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stiks02 [169]
3 years ago
7

Which term can be defined as the net income that a firm reinvests in itself?

Business
1 answer:
KengaRu [80]3 years ago
6 0

Answer:

retention ratio

Explanation:

Retention ration is the portion of net income retained by a firm to grow its business rather than being declared and paid as dividened.

When a company makes profit at the end of financial period, the company can either retain part of its earning for business expansion, declare part as dividends paid to shareholder or combine both.

Where a firm now reinvest the portion of the profit earned in itself, it is called retention ratio.

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Jones Company possesses a 25 percent interest in the outstanding voting shares of Sandridge Company. Under what circumstances mi
coldgirl [10]

Answer:

Jones may decide that the equity method would not be appropriate to account for the investment when Jones Company does not have significant influences over the management/operation of Sandridge Company.

Although an investors holding from 25% of investee is very much likely to have significant influences on the investee, this may not be true all over the times. For Jones, to prove that it does not have significant influences over Sandridge, there may be some following evidences:

+ Jones and Sandridge sign an agreement that Jones surrenders  significant rights as a shareholder;

+ There is/are investor(s)/group(s) of investors who has more voting right than Jones and whose visionary/mission for Sandridge is opposite to Jones's.

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3 years ago
Choose the best statement for the body of a cover letter.
quester [9]

Answer:

C

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4 0
3 years ago
According to the public choice mode, how do policy makers arrive at their decisions?
Marysya12 [62]

Answer:E. POLICYMAKERS WILL TAKE ACTIONS THAT ARE LIKELY TO RESULT IN THEIR BEING RE-ELECTED

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On May 1, Vaya Corp. had a beginning cash balance of $175. Vaya’s sales for April were $430, and May sales were $480. During May
ella [17]

Answer:

The firm’s beginning cash balance on June 1 is $ 205.

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We have to use the following the formula to reach to the beginning cash

Beginning Cash balance june 1 = Beginning cash balance may 1 + sales - expenses

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Important. The may sales are not included in the calculation because accounts receivable time is 30 days, so may accounts receivable wont be collected until june.

7 0
3 years ago
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