Answer:
option a
Explanation:
owner keeps all the profits
Answer:
B. False.
Explanation:
A subject Matter Expert basically champion the course of implementing the best practice in his/her area of expertise. He is there to provide the know-how and answers questions in relation to his area of expertise.
Answer:
Option C. A debit to Equipment for $620, a credit to Cash for $140, and a credit to Accounts Payable for $480.
Explanation:
The reason is that the equipment has been acquired by the business which is worth $620 and this means that the equipment which is asset in nature must be increased by it fair value which is $620. The purchase of equipment requires the payment of $140 at the spot which means that the cash asset will be reduced by $140 and the remainder $480 will be paid in future which means that the current liabilities will be increased by $480.
Increase in Equipment (fixed asset) is debited by $620.
Decrease in Cash (asset) is credited with $140.
Increase in current liability is always credited and in this case must be credited with $480.
Journal entry in nutshell is as under:
Dr Equipment $620
Cr Cash Account $140
Cr Accounts Payables $480
Answer:
B. giving loans
Explanation:
The reserve requirement system requires commercial banks to maintain a small fraction of their deposits as a reserve. Only a small percentage of the checkable deposits is required to be held in the banks as reserves. The reserves requirement fractions vary with the monetary policy in place.
The percentage of reserve requirement ranges from 3% to 10%. It would hardly get to 20%. The rest other bigger percentage ( over 80%) is available to be used to create loans.
Answer:
a) $1,918.17
b) 16.8 months
C) Yes, Capstone Turbine will remain in business.
Explanation:
a) To find the monthly cash expenses, we have:
Monthly cash expenses = negative cash flow from operations / 12
= 23018 / 12
= $1,918.17
b) To find the ratio of cash to monthly cash expenses, we have:
Ratio of cash to monthly cash expenses = Year end cash / monthly cash expenses
= $32,221 / $1,918.17
= 16.797
≈ 16.8 months
c) Yes, Capstone Turbine will remain in business because the calculated ratio above shows that they have cash to continue operations for approximately 16.8 months.
