Answer:
A decrease in cash flows from financing activities
Explanation:
When cash dividend is paid,
It is an outflow of cash as paid, therefore it will decrease the cash flows.
Further dividend is paid to equity, or preference capital raised for business, which is a financing activity.
Therefore, a cash dividend paid to shareholders will result in decrease in cash flow from financing activities.
Whereas cash dividend received is investing activity.
Final Answer
A decrease in cash flows from financing activities.
In the components of a business plan, the section which contains a detailed description of the company, the problem/opportunity, proposed solution to be offered, and your competitive advantage is "Financial Projections section"
<h3>
What is Financial Projections?</h3>
Financial predictions forecast your company's future revenues and expenses using existing and estimated financial data.
They frequently contain many scenarios so you may see how adjustments to one part of your finances (for example, increased sales or reduced operational expenses) may affect your profitability.
Financial predictions are an important tool for business planning for a variety of reasons.
- Financial predictions assist you in setting your beginning budget, determine when you may anticipate the business to be become profitable, or set benchmarks for meeting financial goals if you're starting a business.
- If you currently have a firm, making annual financial projections can assist you in setting goals and keep on target.
- Both startups and current firms will require financial estimates when seeking outside finance to convince investors and lenders of the business's development potential.
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There are four chararacteristics, which are:
1. Relatively few transactions affect the account balances, but each transaction is often highly material
2. The exclusion or misstatement of a single transaction can be material
3. A legal relationship exists between the client entity and the holder of the stock, bond, or similar ownership document
4. A direct relationship exists between the interest and dividends accounts and debt and equity
There are interests rates in goods sold. If one believes interests rates will move lower in the months ahead, he or she should invest in long-term, fixed-rate savings investments is a false statement.
<h3>Does a higher rate of money supply lower interest rates?</h3>
Note that larger money supply often lowers market interest rates, thereby making it much lower expensive for consumers to borrow.
Investment one should choose today if you believe interest rates will go up is Short-term savings instruments. This is because by investing money in short-term savings instruments, one's money can be available to invest in any kind of higher interest instrument in the future.
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Answer:
On Jan 31
Vacation pay expense Dr $8,900
To vacation payable $8,900
(Being the vacation expense is recorded)
Explanation:
The journal entry is as follows
On Jan 31
Vacation pay expense Dr $8,900
To vacation payable $8,900
(Being the vacation expense is recorded)
The computation is shown below:
= Estimated amount of the current year's vacation pay ÷ total number of months in a year
= $106,800 ÷ 12 months
= $8,900
For recording this transaction we debited the vacation expense as it increased the expenses while at the same time it also increased the liabilities so the vacation payable is credited
