Answer:<em> Option (E) is correct.</em>
From the given option, the following will reduce Bankston's need to issue new common stock: <em>Increase the percentage of debt in the target capital structure.</em>
With an increase in percentage of debt , there will be a proportional increase in cost of equity and thereby decreasing investment in equity. This will therefore reduce Bankston's need to issue new common stock
Answer:
$2,320
Explanation:
Calculation to determine what amount of salaries earned but unpaid at the end of the accounting period is:
Ending salaries earned but unpaid=$2,900-$580
Ending salaries earned but unpaid=$2,320
($2,900-580)
Therefore the amount of salaries earned but unpaid at the end of the accounting period is: $2,320
Answer; True
Explanation;
When a company has excess capacity, it means that potentially it could produce more than it is producing at the moment. As this potential already takes into account the fixed costs, this means that given the fixed costs it currently has, more goods could be produced on those same fixed costs and they wouldn't increase.
Increasing production level would therefore only increase variable costs which rise whenever production rises as they are directly related to the production of goods.
Answer: a) Documentation Procedures
b) Independent Internal Verification
c) Physical Control
Explanation:
I'll list the internal control principle in bold letters and then explain them a little.
(a) Company checks are prenumbered. DOCUMENTATION PROCEDURES.
These are meant to provide a paper trail to identify the events that occur in a company and pre numbering check ensures that the number is always known.
(b) The bank statement is reconciled monthly by an internal auditor. INDEPENDENT INTERNAL VERIFICATION.
Here the company runs its own checks and balances to ensure that they are in good shape.
(c) Blank checks are stored in a safe in the treasurer’s office. PHYSICAL CONTROL.
This refers to the use of physical devices to keep documents and assets safe and can include safes, vaults and safety deposit boxes.
