Answer: Compliance review
Explanation: A compliance review can be defined as an audit done with the objective to assess whether the company is following the regulatory guidelines. In such a review the auditor tries to determine if the items that being examined complies with the set standards.
In the given case, Drew is writing the report to spread the information that they are following all the guidelines related to safety and quality.
Thus, from the above we can conclude that the correct option is C.
Answer:
Free cash flow for year 1 = -$1m
Explanation:
Lets first understand what free cash flow is. Free cash flow is the cash generated by a business that is freely available for distribution to all investors after having met all the immediate obligations, investment in non-current assets and investment in working capital. Since it's cash flows we have to add back non-cash items such as depreciation and amortization.
The question is asking for free cash flow for year 1 therefore we take data for the year 1 as follows:
Free cash flow for year 1 = $5m + $2m - $6m - $2m
Free cash flow for year 1 = -$1m
Seems entity has net cash outflows that's why the cash flows are negative.
When a partnership is liquidated, the journal entry to pay the claims of creditors would include a debit to:
B.) each individual creditor and a credit to cash.
When you liquidate a partnership, liabilities must be paid off before partner's investments can be returned to them. In this way, all creditors will be satisfied even if the partner's capital experienced a loss.
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