Distinguish between the technical analysis and fundamental approaches of valuation of common stock
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Answer: Technical analysis takes a number of forms, including the interpretation of computer programs, charts, graphs, and mathematical calculations of tracking patterns, all aimed at spotting some trend or direction for stocks. This is no longer a useful approach because it encourages moving in and out of the market rather than buying and holding stocks.
A fundamental analysis determines the value of a share of stock by focusing on such factors as future earnings and dividends, expected levels of interest rates, and the firm's risk. An example is the Price/Earnings Ratio which is a measure of a stock's relative value, found by dividing the price per share by the earnings per share. The higher the ratio the better.
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The process of adjusting the bond interest expense account for any premium or discount is called ____________________
Fill in the blank(s) with correct word
Prepare adjusting entries for the year ended December 31, for each of these separate situations. Assume that prepaid expenses are initially recorded in asset accounts and that fees collected in advance are initially recorded as liabilities.a. The Prepaid Rent account has a debit balance of $8,000 before adjustment, representing a prepayment for four months' rent made on December 1 of the current year.b. One-third of the work related to $18,000 of cash received in advance was performed during this period.c. Unpaid accrued salaries at December 31 amounts to $15,000d. Work was completed for a client on December 31 in the amount of $21,000, but was not previously billed or recorded.e. Estimated depreciation on office equipment is $27,000.
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If an older client wishes to name her only adult son as the person who can make medical care decisions for her, that client should execute:
A) a will. B) a health care directive. C) a trust. D) a resulting trust.
Rebecca is at a loss. A new tax law was recently passed, and she needs to get a better understanding of why the tax law was passed and the intent of the law from an official authority. Describe what authorities may be especially helpful to Rebecca and why she can't find many authorities that discuss the new law.
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