Answer:
b. Merchandising companies generally have a longer operating cycle than service enterprises.
Explanation:
Merchandising store has a long run because they keep selling goods to customers and restocking them, they deal with tangible goods while services enterprise deals with consulting services and auditing services, they do not sell goods to customers.
Answer:
a. Cash paid to suppliers of merchandise during the reporting period: $44.1 million
b. A summary entry that represents the net effect of merchandise purchases during the reporting period as below:
Dr Cost of goods sold 44,000,000
Dr Inventory 6,700,000
Cr Account Payable 6,600,00
Cr Cash 44,100,000
Explanation:
We have the total amount goods buying from the supplier in the period = Cost of good sold in the period + Difference in the inventory balance of the period = $44 million + $6.7 million = $50.7 million
Thus, the additional amount owed supplier in the period is $50.7 million.
Account Payable increased by 6.6 million, it means that only 44.1 million ( that is, 50.7 million - 6.6 million) is paid during the period.
Thus, the summary will represents: Increase in COGS 44 million ( given); Increase in Inventory 6.7 million (given); Increase in account payable 6.6 million ( given) and Decrease in Cash 44.1 million ( calculated above).
Answer:
The correct answer is venture capitalists generally have an exit strategy
Explanation:
Venture capitalists are private individuals that make funds available to high growth startups in exchange for equity stake in the company.
Venture capitalists usually have an exit plan, in that their investment for short to medium term,as they intend to dispose their investment when it is most profitable to do so,with aim of reaping high returns overall on their initial investment.
Venture capital is not easy to obtain, as a business must show signs of high growth in near future to attract venture capitalists.
Venture capitalists do not invest in all forms of businesses as they only place their funds in selected business ventures
Reforms in government agencies could be more difficult than in private companies because they tend to be more bureaucratic so more resistant to change as a result as there may be an ingrained way of doing things that is hard to deal with.
Answer:
- The richest quintile has the ability to save a larger percentage of its income.
- Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.
Explanation:
First part of this question reads:
In the United States, the richest quintile of the population receives 13 times as much income as the poorest quintile. However, the richest quintile only spends 4 times as much as the poorest quintile.
The richest quantile can afford to save more than the poorest quantile because they get enough income to manage their daily needs and then save. The poorest quantile on the other hand face a daily struggle and so have to spend all or most of their income to survive.
When the richer quantile goes through temporary fluctuations, they maintain moderate spending because they know it is temporary and so they keep saving. This is not the case for the poorer quantiles who have to spend according to their income - regardless of its fluctuating - to survive.
