1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bazaltina [42]
3 years ago
12

You are reviewing the Client Overview tab for a new client to determine the scope of a bookkeeping clean-up engagement. You noti

ce that there is a large amount in the Opening Balance Equity account. Which 3 reasons could be causing this balance?
Business
1 answer:
Scrat [10]3 years ago
7 0

Answer:

See explanation section

Explanation:

Three reasons could be causing the opening equity balance high, and those are -

1. Issuing more common stock is one of the significant reasons for the company that causes a large amount in the opening balance of the equity account.

2. Issuing excess preference stock to involve the investors can be the other reason to get a higher amount of beginning equity balance.

3. Making much profit for the prior years, and keeping them with the retained earnings without expanding the business can be the third reason.

You might be interested in
What should you include in the opening of a direct claim letter? a. A justification of your request b. A clear statement of the
ololo11 [35]

Answer:

Hi

The answers are b) and c)

Explanation:

The letter of complaint is used to file a complaint or a claim about a product or service that has left us unsatisfied or does not correspond to the price as previously agreed. To make this type of letter you need to sort the ideas. This type of correspondence must be clear and concise. It should be clear to avoid useless preambles and explanations at all times and should go directly to the statement of the reason for the claim. Hints and allusions can only lead to confusion, as the recipient has to decipher what is so unclear in the complaint letter.

6 0
3 years ago
Stellar Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
Nadusha1986 [10]

Answer:

$2,640,000

Explanation:

Feb 1                     $2,040,000*10/12=1,870,000

June 1                    $1,320,000*7/12=     770,000

Dec 31                   $3,031,130*0=          

Total expenditure to be capitalized        $2,640,000      

5 0
4 years ago
Read 2 more answers
Capital structure decisions include determining: Multiple Choice which one of two projects to accept. how to allocate investment
Serjik [45]

Answer:

The correct answer is how much debt should be assumed to fund a project.

Explanation:

The first thing that must be specified is that a company can be leveraged through debt, contributions from partners or equity, and that the relationship between these two variables will be the capital structure of the company. In addition, one could say that success comes with more certainty to a company that evaluates different possibilities in which these two forms of leverage come into play.

The term optimal structure, in finance, includes the close relationship that exists between the costs and benefits that may be the product of different forms of leverage. One of the points that financial advisors take into account to measure such relationship are the tax advantages that an entrepreneur can acquire when making financial decisions and the decisions he makes regarding the leverage he wishes to obtain.

The following are some of the aspects that are evaluated when looking for an optimal capital structure:

  • Financing costs can be high as a result of the company neglecting its good name before the financial sector; In case the company does not comply with the business hypothesis underway or has a bad habit of payment, it can lead to high interest rates and unfavorable conditions or, in the worst case, close the doors in the financial sector.
  • Having a good payment capacity and a good habit of timely payment will be key when requesting a loan, not only for obtaining the credit itself, but because you can obtain proposals from different financial institutions and take advantage of the best rates and benefits.
  • The portfolio purchase options are always a good ally to improve the cash flow of the organization, to take advantage of this it is necessary to evaluate the rate, term and additional conditions that this new financing includes.
  • The company must find that different transactions are not restricted in the contracts it makes with third parties. Having to subject the activity to the clauses imposed by suppliers or allies, can cause you to miss the opportunity to take advantage of other businesses.
  • The agency theory and the moral hazard problem is something that must be taken care of very carefully, since the level of autonomy that the administrator has in the company can jeopardize the offer of value that the investor expects to receive. There have been cases in which the bad decisions of the administration, whether due to errors or fraud, have caused bankruptcy cases or penalties.

In reality, an optimal capital structure is found when investors obtain a significant value offer, that is, that the earnings per share –UPA– are greater, and when financial leverage is used without exceeding market risk levels, but it should also be clarified that all this varies according to the economic conditions of the country and the sector in which the company is located. Finally, it goes without saying that supporting the evaluation of decisions through different financial indicators makes it possible to make a more accurate decision in all cases.

4 0
3 years ago
Janet's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Janet's very tiny kitchen has barely eno
zzz [600]

Answer:

Janet's Performance Pizza

Marginal Product of Labor

Labor            Output                    Marginal

         (Number of workers)   Product of Labor

                   (Pizzas)                     (Pizzas)

0                        0                           0

1                       70                         70

2                    120                         50

3                    160                         40

4                    190                         30

5                   200                         10

Explanation:

a) Data and Calculations:

Labor            Output                    Marginal

         (Number of workers)   Product of Labor

                   (Pizzas)                     (Pizzas)

0                         0                           0 (0 - 0)

1                        70                         70 (70 - 0)

2                     120                         50 (120 - 70)

3                     160                         40 (160 - 120)

4                     190                         30 (190 - 160)

5                    200                         10 (200 - 190)

b) Janet Performance Pizza's marginal product of labor describes the change in the number of pizzas that the restaurant produces by employing one more unit of labor (worker).

4 0
3 years ago
Given a need to raise capital of $2 million and attorney costs of $150,000, with an underwriter's spread of 3%, the amount of bo
ipn [44]

Answer:

The amount of bond issuance is $2,085,500

Explanation:

The computation of the amount of bond issuance is shown below:

= Raise capital + attorney cost - underwriter spread

= $2,000,000 + $150,000 - 3% of $2,150,000

= $2,150,000 - 3% of $2,150,000

= $2,150,000 - $64,500

= $2,085,500

Hence, the amount of bond issuance is $2,085,500

We simply applied the above formula so that the correct value could come

6 0
3 years ago
Other questions:
  • Frantic Fast Foods had earnings after taxes of $970,000 in 20X1 with 378,000 shares outstanding. On January 1, 20X2, the firm is
    5·1 answer
  • How to write 96,592 PLAES HELP MEEEEEEEEEE
    12·2 answers
  • Strategic commitments are actions that are:____________
    9·1 answer
  • The bookkeeper for Whispering Winds Equipment Repair made a number of errors in journalizing and posting, as described below. Fo
    5·1 answer
  • "Seattle-based Theo Chocolate makes organic and fair-trade chocolate bars. Its management team includes Joe Whinney, the company
    12·1 answer
  • In your own words, discuss the payback period, NPV (net present value), and IRR (internal rate of return) methods for capital bu
    12·1 answer
  • For many large, international companies that do business in less developed countries, corruption is a part of everyday life. Wit
    9·1 answer
  • McDonald's major distribution partner, The Martin-Brower Company, needs at least $1 million to build a new warehouse in Medicine
    5·1 answer
  • After his company announced that it plans to cut 30% of the workforce within the next 90 days, Deon begins to experience chronic
    7·1 answer
  • Payroll Entries Urban Window Company had gross wages of $252,000 during the week ended July 15. The amount of wages subject to s
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!