Answer:
The correct answer is c. Amount of net income retained in the business.
Explanation:
In any administration of a company, financial information is important and necessary as it is the basis for a good decision, so that the decision taken is sufficient and timely for executives. Financial management is the information that accounting accounts because it is essential for the decision making of the company.
The financial analysis aims to obtain conclusions about the future of the development of the company's activity, on which it is based on all the information presented in the financial statement and requires an analytical ability.
The need for this information ensures that the financial statements are made, since with the financial statements, the financial situation, results of operations and changes in the company's situation are expressed.
The importance of the financial information of a company, formulates the conclusions and information of the entity, of how it is. With this information in general, the future of the company can be evaluated and decisions made, with which the company benefits.
Answer:
The correct statement is:
A. stocks and bonds issued by businesses to raise funds
Explanation:
When business starts, it needs money to operate, and a very effective way to obtain money is offer stocks to the public. The more stocks are bought, the more money the business raises, and this money becomes capital, which is one of the four factors of production (the other three being labor, land, and entrepreneurship).
The D statement could be true as well, because tools and machinery are also part of the capital of a company. However, the question is specifically referring to money, and while tools and machinery can become liquid (that is, can become liquid), they are money per se.
Answer:
Which of the following factors makes it imperative that organizations be fast and flexible?
1. Globalization
Explanation:
Organizations nowadays have to compete in a market where they have to consider a variety of factors in order to stay ahead of the competition. Being ahead of the competition always translates on a wider access to access and thus more sales. The aim of all business organizations is to make profits, staying ahead of the competition is a sure way of making more profits. Factors that organizations need to consider are; globalization, corporate strategy, and workforce diversity.
The main factor of interest to us is globalization as a factor to be considered in organizational success. Globalization is the action by which business and organizations start having more influence in the international scale. Globalization has been of interest ever since the onset of technological advancement like the internet. The internet improved access to information in the international scale by fostering communication and relations between different people and companies around the globe. Organizations could easily look for opportunities in different parts of the globe where their products and services had a potential of being purchased.
Globalization has made it imperative that organizations be fast and flexible. The aspect of competition and customer loyalty makes it imperative for an organization in the global arena to be fast since customers need a more fast and reliable delivery of products and services and they will always pick the most reliable option in terms of time, cost and quality. The global arena is ever-changing too in terms of customer expectation mostly driven by technology. An organization needs to be flexible to the varying global market conditions.
Answer:
Thomson Co.
Journal entries:
May 1:
Debit Cash Account $240,000
Credit Bonds Payable $240,000
To record the issue of 10-year, 9% bonds at face value.
Nov. 9:
Debit Interest on Bonds $10,800
Credit Cash Account $10800
To record the payment of 6-months interest.
Dec. 31:
Debit Interest on Bonds $3,600
Credit Interest on Bonds Payable $3,600
To record two-months interest accrued.
Explanation:
The journal entries made by Thomson Co. are to record the bond transactions. For example, when the bonds were issued, cash was received. This transaction gives rise to a debit to the Cash Account that received the value and a credit to the Bonds Payable Account that gave the value. The bonds payable account represents the liability that is contracted by the bonds issue. Recording these transactions in the journal show their effects on the accounting equation that requires assets to be equal to liabilities and owner's' equity following each transaction.
Answer:
"Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply."