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3 years ago

Describe the difference between debt capital and equity capital.

Business

1 answer:

shusha [124]3 years ago

6 0

Answer:

Explanation:

Companies borrow debt capital in the form of short- and long-term loans and repay them with interest. Equity capital, which does not require repayment, is raised by issuing common and preferred stock, and through retained earnings. Most business owners prefer debt capital because it doesn't dilute ownership

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If management identifies even one material weakness in internal control, then management will conclude that the organization’s i

solong [7]

Answer:

Statement is true

Explanation:

Internal control over financial reporting was designed to give assurance related to financial statements preparation and authenticity of financial reporting.

Material weakness refers to inefficiency in internal control which could lead to misstatement in financial statement thereby making financial reporting unreliable. As such, even one material weakness would prove ineffective internal control over financial reporting.

8 0

4 years ago

In comparing the relationship between the promotional mix and the aida model, marketers have generally concluded that advertisin

Alina [70]

In comparing the relationship between the promotional mix and the Aida model, marketers have generally concluded that advertising they are most useful for drawing attention to your products and services.

In the advertising mix and the AIDA model, the main relationship of advertising is to get the customer's attention, and AIDA also stands for Attention, Interest, Desire, and Behavior, which is intended to be used in marketing and advertising. I mean The AIDA model represents the four phases that a consumer goes through before making a purchase decision.

The AIDA model, which stands for Attention, Interest, Desire, and Behavior Model, is an advertising effectiveness model that identifies the stages people go through in the process of purchasing a product or service.

Learn more about the Aida model at

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6 0

2 years ago

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as

Serga [27]

Answer:

d. Cash 27,000

Floyd, Capital 5,250

Merriam, Capital 1,750

Ramelow, Capital 20,000

Explanation:

First of all we need to calculate the total capital after admission

Total Capital after admission = $50,000 + $23,000 + $27,000 = $100,000

Share of Ramelow = Total Capital x Partnership share = $100,000 x 1/5 = $20,000

Actual Payment made by Ramelow = $27,000

Amount of goodwill paid by Ramelow = $27,000 - $20,000 = $7,000

This goodwill will be distributed between Floyd and Merriam as per their partnership ratio

Share of Goodwill ro Flyod = $7,000 x 3/4 = $5,250

Share of Goodwill ro Merriam = $7,000 x 1/4 = $1,750

3 0

3 years ago

Jessep Corporation has a standard cost system in which manufacturingoverhead is applied to units of product on the basis of dire

Orlov [11]

Answer:

Standard fixed overhead rate

= Budgeted fixed overhead cost

Budgeted direct labour hours

= $45,000

15,000 hours

= $3 per direct labour hour

Fixed overhead volume variance

= (Standard hours - Budgeted hours) x Standard fixed overhead rate

= (12,000 hours - 15,000 hours) x $3

= $9,000(U)

The correct answer is B

Explanation:

In this case, we need to calculate standard fixed overhead rate, which is budgeted fixed overhead cost divided by budgeted direct labour hours. Then, we will calculate fixed overhead volume variance, which is the difference between standard hours and budgeted hours multiplied by standard fixed overhead rate.

8 0

3 years ago

Which type of lender is most likely to charge the highest interest rate?

jenyasd209 [6]

Answer:

Explanation:

Unlike the other options, <u>payday lenders</u> are not official lenders operating under federal laws. This enables them to charge high interest rates as they wish.

4 0

2 years ago