Answer:
Going concern assumption
Explanation:
The going concern principle is the assumption that an entity will remain in business for the foreseeable future.
This assumption holds in the absence of significant information to the contrary such as inability to meet obligations as they fall due
<span> Any distribution of cash or property to the owners of a corporation is known as a corporate </span>distribution<span>. </span><span>
The tax treatment of corporate distributions at the shareholder level does not depend on: </span>The character of the property being distributed.
<span>But it depends on the earnings and profits of the corporation, the basis of stock in the hands of the shareholder and whether the distributed property is received by an individual or a corporation.</span>
Answer:
b) Considered to be a direct variable cost
Explanation:
Direct costs are expenditures that can be traced to a specific product, project, or service. It is a cost component that arises due to the production of a particular good or service as opposed to a general expense. Direct costs contrast indirect cost that covers a variety of items, such as administration.
Variable costs are the expenses that change with production volume. An increase in production leads to an increase in variable costs. Variable costs, therefore, have a direct relationship with the output level.
Belts, in this case, are a direct variable cost because
- The belt expense is traceable directly to the production of cars. It is a cost incurred only when a car is being produced.
- The cost varies with the number of cars produced. The expenses will change with changes in the production of cars.
Answer: Reference group is very important in purchasing the items listed above, this is because in our society today, everyone wants to use the best product, and products that are recognized for its customer's satisfaction.
Reference group is important because they influence the decision of consumers when trying to purchase a particular product, reference group can be friends, experts, family or neighbors who an individual can approach to seek for more information about a particular product, especially when purchasing a product we have never used before, this is like seeking for consumer reviews.
We believe that a product with more customer review is safe to purchase, for example while getting a new car or iPod we might want to ask for its longevity, how expensive the spare parts are if spoilt and so on, we often based our decision on what most people think about it.
2. Yes their influence will affect the brand or model purchased, this is because while seeking the help of a reference group they tend to recommend some best brand in the market on which the consumer make the final decision on.
3. Their influence on the items listed above can be informational this is because when a reference group influences a consumer behavior or decision based on giving fact or information on the social, financial and performance risk of a particular product, especially in a situation where the consumer has little or no knowledge about the item to be purchased for example like the car, iPod and others, this kind of influence is informational.
Answer: Please see answer below in the explanation column
Explanation: Zoo Inc company's cash budget for November indicsating borrowing is given by
Cash balance, beginning $ 21,000
Add cash receipts 117,000
Total cash available--(Cash balance + cash receipts)= $138 ,000
Less cash disbursements $ 86,000
Excess (deficiency) of cash available over disbursements (The beginning balance plus the expected cash receipts less the expected cash disbursement) ($ 21,000+$117,000)--$86,000 = $52,000
Financing ($65,000 − $52,000)= $13,000
Borrowings ----$100,000
Cash balance, ending ----$100,000+ $52,000 = $152,000(Burrowings + Excess cash available over disbursements)
