Answer:
Working Capital will be overstated by the amount of $40.
Explanation:
Of the two the adjusting entries, we need to identify the adjusting entry that affects any element of Working Capital (Current Assets or Current Liability).
Depreciation Entries include : Debit Depreciation Expense (Expense) $10 and Credit Accumulated Depreciation $10.
Cash Dividends Declared Entries include : Debit Dividend (Equity) $40 and Credit Shareholders for Dividends (Liability) $40.
Thus, the Liabilities will be understated due to omission of Cash Dividends Declared Entries.
Subsequently, Working Capital will be overstated by the amount of $40.
Answer:
False .It is called budget
Explanation:
Budget is used to estimate total costs of the project and it includes a detailed estimate of all costs that are likely to be incurred before the project is completed.
This is used for resource planning and control at every stage of the project and if there is any deviation ,this must be clearly justified by the project manager.
Answer:
Spillover cost.
Explanation:
Spillover cost refers to those costs or changes in the value of a certain good that are caused by issues external to the intrinsic characteristics of said good. Thus, for example, external influences such as limitations on oil extraction or the development of electric cars can generate a massive drop in the prices of conventional gasoline cars. Another clear example of this situation is the one described in the question, where a negative change in a certain neighborhood can lower the prices of the houses found there.
Answer:
Alternatives :
1. Bank Overdraft facility
2.Suppliers Credit
Cost determination :
1. Bank Overdraft facility = Interest rate charged on the facility by the bank
2.Suppliers Credit = Opportunity cost of losing the early settlement discount.
Explanation:
If the company can not access sufficient external financing, consider internal sources such as bank overdraft or suppliers credit.
The cost of bank overdraft is evaluated based on the interest rate charged by the bank whilst the cost of the suppliers credit is determined by considering the opportunity cost of losing the cash discount available.
