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3 years ago

Which of the following is not true of a budget

Business

1 answer:

Ulleksa [173]3 years ago

6 0

A. Once you finish making your budget, you should not change it.

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Which of the following statements is CORRECT?

Lera25 [3.4K]

Answer:

c. The "apparent," but not necessarily the "true," financial position of a company whose sales are seasonal can change dramatically during a given year, depending on the time of year when the financial statements are constructed.

Explanation:

Financial statements are used to show the financial activity of a business within a given period.

One of the principles of a accounting is periodicity. This requires businesses to report their financial position at regular intervals consistently, and not in an inconsistent manner. So if a business reports their finances twice a year. At year end and at mid year, it is possible that at mid year due to seasonal sales performance will be high and business is perceived to be highly profitable.

But financial report at end of year in the off-season will show low performance.

So for seasonal businesses there can be apparent view of a business during the year that can change dramatically because of time at which reports are made.

3 0

3 years ago

Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value for all of the outstanding shar

bogdanovich [222]

Answer:

c. $524,000 and $250,000

Explanation:

See the attached picture for detailed explanation.

3 0

3 years ago

Read 2 more answers

A sales person who convinces a customer to buy a more expensive product than the customer originally intended is using what sale

shusha [124]

A sales person who convinces a customer to buy a more expensive product than the customer originally intended is using what sales technique C. UPSELLING

8 0

3 years ago

Read 2 more answers

Wheeler’s Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of ea

Westkost [7]

Answer:

See answers below

Explanation:

1 The predetermined overhead rate

= Cost of manufacturing overhead / Cost driver.

Where cost driver

= labor cost / labor rate

= $240,192 / $12.51

= 19,200 hours

Expected overhead

= depreciation + supervisor + supplies + property tax

= 56,500 + 140,000 + 46,400 + 27,750

Total overhead = 270,650

Overhead rate = 270,650 / 19,200

= 14.10 per hour

2. The amount t of applied overhead for of 18,500 actual hours were worked on

= 18,500 hours × $14.10

= $260,850

7 0

3 years ago

Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthl

ElenaW [278]

Answer:

Karim Corp

Cash Budget

July August September

Cash inflows: $20,000 $26,000 $40,000

Cash outflows: ($28,000) ($30,000) ($22,000)

Monthly cash flow: ($8,000) ($4,000) $18,000

Monthly interests: $0 ($76) ($116.76)

Initial cash balance: $8,400 $8,000 $8,000

Ending cash balance: $400 $3,924 $25,883.24

Required bank loan: $7,600 $4,076 $0

Payment of bank loan: $0 $0 ($11,676)

Total $8,000 $8,000 $14,207.24

Explanation:

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

4 0

3 years ago