Answer: Mercantilism is an economic practice by which governments used their economies to augment state power at the expense of other countries. Governments sought to ensure that exports exceeded imports and to accumulate wealth in the form of bullion (mostly gold and silver).
Explanation:
Answer:
A. $21,000
Explanation:
The temporary difference is a difference between carrying amount of an asset or liability in a Balance sheet and carrying amount of an asset or liability in its tax base. In the given scenario the temporary difference relates to installments sales which are $60,000 recorded in the book purpose. The tax base is different than the amount recorded in the company book. According to U.S. GAAP the deferred tax amount will be $60,000 * 35% which is current year tax rate.
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer with Explanation:
<u>Risk which can’t be mitigated</u>: The risks that the share price would fall due to sudden political environment instability or events that effects the economy will definitely affect the business operations as well. Thus are the risks that can not be mitigated at all. Another example would be Corona virus implications on the operation of the company which is again a risk that can't be mitigated.
<u>Risks, that aren’t worth the effort to reduce the exposure any further: </u>
The part of the sentence talks about the risk exposure which says that if the company doesn't resides in an area which is not prone to seismic activity and the chances of earthquake in a country is below 0.000001% which is almost negligible but still it is worthless to purchase the earthquake insurance. As this risk is almost negligible hence it is not worth the effort to reduce the exposure any further.
<u>Risks that wouldn't be addressed in short term due to other priorities: </u>
The risks that will not occur in the next 12 month, can be addressed after 6 months and thus allowing the company to prioritize the risks that must be resolved first. This means that if their is a risk that one of our several products that would be launched after 12 months from now will not be winning customer market can be addressed after 6 months because it is dependent on our future action. If we don't launch our product, our product is not rejected by the customer. Hence situations like this allows us to prioritize our risks.
Answer:
A cash flow statement is one of the most important statements along with the income statement and balance sheet in the financial statements.
A statement of cash flow lets the organization know how much precisely on cash that came in and went out of the organization in any given period.
a) To predict future cash flow: this is a function of the cash flow statement as it enables the organization predict from past figures through a cash projection statement which modifies and accounts for anticipated changes in price, volume, interest rates, and other factors and enables the firm know how much cash is likely to flow in and out of the entity in any given future period. This enables the firm know where it stands in terms of liquidity and also helps in budgeting and making long-term plans for the organization.
b) To evaluate management decision: The cash flow statement is a great indication of a firms liquidity which is a vital indicator a the firms ability to remain in business. The cash flow statement enables investors know the exact amount of cash the has come in and out of the organization and not the profit and loss (which can be influenced through profit smoothing). The cash flow statement portrays how well cash has been spent by the company and what the cash was spent on.
c) Predict the ability to make debt payments to lenders and pay dividends to stockholders: the cash flow statement helps the firm acknowledge how much in cash i.e. how liquid the firm is which is basically its ability to make debt payments as well as any other cash payment required such as payment of dividend. The cash flow statement also lets the firm know is it would require borrowing to make any such payment.
Explanation:
