1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Naya [18.7K]
3 years ago
13

Jeremy operates his own small business, but he doesn't want to be bothered with accounting information. He tells his friends, "A

ll I need accounting for is to prepare my income tax return for my business. I'll hire someone to do that for me." Jeremy's attitude would be disastrous if he managed a large firm, but is a reasonable view for a small business owner. (Points : 2) True False
Business
1 answer:
frutty [35]3 years ago
8 0

Answer:

The correct answer is the option True, it would be reasonable.

Explanation:

To begin with, accounting is one of the most importants subjects to have in mind regarding the fact of openning and managing a business, no matter how small or large that firm will be. Moreover, accounting will facilitate the fact of keeping up with everything that goes in and goes out regarding money in the business and to also help the manager to see how well the incomes and outcomes are doing in the balance sheet. Therefore that accounting can help the manager to improve the performance of the business if the information is understood and used properly. Besides, accounting information is obligatorily important when regarding subjects of taxes and legal matters as well.

Secondly, although is important to keep up with the accounting of the business, a small company could not pay too much attention to it and instead focusing in other matters. However, it is very important to understand that to be a master in managing a business and to improve the performance of it, it is very important to give more attention to accounting information with the purpose of understanding the business better.

You might be interested in
The Most recent financial statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. In
Aneli [31]

Answer:

$5,006.07

Explanation:

The external financing needed = Projected Increase in Assets - Increase in Liabilities - Increase in Retained Earnings

Projected Increase in Asset = Assets Value*Sales Growth Rate

Projected Increase in Assets = $364,720 * 20%

Projected Increase in Assets = $72,944

Increase in Liabilities = Liabilities * Sales Growth Rate

Increase in Liabilities = $69,600 * 20%

Increase in Liabilities = $13,920

<em>To calculate the Increase in Retained Earning, the below calculations are needed:</em>

a. Profit Margin Rate = Net Income / Sales * 100

Profit Margin Rate = 75,000 / 751,000 * 100

Profit Margin Rate = 9.99%

b. Dividend Payout Ratio = Dividend / Net Income * 100

Dividend Payout Ratio = 30,000 / 75,000 * 100

Dividend Payout Ratio = 0.4

Dividend Payout Ratio = 40%

Retention Rate = 1 - Dividend Payout Ratio

Retention Rate = 1 - 0.40

Retention Rate = 0.60

Retention Rate = 60%

c. Expected Sales = $751,000 * 1.20 = $901,200

So, the Increase in Retained Earning = Expected Sales * Profit Margin * Retention Rate = $901,200 *9.99% * 60% = $54,017.93

Therefore, External Fund Needed = $72,944 - $13,920 - $54,017.93 = $5,006.07

3 0
2 years ago
In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is
Lerok [7]

Answer:

$16250

Explanation:

For every 200 hours of needed work, $2500 must be paid. We divide the amount of hours needed for 200 to obtain the amount of times that $2500 are paid. Multiplying this number by $2500 we obtain the total expense gor salaried employees.

frac{{1300}{200}}x2500

6 0
3 years ago
Recognizing oneself as part of a whole and working toward a
Lubov Fominskaja [6]

Answer:

555

Explanation:

4 0
3 years ago
If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, and the expected return on dollar depreciation a
lawyer [7]
A. an investor should invest only in dollars.
7 0
3 years ago
Read 2 more answers
How to determine equilibrium price and quantity from a table?
ozzi
I need more information
3 0
3 years ago
Other questions:
  • QN=17 P&amp;G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Foods became aware o
    13·1 answer
  • About _____ percent of those who use tobacco are aged 18 to 25.
    11·1 answer
  • Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international brands is pervasive in some countr
    5·1 answer
  • The accountants at Gamone Phones, a cell phone manufacturing company, discover that the firm has performed poorly over the last
    15·1 answer
  • Which of the following is a discrete quantitative variable?
    7·1 answer
  • John is an expediter for a paper goods manufacturer. he has been asked to track how much time he spends traveling to and from ea
    15·1 answer
  • Presented here are long-term liability items for Skysong, Inc. on December 31, 2017.
    13·1 answer
  • Premium Company makes cardboard boxes. During the most recent accounting period Premium paid $60,000 for raw materials, $48,000
    9·1 answer
  • Which of the following is the riskiest choice for your money? A. Savings account B. Government bonds C.CDs D REI
    14·2 answers
  • A company uses return on investment (ROI) to measure the performance of its business units. The company manufactures and distrib
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!