Answer:
a) Financial Statements
b) Limited Liability
Explanation:
a) The reporting of financial conditions at the corporation so that it can be evaluated, is the aim of preparing <em>financial statements. </em>Financial statements<em> </em>are periodic reports prepared monthly or annually to show the financial health of a company. They are made up of the statement of profit or loss, statement of financial position, cash flow statements and statement of changes in equity.
b) Legal protections for shareholders so that they are not taken advantage of is the purpose of limiting the liability of shareholders. Limited liability relates to a shareholder's financial liability being limited to a fixed amount not exceeding his investment in the company or partnership. Nevertheless every shareholders is liable for his own actions personally.
Answer:
800,000/600,000=1.33
Profit percentage = 1.33-1=0.33=33%
0.02*800,000=16,000 worth of goods returned
Profit= 0.33*16,000=5280
COGS= 16,000-5280=10,720
Adjusting Entry
Debit Credit
Goods returned 10,720
Profit 5,280
Cash 16,000
Explanation:
Answer:
C) breaks even.
Explanation:
Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Hence, if revenues are greater than total variable costs of production but less than total costs, a firm breaks even because the amount of money being generated is greater than the cost of running the business.
Answer:
e. Vertical marketing system.
Answer:
inward shift in the supply curve.
Explanation:
= I = S + (T-G). shift in the supply curve.
