Answer:
d.Prepaid Insurance
Explanation:
At the end of the accounting year temporary accounts are closed to capital account.
Temporary accounts include revenue accounts, expense accounts, gains and losses. These accounts now begin the new year with zero balances. They are used to determine profit or loss position at year end.
Permanent accounts on the other hand are not closed, but balance is carried forward to next year.
Prepaid insurance is a permanent account and is not closed at end of year.
E)
Diversification is a corporate strategy to enter a new market, where the business does not currently operate, and it provides a new product for that new market.
Answer:
Since there is not enough room here I used an excel spreadsheet. I assumed that all sales and expenses were collected and paid in cash.
Answer:
Who Benefits From Inflation? ... In other words, inflation can provide businesses with pricing power and increase their profit margins. If profit margins are rising, it means the prices that companies charge for their products are increasing at a faster rate than increases in production costs.
Explanation:
Answer:
True
Explanation:
The statement is true; companies usually attain extra financing either by debt or equity (Preferred stock or common stock). Organisations for the most part have a decision with respect to whether to look for Preferred stock, common stock or Debt financing. The decision frequently relies on which source of financing is most effectively available for the organisation. Firms and organisation use that extra funds from stock to invest in new ventures and to buy new machinery, which increases the overall assets of the company.