Answer:
a) Adjustment of (16,000) in the Operating Section
Explanation:
The adjustment required in the operating activities section of the cash flow statement is shown below:
Loss of sale of equipment $30,000
Less: Gain on sale of debt investment -$46,000
The net deduction is $16,000
Since there is a loss on sale of an equipment so the same is to be added back and there is a gain on sale of investment with respect to debt so the same is to be deducted
hence, the correct option is a.
Answer:
b. transformational
Explanation:
Transformational leadership refers to the kind of leadership wherein a leader uses his appeal or charisma effectively to convey and convince his subordinates with respect to long term vision.
Transformational, as the word suggests refers to those leaders who are capable of transforming the approach of their subordinates owing to their charm and the reputation they have earned for themselves.
Such leaders are good at implementing organizational changes owing to their personality.
Answer:
The statement is True as well as correct
Explanation:
Allowance method is the financial term which is defined as the uncollectible accounts receivable procedure that reports the estimate of the bad debt expense in the same accounting or fiscal year as the sale.
Under this method, it is used to adjust the accounts receivable which appears on the balance sheet.
For example,
If the company has the credit sales of $800,000 in December and estimate that the 4% will be uncollectible. Then using this method, computing the uncollectible as:
Bad debt expense = Sales × Estimate uncollectible
= $800,000 × 4%
= $32,000
So, this estimate the bad debt expense rather than wait to see which customer will not able to collect.
Answer:
E) None of the above
Explanation:
In partnership, the partners earn profit. The salary allowances are considered as though paid to a third party and are considered before arriving at the net income.
As such, given that net income is $30,000 and is to be shared in the ratio 80:20 between Gary and Elaine respectively.
Elaine's share = (20/100) × $30,000
= $6,000
