All categories

3 years ago

How do debt and self financing affect the financial statement

1 answer:

6 0

Debt in any form worsens the financial position of the company as it is money that the company does not really have and will eventually have to be repaid. if self financing is the same as introducing capital then this would improve the financial standing of the company as this money does not have to be repaid but is the company's to use

You might be interested in

Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000

Sedaia [141]

Answer:

A) $48,000

Explanation:

Assembly Painting Total

150 employees 100 employees 250 employees

44,000 square feet 36,000 square feet 80,000 sq. feet

Administration expenses $80,000

= 150 x $320 = $48,000 = 100 x $320 = $32,000

Maintenance expenses $100,000

= 44,000 x $1.25 = $55,000 = 36,000 x $1.25 = $45,000

administration expenses = $80,000 allocated based on workers, $80,000 / 250 employees = $320 per employee

maintenance expenses = $100,000 allocated based on square feet, $100,000 / 80,000 sq. feet = $1.25 per sq. feet

7 0

3 years ago

Frank is an employee of Guitar Makers, LLC. Guitar's employee manual states that workers, such as Frank, will be dismissed only

sladkih [1.3K]

Answer:

Contract theory

Explanation:

Contract theory -

It refers to the study of the ability of the people or the organisation to generate and develop the legal agreements is referred to as the contract theory .

The theory is based on economic as well as financial behaviors .

The method is helpful to provide information about the contracts and their provisions along with the memorandums of understanding and letters of intent .

Hence , from the given information of the question ,

The correct answer is Contract theory .

4 0

4 years ago

If the economy experiences a recession with a current spending gap $1,000 below full-employment output, and the marginal propens

gtnhenbr [62]

Answer:

Change in Investment (Government Spending) = $200

Explanation:

Multiplier = k =∆Y/∆I = 1/(1-MPC)

Needed ∆Y = $1000 ; MPC = 0.8

1000/ ∆I = 1 / (1-0.8)

1000/∆I = 1 / 0.2

1000/∆I = 5

∆I = 1000/5

∆I = 200

5 0

3 years ago

The points are only for ppl who have 12 to 20 points

icang [17]

Omg you’re the best thank you so much lol I have questions on my account if u wanna help bahah

4 0

3 years ago

Read 2 more answers

Cheapo Corporation sells products that are poorly made. Marcia, who has never bought a Cheapo product, files a suit against the

galina1969 [7]

Answer:

standing

Explanation:

Standing -

It refers to the situation , when the party who has filed the complaint on the court is not able to show any proof for the case filed , is referred to as standing .

It refers to the type of some medical report , any eye witness ,or any clue or proof against the other party , can be provided to the court .

Hence , from the given scenario of the question ,

The correct term is standing .

3 0

3 years ago