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Inessa [10]
3 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]3 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.

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The ledger of Rios Company contains the following balances: Retained Earnings $29,000; Dividends $3,000; Service Revenue $48,000
ohaa [14]

Answer:

(1) Close revenue accounts

Dr. Service Revenue $48,000

Cr. Income Summary $48,000

(2) Close expense accounts.

Dr. Income Summary                     $34,000

Cr. Salaries and Wages Expense $26,500

Cr. Supplies Expense                    $7,500

(3) Close net income/(loss).

Dr. Income Summary                    $14,000

Cr. Retained earning                     $14,000

(4) Close dividends.

Dr. Retained earning $3,000

Cr. Dividends              $3,000

Explanation:

Closing entries are made to close the temporary account at the end of the period. All the revenue, expenses, net income, and dividend account are closed.

All the expense and Revenue accounts are closed into the income summary account. The net balance of income summary account is transferred to Retained earning account. dividend account is also closed in the retained earning account.

7 0
3 years ago
Grimm Manufacturing is trying to determine the equivalent units for conversion costs with 15,000 units of ending work in process
nikitadnepr [17]

Answer: 36000 units

Explanation:

Ending work in process = 15,000 units

Completion rate = 40%

Total physical units = 45,000

The units completed will be:

= Total Units - Ending working in process

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= 30,000

Since only 40% of the ending work in process inventory units has been completed, the completed units will then be:

= 15,000 × 40%

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= 6,000 units.

Then, the equivalent units for conversion costs for the current period will be:

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= 36,000 units.

7 0
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How to get all one hundreds on report card
Aleksandr [31]

Answer:

well thats easy all you have to do is get a good grade on every single assignment in every class

Explanation:

which is very hard

5 0
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Basile [38]
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saw5 [17]

Answer:

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