the proceeds of a life insurance policy are received tax-free if there is a named beneficiary. The beneficiary receives the proceeds free of federal income tax. The entire cash surrender value is not taxable, this statement is INCORRECT.

Premiums are normally not tax deductible, but cash dividends are normally not taxed. Cash dividends can be taken in cash or used to purchase more insurance. However, interest is taxable if the dividends exceed the premiums paid.The value of the policy (minus the premiums paid) can accumulate in a cash value account and can be withdrawn or borrowed by the policyholder at a later date.

The amount of cash value that is withdrawn and exceeds the amount paid for premiums is taxable as income. The gains earned by the policy owner can be tax-deferred until the funds are withdrawn. The correct option is A.

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The operating budget provides a roadmap for financial plans for a short-term, future period. What is a typical “future period” for an operating budget?

Answers

An operating budget is a financial statement that outlines the organization's expenditures and revenues for a specific period.

The operating budget is typically for a fiscal year, which is usually twelve months. The future period for an operating budget is usually a fiscal year or less than a year. The operating budget is critical because it establishes guidelines for financial activities and operations in an organization. It provides a roadmap for financial plans for a short-term, future period, which typically begins on January 1st and ends on December 31st.

An organization creates an operating budget to aid in the allocation of resources and expenditures to achieve its objectives for a given period. A typical operating budget is for a fiscal year. A fiscal year is the period when an organization prepares its financial statements. It is usually 12 months, but it may be shorter or longer depending on the organization. An operating budget typically covers one fiscal year; however, it may be longer or shorter based on the organization's preferences.

The future period for an operating budget is frequently updated to reflect the company's current situation and financial standing. It takes into account the actual results of the previous period and the estimated expenditures and revenues for the upcoming year to develop the operating budget for a future period.

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