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ollegr [7]
3 years ago
11

Identify the importance of accounting by selecting the statement that is correct below. Multiple choice question. Accounting inf

ormation helps users make business and financial decisions. Accounting is a system that identifies, records and communicates an organization's business activities. Accounting information is primarily used only at the end of a year when tax returns and financial statements are prepared.
Business
1 answer:
Zielflug [23.3K]3 years ago
6 0

Answer:

Accounting information helps users make business and financial decisions.

Explanation:

Users of accounting information are divided into :

  1. Internal users
  2. External users

Internal users include : owners, managers, employees

External users include : shareholders, tax authority, regulatory bodies

Based on the information contained in the financial information a shareholder can decide if to invest in a company or not to.

Also, mangers can decide to invest in new ventures based on the information on profitability contained in the financial statements.

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The balance sheet of Flo's Restaurant showed total assets of $320,000, liabilities of $88,000 and stockholders’ equity of $282,0
SashulF [63]

Answer:

The answer is $148,000

Explanation:

Goodwill comes into effect or arises when a company acquires another company. Goodwill is an intangible asset. It is difference between the purchase price of a company and the net asset(total assets minus total liability)

Purchase price is $425,000

Fair value of the asset is $365,000

Total liability is  $88,000.

Net asset =  $365,000 - $88,000

=$277,000

Therefore, goodwill is $425,000 - $277,000

= $148,000

3 0
3 years ago
According to the quantity theory, if constant growth in the money supply is combined with fluctuating velocity, which of the fol
tatuchka [14]

Answer:

A

Explanation:

The quantitative theory of money states that MV=PT.

M: money supply

V: velocity of circulation (number of times that a dollar changes of holder in a period)

P : price of a typical transaction

T: total number of transactions.

We can also write the equation as MV=PY, because the value of transactions is equal to the GDP (Y).

If M has a constant growth but there are fluctuations in V, then P, Y or both change.

5 0
3 years ago
Develop an argument for why a cosmetics manufacturer should build and maintain an ethical climate
Tju [1.3M]

<span>Cosmetic products will easily lose intended efficacy if exposed to unsuitable climate like high temperature or sunlight. To think they are  used for the skin and pricey,  the products should be safe and not harmful. Therefore, they should  meet the standard safety requirements. </span>

7 0
3 years ago
Which of the following best explains the implications of a vertical lras curve?
disa [49]

Answer:

Answer B

Explanation:

The idea behind long-run aggregate supply is that the output economy produces depends on its resources and available technologies. Prices in the long run have time to adjust and they do so at the level equal to the economy's potential output. At this full employment output, economy is facing with natural rate of unemployment.

3 0
3 years ago
EK Chemical Company sells a specialty chemical in packages marked 83 g. In reality, EK has set the process mean at 84.0 g, and t
Lemur [1.5K]

Answer:

0.7207

Explanation:

Mean  μ = 84g

SD σ = 1.85g

Upper specification limit (USL) = 88g

Lower specification limit (LSL) = 78g

Cpk = Min[USL - μ/3σ,  μ-LSL/3σ]

Cpk = Min[88 - 84/3*1.85, 84-78/3*1.85]

Cpk = Min[4/5.55, 6/5.55]

Cpk = Min[0.7207, 1.0811]

Cpk = 0.7207

So, the process capability index for the current manufacturing process is 0.7207

5 0
3 years ago
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