Answer:
The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be -$850 or $850 outflow
Explanation:
The computation of the cash flow from the operating activities for year 2 is shown below:
= Cash revenue in year 2 - interest on notes payable
= $950 - $1,800
= -$850
The negative amount shows an outflow of cash
.
The interest on the note payable is computed by
= Borrowed amount × interest rate
= $36,000 × 5%
= $1,800
Answer:
<em>Labour rate variance = $260 favourable</em>
Explanation:
<em>The rate variance would be the difference between the standard labour cost of the 2,300 units sold and the actual labour cost</em>
Standard labour cost (3600/1200× 2300)<em> 6,900</em>
<em>Actual labour cost </em><u><em>6, 640</em></u>
<em>labour rate variance </em><u><em> $260</em></u><em> favourable</em>
The variance is favourable because the StuckinMyHouse book company saved $260 as a result of of his actual cost been less than the expected cost.
Answer:
There is sacrifice to having your own business. Sam wasn't ready to invest the hours needed to make it on his own.
Explanation:
There are many advantages to opening a new business. When you are an entrepreneur it is easy to get lost in all the benefits and don't pay attention to many os its disadvantages.
A big disadvantage is that you are always at work, you are working everywhere at all times. There are no off days, if you’re not working, then you’re not earning. You don’t need to be engaged 24/7 to have a chance at success in the world of entrepreneurship, but you will be working a lot more often.
Most people who find success in the world of entrepreneurship are working longer, harder days than the average “traditional” employee. You do have some flexibility when putting in those hours, so you can structure medical appointments, school visits, and other family needs within your day. You do not have the luxury of cutting back on your hours most days.
There is sacrifice to having your own business. Sam wasn't ready to invest the hours needed to make it on his own.
Answer:
<em>Run a recoverability test and then a fair value test.</em>
Explanation:
Business assets with a loss of value are subject to impairment tests to assess and identify the magnitude of the loss.
<em>Measuring the magnitude of the loss requires two steps:</em>
- Performing a recoverability check is to decide whether an impairment loss occurred by determining whether the future value of the undiscounted cash flows of the asset is less than the asset's book value. If the cash flow is less than the value of the book, the loss will be assessed.
- Measure the cost of damage by measuring the difference between the book value and the asset's market value.
Answer: Option B
Explanation: In simple words, efficiency theory states that direct monetary benefit is the best motivator for the worker and if the employer pays high wage then the worker will definitely work more efficiently.
It further states that higher wage will be covered by the extra benefit that the worker will provide with his or her performance.
Thus, the correct option is B.
