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Leokris [45]
3 years ago
5

Although the use of debt provides tax benefits to the firm, debt also puts pressure on the firm to: I) meet interest and princip

al payments, which if not met can put the company into financial distress; II) make dividend payments, which if not met can put the company into financial distress; III) meet both interest and dividend payments, which when met increase the firm cash flow; IV) meet increased tax payments, thereby increasing firm value
Business
1 answer:
Hunter-Best [27]3 years ago
6 0

Answer:

I) meet interest and principal payments, which if not met can put the company into financial distress

Explanation:

Among the given options the first option is correct with respect to pressure on the firm as if the payment of debt is not given so the chances of liquidation of the firm are high that comes under the bankruptcy

So while taking the debt we need to pay the interest and principal payments so that the chances of the liquidation would be less

hence, the first option is correct

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A comparison of the subsidiary accounts to the schedules of accounts payable will help the accountant to <u>A. prove the accounts payable accounts at the end of a period.</u>

<h3>What is a Subsidiary Account?</h3>

A subsidiary account tracks the information of certain transactions in detail. Some of the most important subsidiary accounts include accounts receivable and accounts payable.

Thus, by comparing the subsidiary accounts to the schedules of accounts payable, an accountant proves the existence and completeness of the accounts payable balance at the end of a period.

Learn more about subsidiary accounts here: brainly.com/question/4656883

6 0
3 years ago
Coffee Klatch Party Group, a political organization, files a claim to challenge a Delaware statute that limits the liberty of al
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Answer:

c. substantive due process

Explanation:

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3 years ago
What actions could employers and government take to encourage saving in society?
kozerog [31]
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4 0
4 years ago
The Wyeth Corporation produces three products, A, B, and C, from a single raw material input. Product A can be sold at the split
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Answer:

processed further and then sold.

Explanation:

Final sales value after further processing $ 58,000  

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6 0
3 years ago
Assume there are routine inventory sales between parent companies and subsidiaries. When preparing the consolidated financial st
lana66690 [7]

Answer:

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When businesses are said to be involved, gross profits in business is simply revenue from sales minus the costs to achieve those sales. In several cases, some people might say sales minus the cost of goods sold. It tells you how much money a company would have made if it didn’t pay any other expenses such as salary, water, electricity, income taxes, copy paper, rent and so forth for its employees. It's calculation is simple and done by subtracting cost of the goods sold from revenue. That is:

Gross Profit = Total Revenue - Cost of Goods Sold (COGS).

6 0
3 years ago
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