Answer:
Which of the following are ways in which to calculate the benefit of selecting one alternative over another?
-An analysis that just looks at the relevant costs/benefits and identifies those that are differential
-the difference between the net operating income for the two alternatives
-an analysis that looks at all costs and benefits and identifies those that are differential
Explanation:
The beginning of wisdom in using accounting for decision-making is a clear understanding that the relevant costs and revenues are those which as between the alternatives being considered are expected to be different in the future.
Answer:
C. A foreign consumer's purchase of domestic goods
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export
Net Export = export - import
A foreign consumer's purchase of domestic goods would be included in export.
I hope my answer helps you
Answer: 1. B. Petty Cash
2. D. Petty Cash
3. D. Debit petty cash and credit cash
Explanation:
1. When creating the Petty Cash fund, Cash is credited because money is being removed from it. It is then put into the Petty Cash account hence a debit.
2. When taking money from Petty Cash, it is an asset and so is credited to reflect the outflow.
3. Similar to the transaction in question 1. You are taking money from cash account to.put in Petty Cash so the right procedure is to debit Petty Cash and credit Cash.
Answer:
a. ABC Inc.
Explanation:
The degree of financial leverage is expressed by the following formula,
= 
The ratio represents the relationship between net operating profits and profits after financial fixed costs.
Higher the degree of financial leverage, higher will be the financial risk.
In the given case, ABC Inc.'s degree of financial leverage is higher which suggests that ABC has employed more of debt in it's financial structure owing to which higher fixed cost obligations in the form of interest payments have been created.
Thus, ABC Inc. will have a greater financial risk.
