Answer:
The correct answer is C
Explanation:
Free cash flow hypothesis is the one which is defined as the increase in the cash flow, which the agency costs of the firms or business with the opportunities of the poor investment. The management which exhausted the positive projects of NPV (Net Present Value), it proceeds in order to invest in negative NPV projects instead paying out the funds to the shareholders.
So, this hypothesis supports, in increasing or rising the portion of debt of the capital structure of the firm so that could increase the value of the firm.
Answer and Explanation:
The journal entries are given below:
1. Petty cash A/c Dr $230
To Cash A/c $230
(Being petty cash fund established)
For recording this we debited the petty cash account as it increased the assets and credited the cash as it decreased the asset
2 Entertainment expense A/c Dr $41
Postage expense A/c Dr $17
Printing expense A/c Dr $17
To Cash A/c Dr $75 ($230 - $155)
(Being reimbursement of the fund is recorded)
For recording this we debited all expenses as it increased the expenses and credited the cash as it decreased the asset
If this question is asked in a job interview, you should answer with 'I agree'
This answer convey that you're a very responsible person that will always stand for your principle and ethic.
The company will see you as an asset that will benefit the company.
Answer:
Account Receivable Bal : 2060
Service Revenue Bal : 5320
Cash Bal : 3260
Explanation:
Total Earnings are $ 5320 out of which $ 3260 have been received and $ 2060 are yet to be received. ( 5320-3260= 2060)
The given transactions include three accounts which are Accounts Receivable , Sales Revenue and Cash.
<h2><u> Accounts Receivable </u></h2><h3><u>Debit Credit</u></h3>
May 5 May 12
Sales Revenue 4010 Cash 1950
<u> Bal: 2060</u>
<u> 4010 4010 </u>
<u />
<h2><u> Service Revenue </u></h2><h3><u>Debit Credit </u></h3>
May 5 Accounts Receivable
Bal 5320 4010
<u> May 15 Cash 1310</u>
<u> 5320 </u>
<u />
<h2><u> Cash </u></h2><h3><u> Debit Credit </u></h3>
May 12 A/c Rec 1950
May 15 Service Bal : 3260
Revenue 1310
<u> </u>
<u> 3260 3260 </u>
<h3><u /></h3>
Price: The value of goods and services that consumers need to pay in order to get it
Cost: The money needed to manufacture a good
So, if the manufacturing costs increase, the Yota expenditure is also likely to increase. As producers want to maintain or even increase profit margins to satisfy shareholders, the price they set for consumers are also likely to increase.
On the other hand, if there is a decrease in cost of resources, the producer is likely to produce more at every price level. Therefore, lowering the price. It is the law of supply.
