Answer:
Time value of money
Explanation:
The reason is that the money invested today worth more tomorrow. If we have option to pay our supplier $5m after a year is more suitable option than paying him today. The reason is that the amount paid today will be worth $5m but if we pay our supplier after a year then in real terms we have paid the supplier less because money lost its worth by certain percentage during the year. So paying late makes the liability cheaper required their are no interest or other costs.
Answer:
c. Risk is higher if a company has more assets.
Explanation:
Financial leverage is the measurement of risk based on the debt of the company. More liabilities involves high risk because company does not have enough to pay for the it's liabilities. If company has more assets then the risk if lower because company is able to pay its liabilities from its assets. The statement " Risk is higher if a company has more assets" is incorrect.
As sue explains to professor klein, in a business process, activities interact to achieve a business function. Different activities of a business need to work with each other to achieve a common goal. If the functions of a business do not align, the end result will likely not happen because each part of the business needs to work together.
The answer is D all of the above
Answer:
Operating activities
Explanation:
Operating activity of a business is the function that a business performs that is directly related to provision of goods and services to customers. It is the core business activity.
For example a car production company has manufacturing as its core operating activity.
In this scenario Hollis, an individual, makes a cash contribution to a nongovernmental not-for-profit organisation and is considered as an investment in the cultural future of the city where Orchestra Y is located.
Since the contribution is for investment in the community and this is a core function of the NGO, it can be reported as cash flow from its operating activities
