Answer & Explanation:
Most balance sheets are arranged according to this equation:
Assets = Liabilities + Shareholders’ Equity
The equation above includes three broad buckets, or categories, of value which must be accounted for:
1. Assets
An asset is anything a company owns which holds some amount of quantifiable value, meaning that it could be liquidated and turned to cash. They are the goods and resources owned by the company.
Assets can be further broken down into current assets and noncurrent assets.
- Current assets are typically what a company expects to convert into cash within a year’s time, such as cash and cash equivalents, prepaid expenses, inventory, marketable securities, and accounts receivable.
- Noncurrent assets are long-term investments that a company does not expect to convert into cash in the short term, such as land, equipment, patents, trademarks, and intellectual property.
2. Liabilities
A liability is anything a company or organization owes to a debtor. This may refer to payroll expenses, rent and utility payments, debt payments, money owed to suppliers, taxes, or bonds payable.
As with assets, liabilities can be classified as either current liabilities or noncurrent liabilities.
- Current liabilities are typically those due within one year, which may include accounts payable and other accrued expenses.
- Noncurrent liabilities are typically those that a company doesn’t expect to repay within one year. They are usually long-term obligations, such as leases, bonds payable, or loans.
3. Shareholders’ Equity
Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they be private or public owners.
Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation:
Shareholders’ Equity = Assets - Liabilities
— Courtesy of Harvard Business School
I hope this helped! :)
Answer:
A decrease from net income in the operating cash flow.
Explanation:
If the inventory increases from the last year to the current year, there will be a cash outflow.
Since inventory is a current asset, it will be reported under the operating cash flow of the cash flow statement. According to the cash flow statement, if a current asset increases, it will be deducted from the net income. Therefore, under the cash flow from operating activities, and Inventory amount $3,000 = ($10,000 - 7,000) will be deducted from net income.
Answer:
<u>c. cost leadership; differentiation</u>
Explanation:
<em>Remember,</em> we are told that the owner wants to make her runners affordable to the public, and we agree that affordability is only possible when there is cost leadership.<u> </u><u>Cost leadership strategy simply implies that the company's products/services are positioned to be the cheapest in comparison with other competitors.</u>
To specifically focus on quality and uniqueness, the sharks were asking the owner to pursue the differentiation strategy. <u>Differentiation strategy requires having features that set your product or service apart from others such as quality and uniqueness.</u>
Rent, expenses made by office, telephone expenses, administrative salaries are the items that fall under indirect cost.
Explanation:
Indirect costs are those cost which are not accountable directly. Indirect cost can be either variable or fixed. Indirect cost are also known as overhead expenses.
Rent can act as both direct as well as indirect cost. If rent is given for the plant as well as machinery for a company which is use by manufacturing units directly fall under direct cost but in other way when the rent is given for various official purposes it will fall under indirect cost.
