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3 years ago

Factors that must be considered before starting up the business

Business

1 answer:

larisa [96]3 years ago

3 0

Business idea
Location of your business
Demand
Competition
Finance

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Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a NEGATIVE adjustment of $5000 rel

ozzi

Answer:

It implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

Note: The correct answer is as stated above it is not included in the option. Kindly confirm the options again from your teacher.

Explanation:

Accounts payable refers to the amount of money a firm is owing its suppliers.

Account payable is one of the component of the current liabilities in the balance sheet, and non-cash current liability item that is adjusted for in the cash flow statement to arrive at net cash from operating activities when an indirect method is being used.

Since accounts payable is the amount of money a firm is owing its suppliers, a negative a NEGATIVE adjustment to its implies that company has paid its supplier the negative amount in the accounting period.

Therefore, a NEGATIVE adjustment of $5000 related to Accounts Payable implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

7 0

3 years ago

Hardware is adding a new product line that will require an investment of $ 1 comma 450 comma 000. Managers estimate that this in

ozzi

Answer:

6.83%

Explanation:

The computation of the accounting rate of return is shown below:

As we know that

Average accounting rate of return = Average annual operating income ÷ Initial Investment

where,

Average annual operating income is

Year 1 net cash inflow $320,000

Year 2 net cash inflow $280,000

Years 3-10 ($230,000 × 8) $1,840,000

Total net cash flows $2,440,000

Less: Total depreciation ($1,450,000)

$990,000

Divided it by years of life ÷ 10 years

Average annual operating income $99,000

So,

Average accounting rate of return is

= $99,000 ÷ $1,450,000

= 6.83%

6 0

3 years ago

PLEASE ANSWER SOON!!!!

Gwar [14]

Currency I think. It's given in exchange for an item.

4 0

3 years ago

Read 2 more answers

Max chose to operate his production studio as a sole proprietorship even though his attorney cautioned that he was:____________

sergij07 [2.7K]

Answer:

<u>c. exposing himself to unlimited personal liability.</u>

Explanation:

One major characteristic of sole proprietorship being the individual is sole recipient of profits and sole bearer of all risks and liabilities.

A sole proprietor bears unlimited liability in the sense that, in case of bankruptcy, the proprietor's personal assets can be taken away to repay debts owed by him.

Though a proprietor also remains the sole recipient of all gains, similarly the proprietor is also exposed to unlimited risk.

Thus, the correct option is, c. exposing himself to unlimited personal liability .

8 0

3 years ago

For an FBLA-PBL member who is interested in running for a state or national

DanielleElmas [232]

Answer:A

Explanation: i did the test

6 0

2 years ago