Net Income Is $34,000

question 6

Multiple Choice

Net income is $34,000.Beginning owner's capital is $29,000.Ending owner's capital is $55,000.No capital contributions were made during the year.What was the amount of drawings?

• A) $18,000
• B) $8,000
• C) $60,000
• D) $5,000

Grasp the concept of the Arbitrage Pricing Theory (APT) and the assumptions underlying multifactor models.

Apply multifactor models to compute expected returns on portfolios, considering various risk premiums and betas.

Identify arbitrage opportunities by comparing the expected returns and the actual returns of portfolios.

Understand the implications of market beta, SMB beta, and HML beta on stock returns.

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Definitions:

Credit Cards

Financial instruments issued by banks or financial institutions allowing cardholders to borrow funds at the point of sale, subject to repayment terms and interest rates.

Nonsufficient Funds Checks

Checks that cannot be processed due to the drawer’s account lacking sufficient funds, leading to a bank refusal to honor the check.

Collections

The process of pursuing payments of debts owed by individuals or businesses.

FOB Shipping Point

A term in shipping contracts indicating that the buyer is responsible for the goods, including the risk of loss and transportation costs, once the goods leave the seller's premises.