Answer:
Matching concept
Explanation:
This accounting principle is of the opinion that the expenses incurred in generating revenue should be matched with the revenue or income in order to ascertain whether or not profit or loss has been made,in other words,reporting only the revenue without considering the fact some amount has been incurred in a bid to generate the revenue does not a clear picture of the business underlying transactions.
It is simply aggregating like with like since costs incurred in the period are deducted from revenue in the same period.
If a company pays one year of rent in advance on january 1. on january 31, the company will record an adjusting entry that will: Decrease assets and increase expenses.
<h3>Adjusting journal entry </h3>
Assuming company pays one year of rent in advance on january 1 which means that on january 31, the company will record an adjusting entry that will Decrease assets and increase expenses.
The adjusting journal entry for a prepaid expense will tend to decreases assets (Prepaid Rent) and as well increases expenses (Rent Expense).
Therefore on january 31, the company will record an adjusting entry that will: Decrease assets and increase expenses.
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Answer:
16.30%
Explanation:
Calculation for what the percentage of the company's capital structure consists of debt
Using this formula
rs=D1/P0+g
First step is to find the D1 using this formula
D1=(1+Dividend expected grow constant rate) *+Dividend per share
Let plug in the formula
D1=(1+0.07)*$2.00
D1=1.07*$2.00
D1=$2.14
Now let find the percentage of the company's capital structure Using this formula
rs=D1/P0+g
Let plug in the formula
rs=$2.14/$23.00+0.07
rs=0.09304947+0.07
rs=0.1630*100
rs=16.30%
Therefore the percentage of the company's capital structure consists of debt will be 16.30%
Explanation:
We can cite as the two strategic issues of change that most organizations currently face, such as
1- Employee motivation.
2- Use of resources.
Currently, in the macroeconomic context, companies face important challenges in carrying out their activities. Some of these challenges are related to technological changes that are occurring more and more rapidly in the world, which means that the company's communication and integration with society is developed in a much closer and more responsible way.
The external factors that can influence the potential of companies in the short and long term, can be social problems, political challenges, social and environmental costs, legal issues, etc.
As society currently sees companies as agents responsible for promoting improvements for localities, companies now have greater responsibilities in carrying out programs and procedures that attest their corporate governance to stakeholders, seeking to comply with the best social and environmental practices, which can often be a strategic challenge, in the form of motivating employees and employing resources that are in compliance with what is required by ethical and legal issues.