Answer:
To reduce the chance of fraud.
Explanation:
An appropriate practice to reduce transaction fraud would be "traceability," which is the ability to track and follow the supply chain of some manipulation. This greatly helps prevent fraud and loss of information.
Financial frauds are actions that a person performs in order to obtain a profit of their own at the cost of damage the economy of another.
Answer:
The description is for Colombia.
Explanation:
In Colombia and any Latin American country, the business creation process is usually more complicated due to the different types of legal procedures that must be carried out, which often ends up increasing informality levels. In the United States, the process is usually easier, since it takes no more than three days and can be done electronically. In Colombia, for example, a different procedure must be carried out for each national or territorial body (local and national taxes), commercial constitution, among other procedures that take approximately one month to complete. In addition, many of these obligations require the advice of a certified accountant who is the most suitable professional to carry out this procedure.
Answer:
Answer is B
Explanation:
Cash flow = Net Income + Adjustment for Non-Cash expenses
So we must first calculate the Net Income for the second year using the Profit and Loss Statement format:
Year 2
Revenue $400,000
Less Expenses ($220,500)
Less Depreciation ($ 20,000)
Profit before Tax $159,500
Less Tax ($54,230) {34% of Profit before Tax}
Net Income $105,270
Add Depreciation $20,000
Cashflow $125, 270
{Remember Depreciation is a non cash expense, so we must add it to the Net income to arrive at the cash flow}
(Remember the company expects no change in revenue)
Answer:
The cash paid on May 8 is: $5,880
Explanation:
Credit terms of 2/10, net 30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
The company purchased $6,500 of merchandise on May 1. On May 6, it returned $500 of that merchandise.
The balance owed for merchandise = $6,500 - $500 = $6,000
On May 8, it paid the balance owed for merchandise, taking any discount it is entitled to.
The company took the appropriate discount:
2% x $6,000 = $120
The cash paid = $6,000 - $120 = $5,880
Answer:
A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due.
Explanation:
Solvency is defined as the long-term ability of a business the generate enough cash flow that will allow it to continue its operations and also to pay of its debt when due.
It is used as a measure of the financial health of the business.
A business with good solvency has a high probability of remaining in operation for the foreseeable future.
