An income statement shows the

The starting point in preparing a master budget is the preparation of the select one:

Nat2105 [25]

B) Sales Budget is the answer.

5 0

3 years ago

Axiom International, an Australian company, wants to expand its operations to China, a country that is politically, culturally,

lara [203]

Answer:

B. Joint venture

On a Joint venture, Axiom will have partner which share the risk and cost of the project.

Also this partners can be local companies with knowledge ofthe Chinese market.

Axiom will have limited liability until his contribution.

It will generate new jobs in the country and include local business persons, this will be politically acceptable

This option has everything Axiom is looking for.

Explanation:

A.- if Axiom uses a subsidiary it will not have access to local knowledge. Also it will be the same entity, so it won't be sharing the cost.

It won't be what the company need

C.- if exporting it will not be expanding inside the country. Also it will not provide local knowledge or share the cost with a third party. The goverment may create additional tariff or market cuota or any other barrier to protect national companies.

It won't be what the company need

E.- Licensing: will be selling the brand name or product to a third party. It will not be part of the revenue stream entirely. A third party with knowledge of the market will exploit the benefit.

D. Greenfield investments: The company will establishes operations on the country. It will have a high cost, but will get the goverment approval for the jobs created in China. However it will be Axiom who takes the cost and risk for the entire investment.

These two are partially suitable, but with some backwards

5 0

3 years ago

Peace of mind provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after th

Svet_ta [14]

Answer:

a. Cash basis - Service revenue is $900

b. Accrual basis - Service revenue is $2,100 (which is $1200 + $900)

Explanation:

In accounting, there are 2 basis for recognizing transactions; these are cash basis and accrual basis.

In cash basis, sales and expenses are not recorded unless cash has been collected and paid respectively. In the accrual basis of accounting, expenses and sales are recorded when incurred and earned respectively.

Revenue earned under the accrual basis would therefore include the revenue for which cash has been collected and those for which cash is yet to be collected.

4 0

3 years ago

Help-. You and a friend are designing and selling artisan smartphone covers. The covers are decorated with tiny manufactured rhi

GuDViN [60]

I believe it would be capital. You have to invest in the jewels to complete the cases.

8 0

3 years ago

Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received

muminat

Answer:

a. What is the after-tax cost if she pays the $39,000 bill in December?

= $23,000 x (1 - 32%) = $15,640

b. What is the after-tax cost if she pays the $39,000 bill in January? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

total after tax cost (including investment revenue):

= $23,000 x (1 - 37%) = $14,490

= -$23,000 x 7% x 1/12 x (1 - 37%) = -$84.53

= $14,405.47

c. Should Reese pay the $23,000 bill'in December or January?

January , since the after tax cost is lower

d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $23,000 bill in January?

= $23,000 x (1 - 24%) = $17,480

= -$23,000 x 7% x 1/12 x (1 - 24%) = -$101.97

= $17,378.03

e. Should Reese pay the $23,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year?

December, since the after tax cost is lower

3 0

3 years ago