Assume the Returns on Stock X Were Positive in January,February,April,July,and

question 5

Multiple Choice

Assume the returns on Stock X were positive in January,February,April,July,and November.The other months the returns on Stock X were negative.The returns on Stock Y were positive in January,April,May,July,August,and October and negative the remaining months.Which one of the following correlation coefficients best describes the relationship between Stock X and Stock Y?

• A) -1.0
• B) -0.5
• C) 0.0
• D) 0.5
• E) 1.0

Assess the impact of personal partner insolvency on the partnership liquidation process.

Distinguish between items recorded and not recorded by an accountant during partnership liquidation.

Understand the difference between fiscal and calendar years in accounting.

Comprehend the principles of cash and accrual basis of accounting.

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Definitions:

Discounted Note

A financial instrument, such as a promissory note, that is sold or bought at less than its face value. The discount represents the interest or fees earned by the buyer of the note.

Interest Expense

The cost incurred by an entity for borrowing funds, typically reported on the income statement.

Notes Payable

Written promises to pay specified sums of money at future dates, representing liabilities or debt owed by a company.

FICA Tax

Federal Insurance Contributions Act tax, a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.