All categories

2 years ago

- QI- State 2 reasons why it is necessary to prepare financial statements at regular intervals

Business

1 answer:

Liono4ka [1.6K]2 years ago

5 0

Answer:

-Better decision making

-Can prevent costly mistakes and helps in tax period

You might be interested in

On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative

Colt1911 [192]

Answer:

Earnings Per share = $0.83

Diluted Earnings per share = $0.71

Explanation:

Basic Earnings per share is how much each common stock share earns in profits and Diluted Earnings includes the options and bonds in its calculations for outstanding shares

formulas

Earnings Per share = (net income - Preferred stock dividends)/ outstanding number of shares

= $150/180

= $0.83

Diluted Earnings per share = (net income - Preferred stock dividends)/ outstanding number of shares

= $150/210

= $0.71

Outstanding number of shares in millions

opening 200

minus treasury stock - 24

issued stock 4

Basic outstanding shares = 180 shares

plus share Options 30

Diluted shares 210

8 0

3 years ago

Due to an uncertainty whether or not a new tax is applicable to printing companies, ABC Printers submitted a legal query to the

liubo4ka [24]

Answer:

No, a reversal of a ruling shall not be given a retroactive application if it will be prejudicial to the taxpayer.

Explanation:

Based on the information provided it can be said that No, a reversal of a ruling shall not be given a retroactive application if it will be prejudicial to the taxpayer. Meaning that the BIR can not assess ABC Printers for back taxes because ABC Printers was following the rulings made by BIR at that time correctly, the change in ruling applies to taxes only after the change has been made and not before. Therefore as long as ABC Printers begins paying taxes now, then the BIR has no standing.

8 0

3 years ago

Jiminy’s Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 4 percent 2 years ago. The bond cu

slega [8]

Answer:

Explanation:

The pretax cost of debt is the YTM of the bond and the aftertax cost of debt is tax-adjusted. You can use a financial calculator and key in the following inputs.

note: adjust the recurring payment and time to semiannual basis.

Maturity of the bond as of today; N = 28*2 = 56

Price of the bond; PV = -( 1.07 * 1000) = -1,070

Face value of the bond ; FV = 1,000

Semi-annual payment; PMT = (4%/2)*1,000 = 20

Compute semiannual interest rate ; CPT I/Y = 1.801%

Next, convert the semiannual rate to annual rate(YTM) = 1.801% * 2 = 3.60%

Therefore, pretax cost of debt is 3.60%

Interest paid on borrowed money (debt) has tax benefits through interest tax shield. Based on this, the after tax cost of debt can be calculated. You can solve it by adjusting the pretax cost of debt to incorporate this tax benefit. The formula is as follows;

Aftertax cost of debt = Pretax cost of debt (1-tax)

Aftertax cost of debt = 0.0360(1-0.21) = 0.02844 or 2.84%

8 0

2 years ago

8. The following transactions and events occurred during the year. Assuming that Picture Perfect Physicians’ uses the indirect m

Tom [10]

Cash and Carry control management decision

6 0

3 years ago

Luis, marlon, and victoria are counting money. they each have the same amount in dollar bills, quarters, dimes, nickels, and pen

Hoochie [10]

The characteristics is its divisibility: money can be divided into smaller parts and the sum of those parts has the same value as the original money. Here we see that different people have the same amount of money in different forms.

Other characteristics of money are its durability, transportability and the resistance to being faked.

4 0

3 years ago

Read 2 more answers