Answer:
A. Liquidity management is a balancing act, managers try to find liquidity levels that are neither too high not too low.
Explanation:
Maintaining proper liquidity is an important financial objective of management. Proper liquidity management demands that an entity should be able to meet his short term financial obligation and making sure that liquid assets of the entity are not idle. In order to achieve this, the best way to go is to maintain a level that is neither too high and not too low. Not too high means the entity is not holding too much cash or liquid assets than it currently need to meet its short term financial obligation.
For example, not keeping too much cash in current account but investing them in interest-earning investment assets.
Not too low means the cash or liquid assets held by an entity should not less than the amount needed to meet its short term financial obligation. For example, making sure that the entity has enough cash or readily convertible liquid assets that can be used to pay vendors, rent, interest and meet other short term financial obligation.
Option B is false because keeping too much does not help to maximize short term earnings which is a feature of proper liquidity management. Option C is wrong because there is no guideline to support that deferring coupon payment won`t attract payment and this does not connote proper liquidity management.
Option D is obviously false and does not describe proper liquidity management.
Answer:
Okay
Explanation:
The answer is jjgxhkdyyffhohohugugojjhyfyffygihhhyghv28283939
Answer:
C.105,500 units
Explanation:
Equivalent unit of production is the quantity of work done in the manufacturing / production department. It also includes the completed percentage portion of the units in work in process.
Units complete and transferred = Beginning units + Additions - uncompleted units = 10,000 units + 100,0000 units - 15,000 units = 95,000 units
Equivalent Units = Units complete and transferred + ( Closing units x percentage completion )
Equivalent Units = 95,000 + ( 15,000 x 70% )
Equivalent Units = 95,000 + 10,500
Equivalent Units = 105,500
Answer:
The correct answer is 'Option (b)
Explanation:
Cole co. should compare between actual interest incurred on all the debts and the calculated interest on weighted average accumulated expenditure and lower of these two should be capitalized.
Actual interest incurred =$50,000+20,000 = $70,000
Calculated interest = $40,000
Lower of these two to be capitalized for the building during 2011= $40,000
The answer to this question is a material breach. A material breach is a breach of contract where in the other party failed to provide or perform what is needed in the contract. This also shows that the contract can no longer be completed.
