Answer:
Option (A) is correct, adjusted trial balance is prepared before journalizing all transactions is not true.
Explanation:
Adjusting trial balance lists closing balance of all accounts after preparing adjusting entries. It is summary of all accounts to ensure that debit and credit sides of accounts match.
Adjusted trial balance help in preparing financial statements as all adjustments are taken into account. Ledger balances are posted in adjusted trial balance. So, all statements are correct except (A).
Answer:
a. Letter
Explanation:
A letter is written communication from one party to another. Letters are written on a designated paper, put in an envelope and send either by post or hand-delivered.
A letter can be formal or informal. Daniel should write a formal letter to his boss informing him of his resignation. Should Daniel write a letter, It will an official document in the company. The company will be file the document appropriately and will stay intact for many years.
Daniel can also keep a copy of the letter for himself. A letter has an advantage over the other electronic options. Electronic records can be deleted permanently or get lost should the systems collapse.
Answer:
(B) Take any investment opportunity where the net present value (NPV) is not negative; turn down any opportunity when it is negative.
Explanation:
Net present value (NPV) simply differentiates between the present value of cash inflows and the present value of cash outflows.
And the rule is that a company should only invest or be engaged in any business that has a positive net present value and exclude themselves from businesses that have been negative net present value as this can increase the company's income.
