Answer:
A) Yes, because the firm could sell the warehouse if it didn’t use it for the new project.
Explanation:
- The option A is correct in our scenario, because the firm still have the option to sale the warehouse even they want to use it for the new project.
- The option B is not correct as the cost of warehouse is not sunk cost, such a cost that has been utilized and can't be recovered, but we can sale the warehouse and get the payment.
- The option C is incorrect as once the project is complete then it would be a part of that project so they will not sale the warehouse.
Answer and Explanation:
The categorization is shown below:
1 Purchase of a patent = Investing activities as it represents in a negative sign because it is a cash outflow
2 Depreciation expense Operating activities as it is added to the net income
3 Decrease in accounts receivable = Operating activities as it is added to the change in adjustments column
4 Issuance of a note payable = Financing activities as it represents in a a positive sign because it is a cash inflow
5 Increase in inventory = Operating activities as it is deducted from the change in adjustments column
6 Collection of note receivable = Investing activities as it represents in a positive sign because it is a cash inflow
7 Purchase of equipment = Investing activities as it represents in a negative sign because it is a cash outflow
8 Exchange of long term assets = Separate non cash activities note as it does not involved any cash transactions
9 Decrease in accounts payable = Operating activities as it is deducted from the change in adjustments column
10 Payments of dividend = Financing activities as it represents in a negative sign because it is a cash outflow
Answer:
C. Statute of limitations.
Explanation:
Statute of limitations are laws which states the time limit of when legal proceedings must be initiated between concerned parties from the date in which alleged offence was perpetrated.
In statue of limitations, the time limit for somebody is wronged to initiate legal action is not fixed in all jurisdiction. It means that depending on the nature of the alleged offense under statute of limitation, time allowed to institute legal actions varies.
Example of statue of limitation is that for certain states, the time limit to initiate legal case say on fraud is two years. It means that one must bring up the case in a court of law within the stipulated two years period. Once the two year grace elapse, one can no longer sue for fraud in the court of law.
Although there is no time limit for certain offence like murder case, sex offence with minor etc.
As in the case above, the judge threw away the case because according to the law of statute of limitation, a party that is wronged can only sue the wrong doer within the stipulated time as spelt out within the jurisdiction where the alleged offence was committed.
Answer:
are qualified in there industry
Explanation:
that's what my quiz said was right
Answer:
$0
Explanation:
The net income is the difference between the sales and total cost which comprises of the variable cost and fixed cost. The sales and variable cost are dependent on the number of units sold.
Let
u = number of units
s = selling price per unit
v = variable cost per unit
F = Fixed cost
I = Net income
I = su - F - vu
but vu = 0.3su
Hence
I = su - 0.3su - F = 0.7su - F
Given that the proposal will increase sales by $12,000,
New sales = su + 12000 ( in $)
and total fixed costs by $8,400
New fixed cost = F + 8400
New variable cost = 0.3( su + 12000) = 0.3su + 3600
New net income = su + 12000 - 0.3su - 3600 - F - 8400
= 0.7su - F
New net income is same as the old net income hence no increase.
