Answer: B. the relationship of debt and equity in the capital structure
Explanation: Financial leverage is a ratio to indicate the level of debt that the company maintains, in relation to the amount of money it owns as equity. It is used to measure the proportion to regulate the level of external financing and make decisions accordingly.
Example: A communications company in its financial statements shows a US $ 5,000 liability and an equity of US $ 3,000, so we could say that the level of indebtedness is US $ 5,000 / US $ 3,000 = 1.67 times
Answer: d. Net income is part of the computation for ending retained earnings.
Explanation:
In the statement of owner's equity, Retained earnings are calculated and it is done with the Net Income. This is why when the net income is calculated from the Income Statement it is transfered to the SOE and used to calculate Retained Earnings.
Retained Earnings are calculated by the formula,
Ending Retained = Opening Retained Earnings + Net Income (losses) - Dividends
Net income is added to (or subtracted from if it is a Net loss) the Opening Retained earnings balance. Net dividends are also subtracted.
Answer:
Explanation:
The journal entries are shown below:
a)
Investment in bonds Dr A/c$120000
Interest receivable Dr A/c$ 1000
To Cash A/c $121000
(purchased of 5% bonds with accrued interest of $1000 on the bonds for cash is recorded)
b)
Cash Dr. A/c $3000 ($120,000 × 5% × 6 months ÷ 12 months)
To Interest receivable A/c $1000
To Interest Revenue A/c $2000
(Being the first semiannual interest payment is received)
c) Cash Dr A/c $61100 ($60,000 × 101 + $500)
To Investment in bonds $60000
To Interest Revenue $ 500
To Gain in sale of investment $600
( Being the sale of bond with accrued interest of $500 is recorded and the remaining amount will be credited to the gain in sale of investment)
Answer:
Sales Careers and Examples
Example Career
2. Channel Sales Manager (CSM) Sales Management and Support
4. Route Sales Representative Order-Takers
8. The Key Account Manager Missionary Salespeople
Explanation:
Fives Sales Job Categories:
(1) New business salesperson identifies prospects and sells to them.
(2) Order-taker fulfills orders without trying to acquire new ones.
(3) Missionary salespeople do not make actual sales but initiate the process with decision-makers.
(4) Sales management and support render management and support services to salespeople.
(5) Others include salespeople who do not fall into the above categories.
Answer:
See explaination and attachment
Explanation:
Stockholders' equity is the amount of assets remaining in a business after all liabilities have been settled. It is calculated as the capital given to a business by its shareholders, plus donated capital and earnings generated by the operation of the business, less any dividends issued.
Balance Sheet is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
See attachment for the step by step solution of the given problem.