Answer:
b. $3,000 needed
Explanation:
Given that
Beginning cash balance = $10,000
Cash receipts = $40,000
Cash Payment = $48,000
Desired ending cash = $5,000
The computation of amount that need to borrow:-
Cash balance = Beginning cash balance + Cash receipts - Cash Payment
= $10,000 + $40,000 - $48,000
= $50,000 - 48,000
= $2,000
Cash borrowed = Desired ending cash - Cash balance
= $5,000 - $2,000
= $3,000
Answer:
b. As inherent risk goes up, audit risk goes down.
Explanation:
Inherent risk is the risk which is present before applying any control, and audit risk is the that the auditor expresses inappropiate audit opinion when the financial statements are materialy misstated.
Thus, when the inherent risk is <em>high</em>, the auditor keeps the audit risk at <em>low </em>level to perform more subtantative procedures.
Answer:
I think its A, C and E
To withdraw money from an account, the depositor can use a check.
Each bank deposit is supported by a deposit ticket.
A bank account is a record set up by a bank for a customer.
Explanation:
Answer: A. A monopolist sells a good that has no close substitutes
E. Rent seeking by monopolies imposes additional costs on society above the deadweight loss.
H. A monopolist that sets a single profit-maximizing price will not set price along the inelastic portion of the demand curve.
Explanation:
A monopoly is a market with a single seller for a certain product such that the sector is dominated by a company. A monopolist typically sells a good which has no close substitutes.
From the options given, the ones that are true regarding monopolist include:
• A monopolist sells a good that has no close substitutes.
• Rent seeking by monopolies imposes additional costs on society above the deadweight loss.
• A monopolist that sets a single profit-maximizing price will not set price along the inelastic portion of the demand curve.
Therefore, the correct options are A, E, H
Answer:
PREVIOUS SALES = $300000
PREVIOUS ASSET ($300000 * 70%) = $210000
LESS PREVIOUS LIBALITY ($300000 * 30%) = ($90000)
PREVIOUS CAPITAL FUND = $120000
NEXT YEAR SALES = $500000
NEXT YEAR ASSETS ($500000 * 70%) = $350000
LESS NEXT YEAR LIBALITY ($500000 * 30%) = ($150000)
NEXT YEAR CAPITAL FUND = $200000
LESS PREVIOUS YEAR CAPITAL FUND = ($120000)
LESS RETAINED EARNING NEXT YEAR = ($30000)
NEW FUND REQUIRED = $50000
The level of required new funds is $50000