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3 years ago

Which of the following statements about cash basis accounting and accrual basis accounting is correct? Multiple Choice

Business

1 answer:

Fynjy0 [20]3 years ago

6 0

Answer:

d. Accrual basis accounting provides a better measure of operating performance than cash basis accounting.

Explanation:

Accrual basis accounts for the transactions related to the transactions of the company during the period and related to the period, whereas anything which only involves cash inflow or outflow is only reported under cash system.

Therefore, accrual basis is more transparent and logical in realizing and computing the net income, and analyzing the performance of the company.

Therefore, correct answer is statement d.

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Demand-pull inflation is caused by: An increase in aggregate supply. An increase in resource costs as an economy's production ca

frosja888 [35]

Answer:

Excessive aggregate demand in relation to an economy's production capacity.

Explanation:

The demand and the pull is the upward movement in the prices that follows a shortage in supply. As per the economists, they describe it as the too many dollars that are followed by too few goods.

Thus when the combined demand in the economy strongly is outweighed by the combined supply and thus the prices tend to go up. Hence the excessive increase of the demands pulls up the production capacity.

5 0

3 years ago

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:

slavikrds [6]

Answer:

Wildcat, Inc.

WILDCAT, INC. Cash Budget (in millions)

Q1 Q2 Q3 Q4

Beginning cash balance $78.00 $115.90 $48.45 $83.40

Net cash inflow 37.90 -67.45 34.95 71.05

Ending cash balance $115.90 $48.45 $83.40 $154.45

Minimum cash balance -40.00 -40.00 -40.00 -40.00

Cumulative surplus (deficit) $75.90 $8.45 $43.40 $114.45

Explanation:

a) Data and Calculations:

Q1 Q2 Q3 Q4 Q1

Sales (in millions) $165 $185 $205 $235 $180

Accounts receivable at beginning of the year = $71 million

Collection period = 45 days = 50% in each quarter and 50% in the next

Purchases for the quarter = 45% of next quarter's forecast sales

Payment period = 36 days

Wages, taxes, etc. = 20% of sales

Q1 Q2 Q3 Q4 Q1

Sales (in millions) $165 $185 $205 $235 $180

Cash collections:

50% quarter of sales 82.50 92.50 102.50 117.50

50% next quarter 71.00 82.50 92.50 102.50

Total cash collections 153.50 175.00 195.00 220.00

Purchases 83.25 92.25 105.75 81.00

Cash Payments:

80% month of purchase 66.60 73.80 84.60 64.80

20% following purchase 16.65 18.45 21.15

Total purchases payments 66.60 90.45 103.05 85.95

Wages, taxe, etc. 33 37 41 47

Interest and dividends 16 16 16 16

Capital outlay 99

Total cash disbursements 115.60 242.45 160.05 148.95

Net cash inflow 37.90 -67.45 34.95 71.05

Cash, beginning = $78 million

Desired minimum balance = $40 million

5 0

2 years ago

Which is not an example of a behavior exhibited in a market economy?

Diano4ka-milaya [45]

Answer: market economy’s do not have government interference in businesses

Explanation:

5 0

3 years ago

Dave and Kelly are discussing how quickly products now become obsolete in their industry. David believes this will make it more

Paha777 [63]

Answer: Incorret

Explanation: This is incorrect because the more information we have about the market and the obsolescence time of our products, the better we will be able to coordinate the marketing strategy so that the time spent will be paid with greater profits in the future.

For example, appliances affected by competition or improvements become appliances that replace the previous ones if you do not evaluate the obsolescence time of these items, it is likely that when our product is launched, there is already a better one in the market.

6 0

2 years ago

In his report, Wade described the strengths and weaknesses of each of his subordinates. He made a note of their past performanc

elixir [45]

Answer:

Written essay

Explanation:

Written essay method is an approach of performance appraisal, where appraiser prepare a written statement about the strength and weekness of employee to appraise their performance, these strength and weekness are evaluated on the basis of past performance at the employment. It also suggest solution for performance improvement. It is one of the effective method of performance appraisal, however, it is time consuming.

In the given case, Wade have described strength and weekness of each subordinates and also suggested technique to improve performance, therefore, wade is using Written essay method of performance appraisal.

6 0

3 years ago