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3 years ago

A firm creates value by?

Business

1 answer:

djverab [1.8K]3 years ago

6 0

Answer:

Paying more cash to its creditors and stockholders than the amount it received from them (1)

Explanation:

Stockholders are the primary owners of the company who have invested their money in the company's shares i.e equity holders and expect a reasonable returns higher than their investment.

Creditors are money lenders like banks i.e debt holders who have given loan or bank overdraft to the company and expecting the company to pay back at an agreed date with interest.

A firm creates value by being able to invest money sourced from various investors into a viable project that guaranteed greater returns than the weighted average cost of capital.

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Clever Computers has a five-day workweek and pays the office staff $3,050 each week. If the month ends on a Thursday, the adjust

Oksana_A [137]

Answer: The correct answer is b.$3,050.

Explanation: Clever Computers has a five-day workweek and pays $3,050 each week. The payment will only occur at the end of the workweek when the staff have earned the wages. However, the month ended on Thursday, meaning that the staff have only worked for four-day workweek. They have therefore earned $2,440 (4/5*$3,050) at the end of the month but that payment is not due because the 5-day workweek has not been completed. The complete journals the company would raise would be Debit Wages (overhead) $2,440, Debit Wages receivable $610 and Cr Wages payable $3,050.

When it is next month after the five-day workweek has been completed, the company would Dr Wages Payable $3,050 and Credit Cash $3,050 to make the payment.

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3 years ago

Use the following data to determine the total amount of working capital from the Banner Auto Supplies Balance Sheet for December

Komok [63]

Answer:

b. 240,000

Explanation:

Calculation to determine the total amount of working capital

First step is to calculate the Current assets

Using this formula

Current assets = Cash + Accounts receivable + Inventory + Prepaid insurance

Let plug in the formula

Current assets= $70,000 + 100,000 + 140,000 + 80,000

Current assets= $390000

Second step is to calculate the Current liabilities using this formula

Current liabilities = Accounts payable + Salaries and wages payable

Let plug in the formula

Current liabilities= $130,000 + 20,000

Current liabilities= $75,000

Now let calculate the working capital using this formula

Working capital = Current assets - Current liabilities

Let plug in the formula

Working capital = $390,000 - 150,000

Working capital = $240,000

Therefore the Working capital is $240,000

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3 years ago

You can edit contents of a cell by:

tatuchka [14]

Answer:

All of the above

Explanation:

I took the k12 test

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3 years ago

Sheridan Company uses the perpetual inventory and the gross method. On March 1, it purchased $83000 of inventory, terms 2/10, n/

Gemiola [76]

Answer:

b. inventory for $1516.

Explanation:

Term 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale and net credit period of 30 days.

Purchase value = $83,000

Purchases return = $7,200

Amount Due = $83,000 - $7,200 = $75,800

As the $75,800 is paid within discount period, so discount will be given to customer

Discount = $75,800 x 2% = $1,516

Payment Made = $75,800 - $1,516 = $74,284

Gross method does not record the discount value it recognise the inventory at its gross amount and discount is adjusted in the inventory account after that.

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3 years ago

An exclusive right to display a word, slogan, symbol, or emblem that distinctively identifies a company, product, or service is

MAXImum [283]

It is referred to as a Trademark

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3 years ago