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2 years ago

What does non current assets mean

Business

1 answer:

coldgirl [10]2 years ago

6 0

Answer:

assets whose value is not realized in the current year

Explanation:

A noncurrent asset is generally a long-term investment whose value will not be fully realized in the current accounting year. The cost of the asset is allocated over the period the asset is in use, rather than being expensed in the year it is acquired.

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Give at least one disadvantage of incorporation and explain why it is a disadvantage.

Naya [18.7K]

Answer:

1. Lack of ownership

2. Higher taxation

3. Legalities and formalities

Explanation:

An incorporated company is one that has a separate legal entity from that of its owner and shareholders. Disadvantages of an incorporated company include:

Lack of ownership

An incorporated business is a separate entity from its owner. Hence, separate bank accounts would be required along with separate business identification since personal identification would not be sufficient. At the same time, personal funds must be kept separate from business funds. Mixture of the two is an offense against the law. Also, as shareholders are involved, they may have voting rights, hence, the owner will not have a complete say in all business activities.

Higher taxation

Incorporated companies are expected to pay higher taxes whilst others may have minimum taxable limits. The owner will have to pay income tax as well as corporate taxes. They will also accumulate other expenses such as accounts and legal fees whilst processing these complex taxation methods.

Legalities and formalities

Incorporating a business in itself requires complex procedures and a lot of paperwork. After this has been accomplished, the company is still expected to follow strict codes of conduct such as those provided by the Companies Act. This would include the way borrowings and lending occur, investments, dividend provisions, meetings and audits. They will also have to register documents under the Registrar of Companies.

5 0

3 years ago

. Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To bu

VladimirAG [237]

Answer:

The correct option is B

Explanation:

In order to compute the profit, the accountant consider the Explicit cost so,

Explicit Cost = Borrowed amount × Interest rate + Ingredients amount

= $30,000 × 3% + $25,000

= $259,000

Where Revenue is $60,000

Profit = Revenue - Explicit Cost

= $60,000 - $259,000

= $34,100

Economic Profit is computed as:

Economic Profit = Total Profit - Implicit Cost

= $34,100 - $40,600

= - $6,500

where

Implicit Cost = Salary + Interest

= $40,000 + ($20,000 × 3%)

= $40,000 + $600

= $40,600

Therefore, Louis says profit is $34,100 and Greg says she lost $6,500

5 0

3 years ago

A particular stock has a dividend yield of 1.5 percent. Last year, the stock price fell from $82 to $68. What was the return for

alexandr1967 [171]

Answer:

The return for the year is -15.57%.

Explanation:

We have the formula to calculate Return for the year as:

* Return for the year = Dividend yield + Capital Gain/(Loss).

in which:

* Dividend yield is given at 1.5%;

* Capital Gain/(Loss) = Price at year end/ Price at the beginning of the year - 1 = 68/82 -1 = - 17.07%;

So we have:

* Return for the year = Dividend yield + Capital (Loss) = 1.5% - 17.07% = -15.57%.

Thus, the answer is -15.57%.

7 0

2 years ago

The seller of product a has no idle capacity and can sell all it can produce at $60 per unit. outlay (variable) cost is $12. wha

Marrrta [24]

The answer is $48.

The seller of product a has no idle capacity and can sell all it can produce at $60 per unit. outlay (variable) cost is $12. $48 is the opportunity cost, assuming the seller sells internally

It is calculated as follows:

Opportunity cost= Production cost- Outlay cost

= 60-12

=$48

Opportunity costs represent the potential benefits which any individual or investor, or any business misses out on when choosing one alternative over another.

Because the opportunity costs are generally unseen by definition, they can be easily overlooked. Understanding of the potential missed opportunities when any business or any individual chooses one investment over another investment allows for better decision making.

To know more about opportunity cost here:

brainly.com/question/13036997

#SPJ4

5 0

2 years ago

The following information is available for Blossom Company:

Aleonysh [2.5K]

Answer:

Total Assets = $124,510

Total Liabilities = $38,320

Total Stockholders' equity = $86,190

Explanation:

Blossom Company

Balance sheet

As at December 31, 2022

Assets

Current assets

Cash $6,390

Accounts receivable 2,100

Supplies 3,800

Inventory 2,920

Total current asset $15,210

Non-current asset

Equipment (net) 109,300

Total assets 124,510

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable $4,500

Interest payable 670

Unearned service revenue 820

Salaries and wages payable 830

Total current liabilities $6,820

Long-term liabilities

Notes payable 31,500

Total liabilities $38,320

Stockholders' equity

Common stock 58,900

Retained earnings (Balancing amount) 27,290

Total stockholders' equity $86190

Total liabilities and stockholders' equity $124,510

8 0

3 years ago