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2 years ago

Is it more common for a firm to fail due to lack of sales or poor financial management? multiple choice question.

1 answer:

8 0

When it comes to lack of sales or poor financial management, the reason why most firms fail is a. poor financial management.

<h3>Why do companies fail?</h3><h3 />

There are several reasons why a company can fail such as budgetary issues, and a lack of concrete goals to guide the activities of the company.

Most of these things stem from poor financial management however. Think of it this way, if a ship has a bad captain, then the chances of the ship sinking increases.

Poor financial management would lead to money not going to the right expenses which means that the business will make a lot of losses instead of profit and so will close.

In conclusion, between lack of sales and poor financial management, poor financial management is worse.

Find out more on businesses failing at brainly.com/question/13371882

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The following totals for the month of April were taken from the payroll register of Durbin Company. Salaries $12,000 Social secu

Katarina [22]

Answer:

debit to payroll tax for $798

Explanation:

From the given information:

The following totals for the month of April were taken from the payroll register of Durbin Company.

Salaries $12,000

Social security and Medicare taxes withheld 550

Employees federal income taxes withheld 2500

Medical insurance deductions 450

Federal unemployment taxes 32

State unemployment taxes 216

The objective is to determine the journal entry to record the payroll tax expense on April 30

Let;s recall that for taxes charged in employers; the following taxes will be considered:

Social security and Medicare taxes

Federal unemployment taxes

State unemployment taxes

Thus;

The journal entry to record the payroll tax expense on April 30 can be prepared as:

Account Debit Credit

Payroll tax expense 798

Social security and Medicare taxes 550

Federal unemployment taxes 32

State unemployment taxes 216

Hence;

The journal entry to record the payroll tax expense on April 30 would include a debit to payroll tax for $798

4 0

3 years ago

Explain demand of money

krek1111 [17]

Answer:

In monetary economics, the demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits rather than investments. It can refer to the demand for money narrowly defined as M1 (directly spendable holdings), or for money in the broader sense of M2 or M3.

Explanation:

7 0

3 years ago

Loop 1604 Inc. has prepared a static budget at the beginning of the month. At the end of the month the following information is

Charra [1.4K]

Answer:

Flexible budget variance for Sales Revenue = $3,960 Favorable

Explanation:

Provided budget is static budget, firstly for calculating flexible budget variance for Sales Revenue.

For this flexible budget is made of same level of quantity as of actual level.

therefore Flexible budget sales = 990 units @ $70 per unit price will be same as of static budget.

Therefore Variance = Standard Flexible Budgeted Sales - Actual Sales

Standard Flexible Budgeted Sales = 990 $\times$ $70 = $69,300

Actual Sales Revenue = 990 $\times$ $74 = $73,260

Since actual revenue is more than budgeted sales this is favorable.

Flexible Budget Variance for Sales Revenue = $69,300 - $73,260 = $3,960

Since actual revenue is more than budgeted revenue therefore this is a favorable variance.

Flexible budget variance for Sales Revenue = $3,960 Favorable

3 0

3 years ago

If nominal gdp is $12 trillion and real gdp is $10 trillion, then the gdp deflator is

Juli2301 [7.4K]

<span>If nominal gdp is $12 trillion and real gdp is $10 trillion, then the gdp deflator is: </span><span>120, and this indicates that the price level has increased by 20 percent since the base year.</span>
<span>
GDP deflator reflect the effects of new prices to the product that produced domestically.
It calculated with this equation:

GDP Deflator = GDP Nominal/Real GDP x 100

= 12 Trllion /10 Trillion x 100
= 120</span>

6 0

3 years ago

A firm's operating cash flow (OCF) is defined as ________. A. gross profit minus operating expenses B. EBIT times one minus t

Sloan [31]

Answer:

B. EBIT times one minus the tax rate plus depreciation

Explanation:

The formula to calculate the operating cash flow is given below:

Operating cash flow = EBIT + Depreciation expenses - Income tax expense

The EBIT stands for earning before interest and taxes

And, EBIT - income tax expense = Earning after taxes (EAT)

The operating cash flow is the amount which is left after paying all the expenses related to cash

6 0

3 years ago