Answer:
4. Fiscal year
Explanation:
Reporting period refers to the period or time covered by a set of financial statements. It is the accounting period in which a given financial report will be covered. It may either be monthly, quarterly or yearly depending on organization's choice.
Now, fiscal year is an accounting period or reporting period that consist of 12 month used for accounting purposes. It is a yearly reporting period made up of 12 consecutive months. It may or may not correspond to the normal calendar year depending on the organization's choice or decision.
Answer:
True
Explanation:
Financial statements reports the impact of all business transactions that occur. These transaction are recorded when they incur and then any necessary adjustment is made in order to reflect the true expense or liability. the adjusting entries are passed to correctly record the transaction.
Answer: e. $43,455
Explanation:
Annual payments are constant so this is an annuity. To calculate the present value of an annuity, multiply the annity by the present value of an annuity factor corresponding with its discount rate and number of periods.
Present value of loan = 9,400 * present value of an annuity factor, 6 years, 8%
= 9,400 * 4.6229
= $43,455.26
= $43,455
Answer:
d. increases; increases
Explanation:
Leverage describes the method of capital acquisition. The term is used mostly to refer to the borrowing of capital. A highly leveraged business is a business that has a high percentage of debts.
Business borrows for expansion or to finance the acquisition of assets. By borrowing, the company increases its capacity to produce and consequently, the possibility of an increase in sales. An increase in output leads to high returns to the shareholders.
Higher returns can only be achieved if the market behaves as expected. If operations do not go as planned, then leverage will leave the shareholder exposed to higher risks. The losses likely to be suffered will be proportional to the level of leverage.
Answer:
$186,980
Explanation:
the operating income is reduced by $186,980
