Answer: True
Explanation:
As a result of the Accrual principle in accounting, transactions need to be recorded in the period that they occur in and not in the period they are paid for in.
The interest in Year 1 was incurred in year 1 and so will need to be recorded in year 1 for the period from issuance of the note to the last day of the accounting period.
This means that if the last day of the accounting period is December 31st, the interest for year 1 would have to be accrued from September to December of year 1 and recorded as year 1 interest.
Answer:
Path-Goal Leadership Theory
Explanation:
Path-Goal Leadership Theory -
This theory was given by Robert House , in the year 1971 .
It refers to the type of leadership theory , where the behavior of the leader depends on the performance , motivation and satisfaction of the other employees , is referred to as the path - goal leadership theory .
It is also referred to as path–goal theory of leader effectiveness .
Hence , from the given information of the question ,
The correct answer is Path-Goal Leadership Theory .
Answer:
C.
Explanation:
a) Required around for investment is $500,000
Flotation cost is 2%
Total amount require to issue =
$500,000/ (1-2%)
= $510,204,08
After one year value of investment will be $595,000
Rate of return =
550000/(450000x(1+2%)-1 =19.8%
b) 2.03/(33.35x(1-3.75%) + 9.4 = 15.72%
c) 745000/60% = 1241666.67
That is C. $124,1666,67
Answer:
Net Cash Increase of $115
Explanation:
Receivable Increases by $150 means a cash outflow in receivable by $150 because Increase in Receivable indicates that there are more sale on credit is made than cash received from the customers. So, the outflow in the receivable section is more than the inflow.
Inventory Decreases by $95 means the inventory sold during the period is more than purchases / manufactured. It result in cash inflow as cash is not being held in the form of inventory.
Accounts Payable increases by $225 means that company is making less payment to its suppliers, so that its balance has been increase. Company made more purchases than payment made to suppliers. Net cash Inflow is observed from this.
Common dividend payment of $55 means a direct cash outflow because actual cash has been paid during the year.
Net Effect on Cash = Cash inflows - Cash outflows
Net Effect on Cash = ( Inventory decrease + Accounts Payable increase ) - ( Accounts Receivables increase + Common dividend payment )
Net Effect on Cash = ( $95 + $225 ) - ( $150 + 55 )
Net Effect on Cash = $320 - $205
Net Effect on Cash = $115
Net Cash Increase of $115
