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3 years ago

Describe the two primary functions of financial accounting

Business

1 answer:

andreev551 [17]3 years ago

6 0

Answer: Measurement and presentation of financial performance

Explanation: The two primary functions of financial accounting are measurement and presentation of financial performance.

The measurement function is performed by following accounting procedures and policies under US GAAP and IFRS.

Whereas, presentation function relates to preparation of financial statements like income statement and cash flow statement.

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A small apartment property is estimated to have potential gross income of $ 25,000. Vacancy and collection losses are expected t

Bezzdna [24]

Answer:

the market value of the property would be $138,542.

Explanation:

To calculate the market value of the property , we need to divide the net operating income by the capitalization rate, in the question we have been given the capitalization rate but the operating income is not available to us. So with the help of given potential gross income we will calculate the effective gross income and then from it we will calculate the net operating income, lets see how to do step wise calculation -

POTENTIAL GROSS INCOME - $25,000

(-) VACANCY AND COLLECTION LOSSES = 5% X $25,000

= $1250

EFFECTIVE GROSS INCOME = $23,750

Now from this we will subtract the operating expenses to get net operating income -

EFFECTIVE GROSS INCOME = $23,750

(-) OPERATING EXPENSES = 30% X $23,750

= $7125

NET OPERATING INCOME = $16,625

Now for calculating market value putting these value sin the formula -

NET OPERATING INCOME / MARKET CAPITALIZATION RATE

= $16,625 / 12%

= $138,541.66

= $138,542 ( APPROXIMATELY )

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3 years ago

Harry recently raised his employees' wages, which has increased production costs. Which factor did the salary hike affect?

Pavel [41]

The factor that the salary hike effect is :
A. Fixed cost
Technically, no matter how much output the workers produced, the wages will stay the same

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3 years ago

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When Hope Springs Water Co. was looking to complete the _________ phase of the new product development process, the company coul

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Answer:

Idea generation

Explanation:

Based on the information provided within the question it seems that the phase that is being described is the Idea generation. This phase refers to the process creating new approaches for finding solutions to existing problems or creating new ideas/products. This phase requires a lot of research, input, and data analysis from many sources in order to generate the best ideas that will make the help the company succeed.

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Answer:

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