The answer is true as it is a common business for entrepreneurs as a correlation between dollars earned and hours worked.
Answer:
$745,000
Explanation:
The computation of the net account receivable is shown below:
The net account receivable is
= Adjusted balance of account receivable - allowance for doubtful debts
= $800,000 - $55,000
= $745,000
We simply deduct the allowance for doubtful debts from the adjusted balance of account receivable so that the net account receivable could come
Answer
- A) Capital budgeting
- B) Capital Structure
- C) working capital management
Explanation:
- Capital Budgeting: The new product requires investments, therefore businesses are more likely to evaluate the decision of preceding it. So, in brief, it's a method used by companies to assess if a new product should be introduced or not.
<em>Since</em> the company has opted to launch the new product, it has made a capital budgeting decision. In which the company has assessed the risks, benefits and costs associated with the product.
Capital Structure: As the name reflects, businesses have a structure which is a mix of debt + equity to finance the company. Company obliges to identify that where it's investment would come from by assessing its capital after the new product decision is made.
<em>Hence,</em> when company sells it's stock, it is basically creating an investment for its new product.
Working capital management: A process through which companies ensure efficient and effective operations by assessing and managing their working capital. Working capital includes current assets (highly liquid assets) and liabilities.
<em>Therefore,</em> when the company sets its inventory and production levels, it is trying to make its production efficient and effective with sufficient inventory at hand.
Answer: Measurement and presentation of financial performance
Explanation: The two primary functions of financial accounting are measurement and presentation of financial performance.
The measurement function is performed by following accounting procedures and policies under US GAAP and IFRS.
Whereas, presentation function relates to preparation of financial statements like income statement and cash flow statement.
Answer: Housing allowances are part of the compensation package in many places
Explanation:
Compensation is the total cash and the non-cash payments which are given to employee in exchange for work done. Compensation is not an employee's regular paid wages but rather, it includes other forms of wages and benefits.
While different companies use different compensation packages, the common compensation plans are housing allowance, vacations, spousal employment help, help paying taxes etc.
The most accurate compensation plan given above is that housing allowances are part of the compensation package in many places.
