Answer:
The correct answer is D. $1,320,000
.
Explanation:
In this case, it should be considered that the Stone Company is just beginning to operate, so the capital at the end of the period is made up of the following:
Initial Capital: $ 1,200,000
Dividends: $ 120,000
TOTAL = $ 1,320,000
Net income is not part of the measurement of capital, since information on expenses must be available to calculate the profit or loss for the period. For its part, investments in shares are considered a current asset and do not enter into this calculation.
Answer:
The answer is A. corporate social responsibility
Explanation:
Corporate Social Responsibility is a commitment by a business to behave ethically and contribute to economic development while improving the quality of life of its workforce and society as a whole.
Answer: The relationship between A and B project cannot be determined with the information given.
Explanation: The relationship between PW(A) and PW(B) is the correlation between project A and Project B in a portfolio.
This is not possible to be calculated with the information given.
But an expression of calculating this is;
PW is the present value of A and B projects.
MARR is the minimum acceptable rate of return
The calculate the correlation of the two project, divide MARR by the multiple of the two project.
That is;
Correlation = MARR ÷ [PW(A) × PW(B)]
Therefore;
Correlation = i11% ÷ [PW(A) × PW(B)]
This shows that the relationship cannot be determined with the limited Information supplied.
From an accounting standpoint, stockholders' investment and revenues increase the assets of the company without adding to the liabilities. Therefore according to the equation (A = L + E), equity must increase.
Similarly, issuing dividends and paying expenses pays cash out of the company, which decreases assets without changing liabilities. Therefore equity must decrease.
Another way to think of it is: what contributes to the company's profit and/or value, and what decreases these things? Well, revenues and people investing in the company are good (and therefore good for stockholders), and giving cash out and paying expenses are costs to the company (and therefore decrease value for stockholders).
