When Your Equity Position in a Security Is Less Than

question 38

Multiple Choice

When your equity position in a security is less than the required amount, your brokerage firm will issue a:

• A)margin call.
• B)margin certificate.
• C)cash certificate.
• D)limit order.
• E)leverage call.

Recognize the impact of adjusting entries on owner's equity.

Understand the process of adjusting entries for supplies and their effect on net income.

Understand the principles of accrual accounting and the adjustment process.

Identify and calculate interest expense and interest payable for notes payable.

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Definitions:

Active Listening Practices

Techniques that involve fully concentrating, understanding, responding, and then remembering what is being said in a conversation.

Nonverbal Cues

Are communicative actions or signals that don't involve words, often used to convey feelings or intentions.

Active Listening

The practice of fully concentrating on what is being said rather than passively hearing the message of the speaker.

Self-disclosure

The act of revealing personal information, thoughts, and feelings to others, playing a key role in the development of close relationships.