Answer:
e. Company Heidee has a higher ROE than Company Leaudy.
Explanation:
Return on equity measures how well the management of a business uses owner's equity to get returns. It is calculated by dividing net income by owner's equity.
That is
ROE= Net Income ÷ Owner's equity
Considering the accounting equation
Asset= Liability + Owner equity
Owner equity= Asset - Liability
From the equation when a company that take on more debt owner's equity will reduce.
The effect of reduction in owner's equity on Return on Equity is that it will increase the ratio, since owner's equity is the denominator.
In this scenario both companies have the same profit margin so if company Heidee has higher debt ratio it follows that it also has a higher ROE than Company Leaudy
Answer:
The correct answer is C.
Explanation:
Giving the following information:
The actual quantity of direct materials purchased 20,000 pounds.
standard price of direct materials $ 7.00 per pound.
Material price variance $ 5,000 Unfavorable.
Material quantity variance S 2,500 Favorable.
Direct material price variance= (standard price - actual price)*actual quantity
-5,000= (7 - AP)*20,000
5,000= 140,000 - 20,000AP
20,000= 145,000AP
Actual price= 7.25
Answer:
The options for this question are the following:
A. from debtors to creditors; a smaller
B. from creditors to debtors; a larger
C. from debtors to creditors; a larger
D. from creditors to debtors; a smaller
The correct answer is A. Debtors to creditors; a smaller
Explanation:
There are two definitions of deflation. Most people believe that it is simply price drop. But debt deflation is what happens when people have to spend an increasing part of their income on debt service contracted by them: pay mortgage debt, pay credit card debt, pay academic loans.
Nowadays, people have to spend so much money on buying a house or paying for education, that they do not have enough money to spend on goods and services, except for contracting more debt with their credit card or with other loans.
Result: the markets are slowing. Deflation means a slowdown in revenue growth. Markets contract, capital investment and employment also decrease and wages fall. That is what is happening, as a result of a deliberate policy, in Europe and in the US. The fall or stagnation of prices is nothing but the result of a smaller volume of income to spend.
Answer:
O Perishable
Explanation:
The distribution network required for the products that are standardised, durable and unstandardised that means for storage purpose
But in the case of the perishable goods, the goods that are not stored for the longer time that means it consumed immediately like milk, bread, eggs, etc
So as per the given option, the last option should be relevant