Answer:
The cost of good sold should not be on a firm's balance sheet under current liabilities.
Hence, the correct option is 1. Cost of Goods sold
Explanation:
Current Liabilities : The current liabilities are the short term liabilities which is occur for less than one year. It is a short term obligations which the firm has ti pay within one year.
It includes accounts payable, bills payable, income tax payable, accrued expenses, etc.
In the given question, the Accounts payable, Short-term notes payable to the bank, Accrued wages, and Accrued payroll taxes are current liabilities while cost of goods sold is an expense for a company which is not shown in the balance sheet.
The cost of good sold is shown in the income statement.
Thus, the cost of good sold should not be on a firm's balance sheet under current liabilities.
Hence, the correct option is 1. Cost of Goods sold
Answer: c) increase cash flow from operating activities.
Explanation:
If there is a decrease in the Accounts Receivable, this means that some receivables have settled their debt to the company which means that the company got cash. Cashflow therefore increases.
Accounts receivables relate to Sales which is part of the operations of the business so this is an increase in cashflow from operating activities.
Answer: New debt is preferable to new equity
Explanation: In simple words, pecking order theory refers to the corporate finance phenomenon which states that managers of a company finance their company on the basis of three sources and always prefers one over the other.
As per this theory the first preference for the manager is retained earnings, second option should be debt and the last resort should be equity. A manager following pecking order theory focuses on decreasing the risk of financing rather than the cost of capital.
All economic systems must answer the 3 basic questions:
1. What goods and services will be produced
2. How will the goods and services be produced?
3. Who will consume the goods and services?
Answer:
Avoids coordination expenses and delays.
Explanation:
Outsourcing can be defined as a type of business practice in which an organization assigns some of its activities to a third party. It can also be described as the practice in which a company hires another company to carry out various operations and tasks.
The importance of outsourcing include:
- It gives the organization access to more skilled individuals.
- it lowers the cost of production.
- it provides more flexibility to the employees.
- it enables the company to concentrate on more vital operations.
