If the return rate of the investment is higher than the interest earned while the money is in savings, it would make more sense to invest the money in order to earn higher returns.
Answer:
Both single column cash book and double column cash book are similar because they both record cash payments
Explanation:
A cash book is a book or journal used to record all business transactions within a particular period like receipts, disbursements, bank deposits and bank withdrawals. They are different cash books namely: single column cash book, double column cash book and triple column cash book.
A single column cash book is used to record payments in form of cash while a double column cash book records both cash payments as well as bank transactions.
Both single column cash book and double column cash book are similar because they both record cash payments
Answer:
14.06%
Explanation:
The computation of the cost of common equity using the DCF method is shown below:
Cost of Common Equity = [Ending year dividend ÷ Price per share] + growth rate
= [$2.31 ÷ $25.50] + 0.05
= 14.06%
We simply applied the above formula by considering the ending year dividend, price and the growth rate so that the correct percentage could come
Answer:
Option (A) is correct, adjusted trial balance is prepared before journalizing all transactions is not true.
Explanation:
Adjusting trial balance lists closing balance of all accounts after preparing adjusting entries. It is summary of all accounts to ensure that debit and credit sides of accounts match.
Adjusted trial balance help in preparing financial statements as all adjustments are taken into account. Ledger balances are posted in adjusted trial balance. So, all statements are correct except (A).
Answer:
The correct answer is A
Explanation:
Short term restrictive financing policy is the policy which is entails the low ratio of the current assets to the sales. This policy is grounded on the liabilities which are short term in nature.
In order to maintain the low ratio of the current assets to the sales, one needs to purchase or bought the inventory
