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Wewaii [24]
3 years ago
14

If you wanted to make sure a company has enough money available to pay its bills, which financial statement would be most helpfu

l? A. Balance sheet B. Income statement C. Statement of owners' equity D. Cash flow statement Please select the best answer from the choices provided A B C D
Business
1 answer:
LenaWriter [7]3 years ago
5 0

Answer:

D. Cash flow statement

Explanation:

A cash flow statement refers to a financial statement which is used to record and summarize the amount of liquid assets (cash and cash equivalents) entering and leaving a business entity.

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

Hence, if you want to make sure a company has enough money available to pay its bills, the financial statement which would be most helpful is the cash flow statement because it is used to measure and analyze how well the company is doing financially in terms of generating revenue to pay its bills and debts.

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For each of the following items before adjustment, indicate the type of adjusting entry (prepaid expense, unearned revenue, accr
igor_vitrenko [27]

Answer:

See explanation

Explanation:

(a) Assets are understated - If we do not adjust accrued revenue, the assets are understated. For example - if we do not add any outstanding rent revenue, the assets will become understated.

(b) Liabilities are overstated - If we do not adjust unearned revenue, the liabilities are overstated. For example - if we do not deduct any expired unearned revenue, the liabilities will become overstated.

(c) Liabilities are understated - If we do not adjust accrued expense, the liabilities are understated. For example - if we do not add any outstanding rent expense, the liabilities will become understated.

(d) Expenses are understated - If we do not adjust accrued expense and prepaid expense, the expenses are understated. For example - if we do not add any outstanding rent expense and expired prepaid expenses, the expenses will become understated.

(e) Assets are overstated - If we do not adjust prepaid expense, the assets are overstated. For example - if we do not deduct any expired prepaid insurance, the assets will become overstated.

(f) Revenue is understated - If we do not adjust accrued revenue and unearned revenue, the revenue is understated. For example - if we do not add any outstanding rent revenue and expired unearned revenue, the revenue will become understated.

3 0
3 years ago
Money that has been or will be paid regardless of the decision whether to proceed with the project is:
bezimeni [28]

Answer:

Sunk costs.

Explanation:

Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.

Example

ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.

Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.

4 0
2 years ago
Van, a friend of yours from high school, recently called. He asked if you could explain to him how the value of his portfolio wo
12345 [234]

Answer:

Van is asking about Investment area of finance.

Explanation:

  • The developments reported can affect the market sentiments generally.
  • The service provided by the Finance professional to his investor friend in the given context is advice regarding Investments.
  • A investment is a resource or thing gathered fully intent on creating pay or acknowledgment.
  • In a monetary viewpoint, a venture is the acquisition of merchandise that are not devoured today however are utilized in the future to produce abundance

Learn more about investment, refer :

brainly.com/question/14847954

6 0
2 years ago
Social network marketing is thought of as being earned and is not a strategy for which a company has to pay. False or True
Butoxors [25]

Answer:

True

Explanation:

I just took the quiz and got 100% correct trust me

Put a thanks

Thank you

8 0
3 years ago
Francisco's credit card has an APR of 13%, calculated on the previous
lora16 [44]

Answer:

$279.53

Explanation:

The amount of the $5200 charge that Francisco made during the first month has been paid off will be the total of the principal paid which is:

Principal paid =

$47.67+$47.23+$46.80+$46.37+$45.94+$45.52

=$279.53

Therefore how much of the $5200 charge that Francisco made during the first month has been paid off will be $279.53.

5 0
2 years ago
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