<span>You've just created and e-mailed the financial statements to your boss. What is the next step you should do in accounting cycle? Close out the revenue and expense accounts. After the financial statements are prepared all nominal accounts which include the revenue and expenses, should be closed out to zero. This allows for the accounts to be at an even start for the next accounting cycle.
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Most of the times when a personnel is sent for an official business trip, transportation and lodging, and sometimes even meals are shouldered by the company.
In the statement given above, it is noted that the meals that Melissa took are considered personal in nature. Hence, she can deduct this from the business expenses.
Answer:
1. Operating plan.
2. Operating plan.
3. Financial plan.
4. Dividend policy.
5. B and C.
Explanation:
1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.
2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.
3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.
4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.
Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.
Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.
Hence, the following statements are true about financial planning;
I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.
II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.
Answer:
The price of the stock today=$560
Explanation:
We can use the expression for calculating the required rate of return to calculate the price of the stock today:
RRR=(EDP/SP)+DGR
where;
RRR=required rate of return
EDP=expected dividend payment
SP=share price
DGR=dividend growth rate
In our case:
RRR=13%=13/100=0.13
EDP=$2.80 per share
SP=unknown
DGR=20% and 8%, the average DGR=(20+5)/2=12.5%=0.125
replacing in the original expression;
0.13=(2.8/SP)+0.125
2.8/SP=0.13-0.125
2.8/SP=0.005
SP=2.8/0.005
SP=$560
The price of the stock today=$560
Answer:
True
Explanation:
The direct cost is that cost which is directly related to the manufacturing process of the product or the production process of the product
The example of the direct cost involves direct material cost, direct labor cost, supplies cost of manufacturing, travel, subcontracts, computer time, etc
Hence, the given statement is true.
