Answer:
The given statement is FALSE.
Explanation:
It will only be till sustainable growth rate that the firm will not require external financing. The debt /ratio demands resources to sustain the operation, which are not powered by the profit margin.
A. Multiple password changes and verifications
You won’t need a password for most online stores. The rest of the answers are all required.
Answer:
Option (B) is correct.
Explanation:
Amount of which adjusting entry required:
= Amount of uncollectible accounts - Balance in Allowance for uncollectible accounts
= (Balance in accounts receivable × Estimated percentage of accounts receivable to be uncollectible) - Balance in Allowance for uncollectible accounts
= ($200,000 × 4%) - $2,000
= $8,000 - $2,000
= $6,000
Therefore, the adjusting entry is as follows:
Bad debt expense A/c Dr. $6,000
To Allowance for uncollectible accounts $6,000
(To record the bad debt expense)
Answer:
The correct answer is a) the inflation differential.
Explanation:
Inflation differential is the difference we can find between two countries in exchange rates. The inflation differential can produce losses for the company if, in the country you want to buy, there is a big difference in your exchange rate, since this raises the prices of the product. As a result, the company has a loss; it can also happen if It is a case of exports.
If the inflation differential is maintained for an extended period, it can cause loss of competitiveness, since the profit margin of the products would be affected.
<em>I hope this information can help you.</em>
Answer:
Option D) The company’s depreciation expense declined.
Explanation:
It happens because when company´s depreciation decrease you have less cost of sales and an improvement in the Gross Margin and hence in the Net Income, but this enhancement in the Net Income has an opposite effect on Net Cash because less depreciation means less total cash,
Total Cash it's defined by Net Income plus Depreciation, a less Depreciation means less Net Cash.
