All categories

3 years ago

Which of the following statements are false?

Business

1 answer:

maria [59]3 years ago

3 0

Answer:

a. Revenue provides only outward flows of cash.

b. Revenue is a subdivision of Assets.

d. Expenses are part of Total Assets.

Explanation:

Revenue is the income a business receives from its regular trading activities. It is the money realized from the sale of goods and services to customers. A company may have different sources of revenue such as interests received, sales, or disposal of assets.

Revenue is cash coming to the business or cash inflows. cash outflows is money leaving the company. Expenses are an example of cash outflows.

You might be interested in

he value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of two elements

nekit [7.7K]

Answer:

TRUE

Explanation:

Using the Gordon Growth Model, we can adequately demonstrate that the dividend and price of a share are both components of the cashflow to be considered in share valuation.

Price per share is found to be D(1) / (r - g)

where:

Do = Dividend now

D1 = Dividend in year 1

g = growth

r = required return

So we see that the market price of a share which determines the market capitalization of a company is predicted by a growth in dividends. So the benefits of holding a share will not only depend on how much the share is sold now as against how much it can be sold in the future (in order to make a gain), but also how much you can be earning until such sale occurs.

3 0

3 years ago

You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.

Nady [450]

Answer and Explanation:

The computation of the expected return and the standard deviation is given below:

the expected return is

= $90,000 × 13% + $60,000 × 6.6%

= $15,660.00

And,

standard deviation of return is

= $90,000 × 13% × 44% + $60,000 × 6.6%

= $5,148 + $3,960

= $9,108.00

In this way it should be calculated

8 0

3 years ago

A company received an order from a customer in June for services to be provided. Those services were provided in July, and the c

scZoUnD [109]

Answer:

B. July

Explanation:

The principle of revenue recognition arises whenever the income is realized or earned whether cash is collected or not and it also supports the accounting accrual basis. Realizable here means that the customer obtains the product however the payment is made afterward.

So, in the given case, the service is provided in the July month and the same is to be recorded on the July month

8 0

3 years ago

The selling price of the company’s product is $22 per unit. Management expects to collect 75% of sales in the quarter in which t

tia_tia [17]

Answer:

good luck

Explanation:

I'm only here go support u.....................................................................................

7 0

3 years ago

) Prestwich Company has budgeted production for next year as follows: First Quarter Second Quarter Third Quarter Fourth Quarter

grigory [225]

Answer:

165,000 pounds ($495,000)

Explanation:

To determine the budgeted purchases of material A in pounds for the second quarter, prepare a Materials Purchases Budget as follows :

Materials Purchases Budget

Pounds

Materials Required for Production (80,000 x 2) 160,000

Add Closing Materials Inventory (90,000 x 2 x 25%) 45,000

Total Materials 205,000

Less Opening Materials Inventory (80,000 x 2 x 25%) (40,000)

Material Purchases 165,000

Cost per unit $3

Budgeted Materials Cost $495,000

6 0

3 years ago