Answer:
True.
Explanation:
‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.
The cash flow from operating activities is generally more than the net income after taxes.
The cash flow from operating activities includes only the cash transactions relating to the operations of the business. It ignores the non-cash transactions. On the other hand, net income is derived after deducting all the expenses (paid or unpaid) from the revenue earned, pertaining to a particular period.
Example: Depreciation expense is a non-cash transaction. It is treated as follows:
While calculating cash flow from operating activities, depreciation expense is ignored (added back to the net income) as it is a non-cash transaction.
On the other hand, depreciation expense pertaining to the accounting period is deducted from revenue to calculate net income after taxes.
Thus, the cash flow from operations is generally more than the net income after taxes.
Answer:
product
Explanation:
When a company is organized by product, it will structure its whole operation to cater to focus on that one product. This will include the way the arrange their production method, distribution strategy, marketing plan that they implemented, etc.
We can use coca-cola as an example.
They separate the office to cater specific products only. They do this to increase the efficiency of the production. Focusing only on one product will make it easier for the workers to understand the type of customers that they face in the market and the type of materials and production method that will be the most cost efficient.
Answer:
1,065 U
Explanation:
Materials Price Variance = Actual Quantity Purchased * (Standard Price – Actual Price)Actual Price= Total Cost / Quantity Purchased
= ($27,690 /21,300 )=$ 1.3
=21,300* [$1.25 – $1.3]
=21,300*0.05
=1,065 U
During May, the materials price variance for part XBEZ52 was 1,065 which is Unfavourable because the actual
purchase price is higher than standard.
Answer:
her expected gain is $45,000.
Explanation:
If she wins
She will make = $400,000
Probability of winning = 0.3
Expected income = $400,000 x 0.3 = $120,000
Cost on the cash = $75,000
Expected gain = Expected income - Cost = $120,000 - $75,000 = $45,000
If she loses the case she has to bear the cost incurred to prepare the case. So, the probability on the cost side is 1 but probability on the income side is 0.3 so we calculated the 0.3 probable income which is $120,000 after deducting the cost the lawyer will have expected gain of $45,000 only.
The two accounts that would be most at risk are: Sales and Accounts Receivable
Accrual method of accounting is an accounting method that reports on the company book <em>revenue</em> and expenses as they occur in which assets are then adjusted when revenue and expenses are paid.
Assuming a company or organization are to increased shipments which they are having doubt about as to whether those shipment would either be returned or not paid for.
The company book would show increase in income and increase in account receivable as the company is yet to receive payment for the goods that were shipped.
In a situation were the goods that was returned are high which means that at the end of the fiscal year both sales and account receivable account will be affected.
Inconclusion The two accounts that would be most at risk are: Sales and Accounts Receivable.
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