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1 year ago

How do financing activities differ from investing activities? (check all that apply.)

Business

1 answer:

Masja [62]1 year ago

7 0

Different from investing activities are financing operations.

Investment activities do not include the exchange of cash for a company's equity; financing activities occasionally do.

Investing operations do not include the exchange of money for debt, although financing activities occasionally do.

Purchases of tangible assets, investments in securities, and sales of assets or securities are all examples of investing activities. If management is investing in the company's long-term health, negative cash flow from investing activities could not be a bad thing.

How does investing work?

Investments are assets that are bought or invested in to increase wealth and set aside cash from hard-earned income or appreciation. The main purpose of an investment is to create an additional source of income or to generate a profit over a certain amount of time.

To know more about Investment activities

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Merando Industries employs a 5-day workweek and a September 30 year-end. Normal weekly wages amount to $41760. If September 30 e

kati45 [8]

Answer:

Debit: Salaries and wages expense $25,056

Credit: Salaries and wages payable $25,056

<em>(To recognize the salaries and wages payable at year-end)</em>

Explanation:

Merando Industries employs a 5-day workweek - this means $41,760 normal weekly wages can be divided by 5 to arrive at the daily workweek wages, which is $41,760 / 5 = $8,352.

If the fiscal year-end is a Wednesday, the company has to recognize a salaries and wages payable of $25,056 due to the following:

the workweek remains 2 weekdays to complete
the company pays at the completion of the 5-day workweek
there is no need to recognize the remaining 2 days next year as salaries and wages payable since the employer may not have control over the employees - they may decide the exit the company

So, the amount to be recognized will be $8,352 x 3 = $25,056.

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3 years ago

Which of the following are ways to motivate employees?

Fantom [35]

Answer:

The Answer is:

Set consequences for poor performance

Show appreciation

Set clear expectations

Be optimistic and positive

Set a vision and goals

Explanation:

I got it right trust

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3 years ago

Which of the following statements is correct?

marusya05 [52]

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4 years ago

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Pare, Inc. purchased 10% of Tot Co.'s 100,000 outstanding shares of common stock on January 2, Year 1, for $50,000. On December

BARSIC [14]

Answer:

$230,000

Explanation:

Calculation to determine What amount should Pare report in its December 31, Year 1, Balance Sheet as investment in Tot

Based on the information given the 10% ownership percentage will be used in Year 1 reason been that the additional 20% purchased in 12/31/Year 1, hence In Year 2, 30% earnings would be recorded in the investment account

Investment account at 12/31/Year 1 =[(Actual ownership percentage*Outstanding shares of common stock 1/2/Year 1)+ 1/2/Year 1 Common stock value ] +(Additional ownership percentage*Outstanding shares of common stock 12/31/Year 1 )+ 12/31/Year 1 Additional shares value]

Let plug in the formula

Investment account at 12/31/Year 1 =

[(100,000*10%)+$50,000]+[(100,000*20%)+$150,000

Investment account at 12/31/Year 1 =($10,000+$50,000)+($20,000+$150,000)

Investment account at 12/31/Year 1 =$60,000+$170,000

Investment account at 12/31/Year 1 =$230,000

Therefore The amount that Pare should report in its December 31, Year 1, Balance Sheet as investment in Tot is $230,000

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3 years ago

According to the signaling theory of capital structure, firms first use common equity for their capital, then use debt if and on

julia-pushkina [17]

Answer:

False

Explanation:

This statement is false because firms are always known for the issuance of debts prior to new stock. This is because they find issuing debt is way cheaper. Because of the cheapness of issuing debt, this method is preferred to using common equity for their capital. The use of debt financing may not signal any message to managers that the future does not look good.

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3 years ago

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