According to the math PhD’s hired by the investment banks and credit rating agencies, huge amounts of risk disappeared when risky subprime loans were pooled together in a Collateralized Debt Obligation (CDO). The model showed that although some subprime loans would default at the same time, not all of them would default at the same time with the chances of 2/3 of the subprime loans defaulting at the same time being highly improbable, allowing the  CDO to be split into two tranches, a safer AAA rated 2/3 piece and a risky 1/3 piece, which would bear the first losses if and when loans in the pool defaulted. (a) Was this an innocent mistake, which surprised the banks, rating agencies, and investors or was it an intentional ruse, which generated phantom profits and bonuses as it sowed the seeds of financial destruction?  Why or why not? (b) Do U think the events would have unfolded differently if the financial institutions that made these subprime loans, and the Wall Street IB’s that pooled/securitized them and sold them to their clients, had been required to keep them in their portfolio?  Why or why not?

A note is dishonored when it is not fully paid at maturity. 

An aging of a company’s accounts receivable indicates that $14,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a

A customer charges a treadmill at Annie’s Sport Shop. The price is $4,000 and the financing charge is 9% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a finance charge is added to the customer’s account. The accounts affected by the journal entry made by Annie’s Sport Shop to record the finance charge are  

Jake’s Market recorded the following events involving a recent purchase of merchandise: Received goods for $60,000, terms 2/10, n/30. Returned $1,200 of the shipment for credit. Paid $300 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company’s inventory increased by

Account receivable is recorded under the Liability section of the balance sheet.

Gross profit represents the merchandising profit (Revenue-COGS) of a company

Labetalol is a drug used to treat high blood pressure. How many chiral carbons does Labetalol have?

Q26. What is the Hallmarlk of heparin induced thrombocytopenia (HIT)? Select all that apply.

Q50. The hypothesis and goal of treatment for heparin induced thrombocytopenia is… Select all that apply