Answer:
A. Unaffected
B. Unaffected
C. Understated
D. Overstated
Explanation:
C. Understated.
Understated balance is one that is reported as having a lesser balance than it actually does. example of what could cause the situation in which cash is understated is that when check is written on the disbursing bank on the last day of December with a credit to cash, and an associated debit to some expense account so as to decrease reported profits and taxes be it (direct or indirect tjaxes) for the year.
Another example is when a utility bill that is suppose to be paid by the last day of the month but failed to record the expenses, under the accrual basis of accounting, the company should recognize the expenses now even though the bill is not yet due. Until the bill is recorded, the utilities payable is understated
d. Overstated.
An overstated balance is an account balance that is reported as having a greater balance than it actually does, example of such situation is that in which an employee has misappropriated funds during the year, and draw a check transferring funds to the account with the shortage so as to cover the shortage. As of December 31, the shortage is replaced, with no reduction as yet recorded in the account on which it is drawn.
In second example of understated, expense account is understated and because of this net income is overstated.
The expenditure method is the most widely used approach for estimating GDP, which is a measure of the economy's output produced within a country's borders irrespective of who owns the means to production. The GDP under this method is calculated by summing up all of the expenditures made on final goods and services.
Answer:
48.00%
Explanation:
For computing the debt to capital ratio, first we have to determine the equity value and debt value which is shown below:
Equity value = Number of outstanding shares × stock price per share
= 5.2 million shares × $12
= $62.4 million
We know,
Total capital = Debt + equity
$120 million = Debt + $62.4 million
So, the debt would be
= $120 million - $62.4 million
= $57.6 million
Now the debt to capital ratio would be
= $57.6 million ÷ $120 million
= 48.00%
Answer:
(D). surrogate interaction and direct interaction.
Explanation:
Process Chain Network (PCN) analysis involves designing an organization's processes in such a way that it brings about better interaction with customers.
The PCN analysis highlights three process areas which are; <u>surrogate interaction, direct interaction</u> and independent processing areas.
<em>Service operations only exist within the areas of </em><em>surrogate interaction and direct interaction</em><em>, because they require more interaction with customers and are more personal in nature.</em>
