Two accounting equalities to maintain in transaction analysis are Assets and Liabilities + Equity.
One key element of performing accounting transaction analysis is ensuring that the accounting equation is balanced. This means that for every debit account entry, you must have a credit account entry of the same amount.
This accounting equation works as-
Assets = Liabilities + Equity
Assets- This refers to the resources of a company and includes cash and cash equivalents, accounts receivable, and inventory.
Liabilities and equity- The liabilities of a company refer to its financial obligations, such as loans, long-term debts, mortgages, and notes payable.The shareholder’s equity of a company refers to the dollar value of the company and can be calculated by subtracting its liabilities from its assets. Both liabilities and equity show how the company has financed its assets.
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Answer: $400,000
Explanation: Given the following :
Operating Income (EBIT) = $4,000,000
Weighted average cost of Capital (WACC) = 10% = 0.1
Operating capital = $20,000,000
Taxes = 40% = 0.4
Economic Value Added (EVA) is given by;
EBIT x (1-Tax) - (WACC x Operating capital)
$4,000,000 × (1-0.4) - (0.1 × 20,000,000)
$4,000,000 × (0.6) - (2,000,000)
$2400,000 - $2,000,000
=$400,000
Explanation:
In this case, the ideal is to reject a task that is not mandatory in your contract. The boss's attitude in this situation was somewhat sexist, as it reduced the professional skills of a female investment analyst to having to be liked and serving coffee to bankers, since the professional was there to make a great professional presentation.
These unprofessional attitudes can be combated with an assertive attitude, without the professional feeling cornered by the possibility of suffering reprisals, but it is by maintaining an ethical, professional attitude and imposing respect, that it is possible for such unethical acts to be combated and not accepted any more. formal work environment.
The main purpose of cost accounting is to find out the cost of the various processes in the business so that selling prices can be fixed appropriately.
<h3>What is cost accounting?</h3>
This is an accounting method that allows companies to find out the cost of various processes and transactions they embark on.
Knowing these costs will enable the company to know the price it can charge on goods so that it can recoup these costs and make profits.
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