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1 year ago

If the cash budget showed a projected cash shortage, the company would most likely

1 answer:

8 0

If the cash budget showed a projected cash shortage, the company would most likely c. arrange to borrow the necessary cash for that period.

In the field of business, companies face situations where there is a shortage in revenue. This may happen due to a new strategy implementation or due to a new project being launched due to which cash shortage in the company.

When a company faces a situation where there is a cash shortage, the company then takes a loan or borrows some money for that time being. Usually, if the money that is to be borrowed is in a large amount, then a contract is to be made, and signatures are taken from both parties.

When a cash budget is short, the company has no option but to borrow money in order to keep the process going.

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An estimated demand curve does not necessarily match actual data perfectly because A. it is not possible to accurately calculate

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Answer:

C. some factors that are not measured or observed may affect the curve.

Explanation:

a lot of unforeseen circumstances might occur. these occurrences would not be measured in the estimated demand curve. this would lead to the estimated demand curve not matching the actual demand curve.

for example, the factors affecting the demand for bread are ; price, income, price of a substitutes. these are included in estimating the demand curve for bread. Assume that a study comes out stating that bread is harmful to the health.this reduces the demand for bread. this study wasn't anticipated and included in estimating the demand curve. as a result, the actual data would differ from the estimated data

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3 years ago

It is _______ for a company to issue equity than debt; it is ________ for an investor to buy equity in a company than debt in th

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Answer:

It is safer for a company to issue equity than debt

It is riskier for an investor to buy equity in a company than debt in the same firm

Explanation:

If company issues debt that it has to make fixed interest payments, thus even if company is making losses, it has to pay interest which is not in case of equity. Hence, it is riskier option for the company to raise debt.

On the other, if investor in debt, then he will get fixed interest, thus debt option is relatively cheap than equity for investor

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3 years ago

Mr. Morgan earns $38,000 a year as a salesperson and a 5% commission on all his sales. He has a mortgage of $910 a month and pay

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the mortgage.

Explanation:

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3 years ago

Read 2 more answers

If revenues are recognized only when a customer pays, what method of accounting is being used?Recognition basisAccrual-basisMatc

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Answer:

The correct answer here is Cash basis.

Explanation:

One of the methods of recording accounting transactions for income and expenses is cash basis accounting , where the transactions are only recorded when income is received in cash or expenses are paid in cash. This accounting method is not accepted by GAAP (Generally accepted accounting principle ) and IFRS ( International financial reporting standards ) because this method violates the income ( revenue ) and expense recognition principle.

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3 years ago

Lupine Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. T

Anna [14]

Answer:

Allocated MOH= $420

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (253,600/31,700) + 6

Predetermined manufacturing overhead rate= $14 per machine hour

Now, we can allocate overhead to Job L716:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14*30

Allocated MOH= $420

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3 years ago