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sammy [17]
3 years ago
5

g The lower risk nature of longminusterm debt in a​ firm's capital structure is due to the fact that​ ________. A. the debt hold

ers are the true owners of the firm B. equity capital has a fixed return C. creditors have a higher position in the priority of claims DO. dividend payments are tax minus deductible
Business
1 answer:
IRINA_888 [86]3 years ago
8 0

Answer:

The correct option is C states that creditors have a higher position in the priority of claims.

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What job did drivers perform on large southern plantations?
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3 years ago
Phoenix Farm, a firm that sells farm products, gathers fresh food products in one place for its customers. Customers can buy egg
natali 33 [55]

Answer:

Retailer

Explanation:

When a producer directly sells the goods to customers, who directly consume the goods rather than further sale, then the producer or seller is termed as retailer.

Goods on retail simply means sales for direct consumption.

Here, Phoenix Farms produces fresh food products which are directly consumables and are sold directly rather than involving intermediaries thus, he is a <u>retailer</u>.

5 0
3 years ago
Psymon Company, Inc. sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial ba
Anestetic [448]

Answer:

1. Multi-step income statement Internal Reporting Purposes

Sales Revenue                                                                  258,500

Less Sales Returns and Allowances                                  (8,700)

Less Sales Discounts                                                          (11,400)

Net Sales                                                                            238,400

Less Cost of Goods Sold                                                  (138,800)

Gross Profit                                                                          99,600

Less Operating Expenses :

Salaries and Wages Expense                          23,800

Office Expense                                                  24,800    (48,600)

Operating Income/(loss)                                                     51,000

Less Non- Operating Expenses :

Interest Expenses                                              3,700

Income Tax Expense                                         14,190     (17,890)

Net Income/Loss                                                                 33,100

2. Multi-step income statement External Reporting Purposes

Net Sales                                                                            238,400

Less Cost of Goods Sold                                                  (138,800)

Gross Profit                                                                          99,600

Less Operating Expenses :

Salaries and Wages Expense                          23,800

Office Expense                                                  24,800    (48,600)

Operating Income/(loss)                                                     51,000

Less Non- Operating Expenses :

Interest Expenses                                              3,700

Income Tax Expense                                         14,190     (17,890)

Net Income/Loss                                                                 33,100

Explanation:

It is important to remember that a multi-step income statement shows separately profit earned from <em>Primary Activities</em> of the firm and that earned from <em>Secondary Activities</em>.

There are no strict rules for preparation of Financial Statements for <em>Internal use</em> and this may include many other line items. However for <em>external reporting</em> proposes, preparers of financial statements have to comply with Accounting Standards (GAAP or IFRS).

8 0
3 years ago
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