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navik [9.2K]
3 years ago
10

As a small business owner in today’s economy, what three financial reports would you use on a regular basis? What information wo

uld you find on each statement? What decisions might each statement help you make? Please provide specific examples.
Business
1 answer:
nalin [4]3 years ago
6 0

Answer: Balance Sheet

Profit and Loss Statement

Cash Flow Statement

Explanation:

Balance Sheet or the statement of Financial Position  is a report that shows the assets that your business owns against your equity and liabilities. This report can help you make asset purchasing decisions or decisions about how to fund the acquisition of new assets.

Profit and Loss Statement: shows a detail of the income your business has earned, the expenses you incurred to earn this income and your profit/loss. This report can help you figure out if your expenses are too high or the prices you charge for your goods/services are too low.

Cash Flow Statement: shows your liquidity position at different points during a financial period. This report is important as it allows you to see periods when you may need an extra inflow of funds to keep your business operational and can help you decide when to apply for bank loans or whether to delay the purchase of some assets.

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Albright Company produces a variety of products, some in labor-intensive departments and some in heavily automated departments.
Elodia [21]

The given statement is TRUE

Explanation:

The global overhead rate is a standard overhead rate used by a company to transfer all of its overhead cost for production to goods or objects of cost. It is most widely used with simple cost models in smaller businesses.

In fact, the typical company prevents the use of a single overhead rate throughout the whole plane, instead using a small number of separately allocated cost pools with different overhead rates. In this way, the overall assignment is improved, but the time necessary to close the books is increased. There is a balance between a larger transparency effort to track and distribute multiple expense pools and the improved consistency of this additional effort in the financial statement.

3 0
4 years ago
A company received $11,000 cash in exchange for 200 shares of the company’s common stock. What would the effect of this transact
MAVERICK [17]

Answer:

B. $11,000 increase in Assets; No effect on Liabilities; $11,000 increase in Stockholders’ Equity

Explanation:

As the company received cash in exchange for the common stock. So, it affect the accounting equation which is shown below:

Total Assets = Total liabilities + Total  stockholder equity

The journal entry is shown below for better understanding:

Cash A/c Dr XXXXX

     To Common stock XXXXX

     To Additional Paid-in capital - in excess of  par XXXXX

(Being cash is received)

So, it would not impact the total liabilities

7 0
3 years ago
Sadie and Ted must divide a stove, a hut, a chest, a nightstand, an igloo, and a trashcan. They assign points to each item as fo
Ulleksa [173]

Answer:

a. Ted gets the hut; Sadie gets the rest.

Explanation:

Since Ted placed a much more higher priority on the hut by assigning it 35 points more than all other items, and Sadie placed a very low priority on the hut by assigning it 10 points when compared to all other items, it shows Ted is ready to let go of other items just to have the hut, and Sadie is ready to let go of the hut to have the other item. Hence, the "Ted gets the hut, Sadie gets the rest" splits is efficient.

4 0
3 years ago
A rock star intentionally sets her ticket prices below what would be necessary to sell out her shows. how might this be justifie
drek231 [11]
<span>the answer to this question is: The revenue sacrificed represents a very small share of the show's revenue
The only way the show can still earn profit by selling cheap tickets is if they're gaining additional revenue from another streatm of income, such as selling merchandise on the concerts, providing beer and snacks, or selling autograph and photos</span>
6 0
3 years ago
The risks of vertical integration include all of the following EXCEPT: a. costs and expenses associated with increased overhead
aleksandrvk [35]

Answer: Lack of control over valuable assets

 

Explanation: In simple words, vertical integration refers to a process under which an organisation combines two or more stages of production which were previously performed by any other company.

The vertical integration is done where the company wants to get more hold on its supply chain with the ultimate objective of having better control over valuable assets.

Hence from the above we can conclude that the correct option is C.

5 0
3 years ago
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