Answer:
The false statement is letter "A": As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
Explanation:
Indeed, the value of a firm represents its value before deducting what the company owes. Though, in order to calculate the correct multiple, specialists tend to divide the debt by a measure of income or cash flows before interest payments go through.
Answer:
The accrued interest on the note at December 31, 2019 is $206.25
Explanation:
Fashion Jewelers accepted a 5-month, 11% note for $7,500.
The amount of interest for 1 year = 11% x $7,500 = $825
The amount of interest for 1 month = $825/12 = $68.75
From October 1, 2019 to December 31, 2019, Fashion Jewelers has accepted the note for 3 months.
The accrued interest on the note at December 31, 2019 = $68.75 x 3 = $206.25
The correct answer is the agent and principal will be jointly and severally liable on the contract.
In general, an agent is not accountable for contracts made; the principal is. However, the agent will be held culpable if he is not or only partially revealed, if the agent lacks or exceeds authorization, or if the agent entered into the transaction in a personal role.
When an agent works on behalf of the principle in interactions with a third party, a contractual relationship is formed between the main and the third party, and the agent is not personally accountable.
Therefore, the correct option is the agent and principal will be jointly and severally liable on the contract.
To know more about principal agent liability click here:
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Answer:
Direct method
Explanation:
There are three types of activities in the cash flow statement under the direct method
1. Operating activities: It records those transactions which are related to the cash receipts and cash payments.
Like:
Cash flow from Operating activities
Collections from customers
Less: Cash paid to suppliers and employees
Less: Interest and taxes paid
Net Cash flow from Operating activities
2. Investing activities: It records those activities which include purchase and sale of the long term assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
