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
Inessa [10]
2 years ago
15

3. Vocabulary test. Explain the differences between: a. Real and financial assets. b. Capital budgeting and financing decisions.

c. Closely held and public corporations. d. Limited and unlimited liabili
Business
1 answer:
VikaD [51]2 years ago
8 0

Answer:

The correct answer is:

a) A real asset is a Tangible Asset, Like a machine, a Land or a Building. Real Assets are used to generate resources and, therefore, produce changes in the financial situation of the company that owns them. While a financial asset on the other hand constitutes the right to collect an account in the future. In the case of companies, you can think of an account or document receivable; For natural persons, a financial asset can be a document that compares a plaque investment in a banking institution and that will produce a cash flow in the future.

b) Investment projects are independent, perfectly divisible, and the company can invest any amount of money in a project. Only investment opportunities existing at the present time and not future are considered.  While capital budgeting, it is a projection either in the short term or in the long term, and the reasons for making this budget are that:  Benefits from the point of view of administrative planning and control., an investment proposal must be judged in relation to whether it provides a return equal to or greater than that required by investors y the evaluation of projects through mathematical-financial methods.

c) When a corporation is established, its shares may be in the hands of a small group of investors, perhaps the company's administrators plus some sponsors. In this case, the shares are not sold to the public and the company is closed. Over time, if the company grows and new shares are issued to raise capital, these shares go public. The company becomes a public company.

d) Limited liability means that the liability of each partner's debt is limited to their investment in the business, that is, they cannot be held personally responsible for the debts of other parties, if the company is sued or forced to close, the Each partner's business assets may be liquidated, but his personal assets are safe. Furthermore, unlimited liability means that all parties are responsible for all debts of the company, regardless of how it was created. If a partner commits acts that cause the business to reconcile, all parties become part of the process, not just the partners whose actions caused the judgment.

You might be interested in
As a policy option for regulating natural monopoly, average (total) cost pricing is attractive because Select one: a. the result
ASHA 777 [7]

Answer: c. it ensures productive efficiency.

Explanation:

The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.

With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.

This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.

Therefore, the correct option is C "it ensures productive efficiency".

7 0
3 years ago
Annual Income Statement Data Selected Year-End Balance Sheet Data Sales $ 50,000 Prepaid expenses increase $ 3,000 Expenses: Inv
Solnce55 [7]

Answer:

see calculation and working below

Explanation:

operating activities section

Net income                                                               $ 8,500

Adjust for changes in non- cash items :

Amortization expense                                                $1,500

Adjust for changes in working capital :

Prepaid expenses increase                                   ($ 3,000)

Inventory increase                                                     ($500)

Accounts payable decrease                                   ($1,000)

Net Cash Provided by Operating Activities            $5,500

6 0
3 years ago
Favourite drink?<br><br> pepsi<br><br> cola<br><br> lemonade<br><br> other? comment
frutty [35]

my favorite is strawberry lemonade


8 0
3 years ago
Read 2 more answers
XYZ Law Firm provided services for a cllent for $5,000 cash and provided service for another for $10,000 that will pay for the s
Norma-Jean [14]

Answer: The income statement should reflect $15,000.

Explanation: The reason is because accounting procedures are always guided by certain principles or concepts. One of such concepts is the Realization Concept. This simply states that income is considered to have been earned when the goods/services have been dispatched /rendered to the client and the client has incurred liability for such (or has accepted his/her indebtedness). The Accrual Concept is also applicable in the above instance because this concept/principle states that revenues and expenses are recognized as soon as they are earned and incurred and not when money is expended or received. So basically, XYZ Law firm has provided services for two clients. One of them has paid while the other will pay sometime later. Both of them are already recognized as revenue and the current income statement will reflect revenue transactions to the tune of $15,000.

4 0
3 years ago
In order to satisfy as many wants as possible, it is necessary to achieve productive efficiency:
charle [14.2K]

Answer:

(i) since otherwise resources are idle.

(ii) since it would be impossible to produce more of one thing without producing less of another.

Explanation:

When an economy has reached productive efficiency, all resources are being fully utilized such that if the country wants to produce more of one good, they would have to produce less of another.

It is important that a country achieves this level because it would mean that no resource is being left idle and there is no under-performance in the economy.

8 0
3 years ago
Other questions:
  • Which of these arrangements allows one to bypass insurable interest laws
    11·1 answer
  • If 115 people each produce 356 pens in a day, what is the total production number for that day? A. 40,940 B. 39,490 C. 40,490 D.
    10·1 answer
  • Internal users of financial information: Multiple Choice Are not directly involved in operating a company. Are those individuals
    5·1 answer
  • Oct. 1 Stockholders invest $30,000 in exchange for common stock of the corporation.
    15·1 answer
  • During its first year of operations, Beta Company paid $26,310 for direct materials and $18,100 in wages for production workers.
    8·1 answer
  • ABC generally causes the least amount of cost distortion among products because indirect costs are allocated to the products bas
    8·1 answer
  • What is meant by organ growth?​
    14·1 answer
  • List three advantages of buying an existing business
    13·1 answer
  • Internal performance measurements focused on the extent to which employees are using a crm system as intended are known as _____
    8·1 answer
  • When zoning deprives the owner of all economic value of her property, it will be categorized be scrutinized under the constituti
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!