In case of accrued payroll for the month but did not pay the cash flow from activities will remain the same.
Considering, that the charge has now not been made, it has not led to any outflow of cash. It is going to be treated as a cash outflow in the month in which the payment is definitely made.
There are three cash flow sorts that organizations should track and examine to decide the liquidity and solvency of the enterprise: coins float from working activities, coins drift from investing in sports and coins flow from financing sports. All 3 are blanketed on a business enterprise's cash flow statement.
Cash from operating activities suggests the amount of money a company brings in from its ongoing, normal commercial enterprise activities, together with production and selling goods or imparting a carrier to customers.
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POPS' owners and managers use the company's income statement to ultimately determine the company's <u>double </u><u>bottom line</u>.
More about income statement:
One of the three financial statements on which stock investors rely is the income statement. (The balance sheet and cash flow statement round out the list.) Investors who wish to evaluate a company's profitability and potential growth must comprehend an income statement.
Morea about double bottom line:
By adding a second bottom line to gauge a for-profit company's success in terms of its positive social impact, the double bottom line (also known as 2BL or DBL) tries to expand the traditional bottom line, which assesses fiscal performance and accounts for financial profit or loss.
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The formation of a limited liability company is accomplished by filing the limited liability company (with a state official.
A limited liability company is a corporate structure that protects its owners from being personally sued for repayment of the company's debts or liabilities (LLC).
How we form an LLC?
- Although the rules for LLCs differ per state, there are some broad similarities. The first step for owners or members is to pick a name.
- Articles of incorporation are filed, together with a fee paid to the state. After that, the articles of incorporation can be recorded and filed with the state.
- These articles define each LLC member's rights, responsibilities, powers, liabilities, and other obligations.
- The paperwork also include the names and addresses of the LLC's members, the name of the registered agent, and the company statement of purpose.
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Answer: c. credit to Accumulated Depreciation.
Explanation:
When using the accelerated method of depreciation, depreciation amounts are higher in the earlier years unlike the straight-line method where depreciation is constant throughout the life of the asset.
The difference between the depreciation according to Straight-line and depreciation will be sent to the accumulated depreciation account as a credit to reflect the change and the depreciation for the period.
