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4 years ago

Financial accounting is utilized by ________ in order to make business decisions:

Business

1 answer:

alex41 [277]4 years ago

6 0

Answer:

a. stockholders and creditors

Explanation:

Financial accounting is utilized by stockholders and creditors in order to make business decisions.

The shareholder use financial accounting reports to determine if the company's performance is as expected and to decide if more money should be invested or funds invested be pulled out (through the sales or transfer of equity).

Creditors use financial accounting to analyze the ability of the company to pay up debts owed to them when due, also to know if to continue to extend credit facilities to the organization.

Production employees rarely use financial accounting, rather, they are more concerned with management accounting considering elements like production cost, material variances, sales budget etc.

Customers are predominantly concerned about the availability of products and the presence of close substitute.

Hence the right option is a.

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Which of the following statements about S corporations is most accurate? Any corporation willing to pay the necessary fees and f

Vedmedyk [2.9K]

Answer:

The major attraction of S corporations is that they avoid the problem of double taxation

Explanation:

Am S corporation is also called a small enterprise corporation that providers liability protection for its owners.

The business is considered.to.ba an independent entity, so if the corporation is liable to pay a judgement sum the owners will not be asked to use their personal funds to repay.

One key feature.os S corporation is that tax is passed along. The tax to be paid by the business is transfered to the owners.

So taxis only paid once. This avoids double taxation where the business is taxed and owner also taxed.

4 0

3 years ago

A firm claims on its website that it has been in the same location for over 50 years and has lower overhead than other firms bec

aliina [53]

Answer:

Lower overhead leads to lower prices and higher profit margins. However, fixed costs of acquiring the land are just one of the components of total overhead.

Explanation:

Overhead costs are costs that are not directly associated with running a business, like accounting or legal costs or in this case costs of acquiring land. Since these indirect costs vary and are not the same in every period, they are supposed to be measured monthly. However, small overhead definitely places a business in better position than the competition, as it can charge fewer price for its products and could lead to increase of profit margin. Bought land is just one of the factors that is included in these indirect costs, however if total overhead is really lower, than the firm's claims can be perceived as true.

3 0

4 years ago

Luther Inc., has 4,000 shares of 5%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock o

Ivahew [28]

Answer:

$12,000

Explanation:

For computing the preferred dividend, first we have to find out the yearly dividend which is shown below:

= Number of shares × par value per share × dividend rate

= 4,000 shares × $50 × 5%

= $10,000

In 2017, the dividend was paid of $8,000

Remaining dividend left is $10,000 - $8,000 = $2,000

So, the total preference dividend in 2018 would be

= Yearly dividend + remaining dividend left

= $10,000 + $2,000

= $12,000

Out of $40,000, the $12,000 will be paid to preferred stockholders and the remaining $28,000 will be paid to equity stockholders

7 0

3 years ago

The manager provided the following information. Direct manufacturing labor hours: 2,400 hours Actual units produced: 12,000 unit

Naya [18.7K]

Answer:

Labor efficiency variance = $5,760 (Favorable)

Explanation:

We know,

Labor efficiency variance = (Standard hour - Accrual hour) × Standard rate

Given,

Accrual hour = 2,400

Standard hour = Budgeted direct manufacturing labor hours × Actual units produced

or, Standard hour = 0.22 × 12,000

Standard hour = 2,640 hours.

Standard rate = $24.

Putting the values into the formula, we can get

Labor efficiency variance = (2,640 - 2,400) hours × $24

Labor efficiency variance = 240 × $24

Labor efficiency variance = $5,760 (Favorable)

As standard hours is higher then actual hours, it is a favorable situation.

7 0

3 years ago

4. Does inflation cause a change in demand? Explain the role of inflation in determining demand.

brilliants [131]

Answer:

Inflation is an increase in the general price level in an economy. It is probably caused by the relative increase in the amount of money in relation to the available economic production. If the social money supply increases and the country's production is not matched, the average price level will rise due to the increased demand for goods. Due to the price increases, the value of money, the purchasing power of money, decreases. You can buy less for the same amount, thus lowering demand.

5 0

3 years ago