Answer:
(a) Operating activity
(b) Financing activity
(c) Operating activity
(d) Investing activity
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
So,
(a) Increase in accounts receivable come under the operating activities, and this is to be in a negative amount
(b) Issue of preference shares comes under financing activity, and this is added while computing the financing activities
(c) The depreciation expenses are added in the net income whereas the bond premium amortization is to be deducted from the net income. These both items have come under operating activities
(d) An increase in land value comes under the investing activity.
Answer:
Labor to be variable and capital to be fixed
Explanation:
Christine started off a new firm and only needed her own labor and a computer.
As the business grows there will be more work to be done, so her personal labor will be insufficient. There will be need for extra hands to get tasks done, and also people with specialised skills will need to be hired. Labor will be variable because it will change according to business needs. More employees when work is much and scale down on labor when work is less.
Capital needs will increase to effectively support the growing business, for example tables, chairs, computers, stationery, an office, and other equipment. Capital obtained will be fixed in nature especially land, office building, and office equipment.
Answer: 13.21%
Explanation:
IRR(-1000,{425,425,425)= 13.21%
Answer:
$24,000
Explanation:
It would cost $50,000, but is expected to bring an additional $24,000 of profit to the store every year for five years.
Hope this helped <3
1. In the first scenario given above, THE PRODUCT IS NOT HOMOGENEOUS.
Different schools offer different courses at different levels for different categories of students. Each student will have to find the school that is suitable for him. Thus, the products in this market are not the same.
2. In the second scenario given above, THE MARKET MEET ALL THE CRITERIA REQUIRED FOR A COMPETITIVE MARKET.
The product is homogeneous, the buyers are many and the sellers also are many. For a market to be considered competitive, the buyers and the seller must be many, the products must be homogeneous and there must be free entry and exist.<span />