The amount of his monthly net cash flow is the best example of qualitative information
The choice usefulness, decision model approach to accounting theory plays a significant supportive role in the utilization of qualitative traits or qualities required for information. The attributes that make the data supplied in financial statements valuable to users are referred to as qualitative qualities.
Fundamental qualitative traits that are desired in accounting information are produced by the demand for accounting information from investors, lenders, creditors, etc. Accounting information has six distinct qualitative traits.
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Answer:
B. Accept X and reject Y
Explanation:
Here are the options
A. Accept both X and Y
B. Accept X and reject Y
C. Reject X and accept Y
D. Reject both X and Y
E. The answer cannot be determined based on the information provided
the project should be accepted if the WACC of the department is less than the rate of return on the project
WACC = weight of equity x cost of equity + weight of debt x after tax cost of debt
weight of debt = D / (D + E) = 0.45E /1.45E
weight of equity = E / (D + E) = E / 1.45E
WACC = ( 0.45E /1.45E) x (5.1) + ( E / 1.45E) x 14.7
= 5.1 x (0.45/1.45) + 14.7 x (1/1.45)
=1.583 + 10.138
11.72%
Division X's WACC = 11.72% - 0.5% = 11.22%
Division Y's WACC = 11.72% + 1% = 12.72%
The rate of return of Division Y's project is 12.3%. Thus, division Y's project should not be accepted
the rate of return of Division X's project is 11.64%. Thus, division X's project should be accepted
Answer:
National income
Explanation:
Income method of gross domestic product (GDP) measurement is focused onto the accounting fact that almost all economic spending should be equivalent to the amount of revenue earned by the output of all consumer products and services.
This method also supposes that an economy has 4 major production determinants and all earnings must go to any of these 4 sources. Thus a simple calculation of the gross tangible value of commerce over a span could be made by combining all revenue sources.
Thus, from the above we can conclude that the correct option is C.
Answer: that is being stated above is letter A. buying cheaper alternatives when a product becomes expensive. Buying cheaper alternatives when a product becomes expensive is an example of an action which best describes the substitution effect.
Explanation:
Answer: The correct answer is choice a.
Explanation: The continuous review model works under the assumption that there is a constant demand for a product, regardless of other factors. There is a preset level of inventory, and when it gets to that level the product is automatically ordered and additional items are brought back into inventory. This makes choice a the one that is NOT an assumption - the order quantity is not constant regardless of demand. The item is not ordered until a preset order point is reached.