Answer:
C) Drawer
Explanation:
A drawer is an individual or institution that issues and signs a bill of exchange instructing a bank or drawee to pay the specified amount to the payee. The drawer is the person who writes and signs a cheque to a third party or payee. In a situation where the cheque is to pay oneself, the drawer is the same as the payee.
Rover and Associates is the drawer. The law firm issues the cheques instructing Portris Bank to pay the office manager the amount stated in the cheque. The office manager is an employee of Rover and Associates. The cheque may be written to Rover and Associates. If that is the case, Rover and Associates is first the drawer and the then the payee. Portis bank is the drawee.
Answer:
Both provide jobs in the community
Both contribute to innovation through competition
Answer: The following would be true if the attorney charges Brendon using a retainer: <u><em>the attorney would charge separately for consultation and paperwork.</em></u>
The attorney from the firm will look into the case and thereby charge separately for consultation and paperwork.
<u><em>Therefore the correct option in this case is (b)</em></u>
Answer:
1. Dr Salaries expense 590
Cr Bank 590
2. No journal entry is required
3. Dr Vehicle maintenance 390
Cr Bank 390
Explanation:
1. Entry will be created because salaries are of companies employees.
2. In event 2 there is not mentioned of any company equipment purchase and mostly payment is done through checks in company not through credit cards.
3. This event is solely business event because it is clearly stated of company vehicle.
Answer:
Of course you should be concerned about negative cash outflows resulting from investing or financing activities.
Negative cash outflows for investing activities means that the company purchased more fixed assets or securities this year than the ones that were sold. E.g. the company purchased new equipment for $100,000. Investing activities usually require large amounts of cash.
If financing activities yield negative numbers, it means that either the company paid too much in dividends, or they paid long term debts (e.g. retired bonds or paid back bank loans), but at the same time did not raise enough capital to offset them.
When you are analyzing the finances of a company, cash is king. A company might be very profitable, but it will not survive it its cash flows are negative. If there are enough positive cash flows from operating activities to offset these other cash outflows, then the company should be OK. But if operating cash flows cannot offset them, then the company should be concerned.
