Answer:
B) Limited partnership
Explanation:
Limited partnership is one where the partners involved are liable only to the extent to which they contributed to the partnership.
Also some partners only contribute financially. That means they shielded to the extent of their contribution.
In this type of partnership there is least possible regulatory controls, faster decision making, and ease of organisation because partners actually involved in running the business are few or only one person.
It also has the advantage of being a business in which the active partner will not be forced to pay off any business debts from their personal assets.
Answer:
The correct answer is D) None of the above options are correct.
Explanation:
In making a decision about whether to own or lease a property, if the cost of ownership is only slightly higher than leasing, financial intelligence requires that the company, or business or entity or person checks to see if the property is an income is generating one.
If yes, then it's should be considered for purchase
If the asset is not income-generating but plugs a cost leakage, it can also be considered if the value can appreciate in value.
It only becomes advisable to lease the assets if:
- the cost of purchasing the property far outweighs the cost of leasing as well as the current capacity of the Clinic;
- It's an assets that is non-income generating
- If it's a non-income generating asset that attracts lots of taxes etc.
Cheers
Answer:
E. 1.667
Explanation:
Current ratio is computed as;
= Current assets / Current liabilities
Current asset = Cash $200 + Marketable securities $400 + Accounts receivable $600 + Inventory $800
= $2,000
Current liabilities = Accounts payable $500 + Notes payable $700
= $1,200
Current ratio = $2,000 / $1,200
= 1.667
Answer:
The entry to record the payment of attorneys fees by a way of share issue will be:
Dr Organization expense $5000
Cr Share capital $3000
Cr Share premium $2000
Explanation:
Firstly, the fees payable to the attorneys is $5000,hence organization expense is debited with $5000.
However, the value of the shares given is 300*$10 i.e $3000,as a result, the attorneys have indirectly paid $2000 more for the shares, the excess is recorded in paid in share capital in excess of par value account or a share premium account.
The rationale for the entries is that expense account takes debit when it increases and capital account a credit.
Answer:
See below
Explanation:
The above is an incomplete question. From a similar question, we were given cost of goods sold to be $60,800.
Firm's day sales in inventory is computed as;
= (Ending inventory / Cost of goods sold) × 365
Given that;
Ending inventory = $41,000
Cost of goods sold = $60,800
= ($41,000/$60,800) × 365
= 246days
