The appropriate labels for Curves N and M in the nearby graph is that the Curve N is total cost and Curve M is total variable cost.
<h3>Why is the curve as stated about?</h3>
Because a fixed cost is constant, this is not shown on the graph, however, the movement of the variable cost impacts directly on the total cost as well but it will be higher.
Hence, the appropriate labels for Curves N and M in the nearby graph is that the Curve N is total cost and Curve M is total variable cost.
Therefore, the Option C is correct.
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Answer: Debit Accounts receivable for $600.
Explanation:
The customer had not been billed so that means that they still owe the company. This would make them an accounts receivable so the adjusting entry will have to debit the Accounts Receivable account for $600 to show that it is increasing.
This amount will be credited to the Accrued revenue account to show that the cash has not yet been received.
Pre- is probably the answer, I’m sorry if it’s wrong.
Answer: a. Increase in financing activities for the issuance and a decrease in financing activities for the dividends.
Explanation:
When using the Indirect method of the Cash Flow Statement, you will find 3 sections namely, the Operating Activities, Investing Activities and Financing Activities.
The Operating Activities deal with the normal business Transactions and related entries that keep the business running.
Investing Activities have to do with entries related to Non Current Assets as well as stocks and bonds in other companies.
The above relates to the Financing Section that handles the raising of Capital needed to run the business. They include long term debt and Equity.
When new Equity is announced it is a Cash inflow for the business meaning that there will be an INCREASE in Financing Activities.
Dividends have the effect of reducing Equity so it is a Cash Outflow. This means that there will be a DECREASE in Financing Activities as a result of the declared Dividends.
