Answer:
The statement which is false is D) .
Explanation:
Income statement helps in assessing the current and past performance of the company, it also helps in predicting the future performance and in assessing the risk present in future in obtaining cash flows. Income statement are prepared through two methods either single step format ( which is used by sole proprietor and partnership firms ) or multi step format ( used by corporations ) .
In the single step format , all the income items are group together and are subtracted from the total cost, while in multi step format , a company breaks all the sources from where the revenues and cost have come, it is used to take out various measures like gross profit, operating profit etc.
A common size statement is one of the type of income statement where each account item is represented as a percentage of total sales value.
Option D is false because discounted operations and extraordinary transactions appear on both the single step and multi step format , these transactions are written as written as footnote below the statement.
Explanation:
Note, for private spending, <em>consumption</em> refers to purchases usually made for present needs, while <em>investment</em> refers to purchases that may provide. For government spending, <em>consumption </em>refers to purchase made to care for the immediate welfare or needs of those governed without any monetary benefits, while <em>investment </em>purchases are done with the perceived future benefits in mind.
<u>Private Spending</u>
- Laundromats buying washing machines = Investment
- People buying houses = Investment
- People buying newspapers = Consumption
- People buying food = Consumption
<u>Government Spending</u>
- Payment for public safety employees = Investment
- Building hospitals = Investment
- Building roads = Investments
- Buying military equipment = Investment
Answer:
Too little money
Explanation:
In the given case, David wanted to have all required resources and he also had complete knowledge of it. However he could not get them properly due to his budget constraints which lead to shut down of his business.
This case clearly depicts the problem of too little money as the risk of failure was not mentioned as such. Also the business David was willing to open was not relate to any chemical or defense industry so there was not much regulatory burden.
The problem could most likely be a weak hydraulic brake hose.
A weak hydraulic brake hose could cause a spongy pedal. As the pressure builds in the system, the hose may expand and not relay the pressure to the brake units.
