Answer: The correct answer is "Material losses resulting from correction of errors related to prior periods.".
Explanation: It is generally established that the type of loss that is excluded from the determination of net income in the income statement are the material losses resulting from transactions in the company's investments account.
Answer:
Computation of the Ratio of Cash to Monthly Cash Expenses:
None of these choices are correct.
Explanation:
The correct formula is Cash and Cash Equivalents/monthly expenses. And monthly cash expenses = Negative cash flows from operations/12.
But, in doing this calculation, first determine the monthly cash expenses, as given above. With the resulting figure, you can then apply to the Ratio of Cash to Monthly Cash Expenses.
The Ratio of Cash to monthly cash expenses helps a company to assess how long it can continue to operate given the heavy expenses burden it is experiencing, if it is a startup company. It also helps a company in distress to determine how long it could continue to operate before generating positive cash flows.
Life without math cause math helps science out ,bills and taxes just calculating things overall involves math into it