Do plane tickets get cheaper closer to the date of departure?

June 30, 2024 No Comments

A: The price of flights usually increases one month prior to the date of departure. Flights are usually cheapest between three and seven weeks prior to departure. This answer has some exceptions, notably the winter holidays. If the trip is planned during a holiday, the

Does a capital expenditure (CAPEX) immediately affect income statements?

June 30, 2024 No Comments

A: A capital expenditure, or CAPEX, is considered an investment into the business. The money spent is not immediately reported on the income statement; rather, it is treated as an asset on the balance sheet. A CAPEX is deducted over the course of several years

Does the balance sheet always balance?

June 30, 2024 No Comments

A: Yes, a balance sheet should always balance. The name “balance sheet” is based on the fact that assets will equal liabilities and shareholer’s equity every time. The assets on the balance sheet consist of what a company owns or will receive in the future and

A hypothecation agreement allows a broker-dealer to

June 30, 2024 No Comments

A: A. approve the client for “hot” IPOs. B. hold the margined securities in a street name loan – using the securities as collateral for other means (i.e. bank loans and short sales of other customers). C. hold margined securities in mutual fund accounts and

Are depreciation and amortization included in gross profit?

June 30, 2024 No Comments

A: Gross profit is the revenue earned by a company after deducting the direct costs of producing its products. For example, if it costs $15,000 to produce a car, and the car sells for $20,000, the difference of $5,000 is the gross profit on that one car. Gross profit, sometimes referred to as

Are qualified dividends included in ordinary dividends?

June 30, 2024 No Comments

A: Qualified dividends are included with ordinary dividends in box 1a of the Internal Revenue Service Form 1099-DIV; the box includes all ordinary dividends earned from a particular stock. Box 1b shows the number of the dividends in box 1a that are qualified dividends. The

Can a stock have a negative price-to-earnings (P/E) ratio?

June 30, 2024 No Comments

A: Yes, a stock can have a negative price-to-earnings ratio (P/E), but it is very unlikely that you will ever see it reported. Although negative P/E ratios are mathematically possible, they generally aren’t accepted in the financial community and are considered to be invalid or

Can I have more than three original Bills of Lading?

June 30, 2024 No Comments

A: There is no restriction on the number of bills of lading that can be issued, but the number issued must be stated on the bill. Three bills are standard – one for the shipper, one for the consignee, and one for the banker, broker

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