Answer:
c.The transactions would lower Lofland's financial strength as measured by its current ratio but raise Smaland's current ratio.
Explanation:
The current ratio compares current assets with current liabilities showing how many dollars of assets are there for a dollar of liabilities. This tells investors about the company ability to pay short-term obligations or those due within one year.
Current Ratio = Current Asset (CA) / Current Liabilities (CL)
Lofland's NOW = 20 M CA / 10 M CL = 2.00
Lofland's AFTER = 30 M CA / 20 M CL = 1.50
Smaland's NOW = 10 M CA / 20 M CL = 0.50
Smaland's AFTER = 20 M CA / 30 M CL = 0.67
Lofland's current ratio gets lower, so its financial strength as well. Instead, Smaland's current ratio gets higher and It´s financially stronger.
AP courses are part of the College Board organization that requires students to take a rigorous test at the end of the course to potentially earn college credit. A dual credit course on the other hand is an official course at Loyola University Chicago.
Answer:
Incorporates the timing of cash flows.
Explanation:
The Accounting Rate of Return uses accrual accounting in order to determine net income instead of actual cash flows like the NPV, payback period or IRR.
ARR = average annual income / average investment.
For example, an increase in accounts receivable is not considered an increase in net cash flows, but it is considered part of total revenue which increases net income
Answer:
D. To keep our costs low and our prices competitive, Nelson Hardware only offers refunds for unused merchandise returned within 30 days with a receipt.
Explanation:
It is challenging to present bad news effectively. The managers or leaders have to deal with it in their day-to-day activities.
A. The first option is a direct "No". Therefore it is a piece of direct lousy news. It cannot represent an effective way of presenting bad news.
B. The second option tells the situation from the formal way of showing bad news. However, it does not represent any effectiveness.
C. The third choice shows the negative form of acknowledging faulty news. In this case, bad news becomes worse.
E. The last option suggests the same way as the first choice represents.
D. The fourth choice shows courtesy, formal business communication, and effectiveness by reasonably saying all the things. Therefore, when the conversation represents the formal business exercise or application, it presents a piece of bad news effectively.
Answer:
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
Explanation:
Given;
Insurance policy was purchased on July 10 to run for 3 years.
Cost of policy = $72,000
Start date is August 1st. As at 31 December, the policy should have been amortized for 5 months (August to December)
Monthly depreciation = $72,000/(3 × 12)
= $2,000
Total amortization between August and December = 5 × $2,000
= $10,000
Journal entries
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
