What is a transactions balance? the cash a firm holds to counter the uncertainty surrounding its future cash needs the cash a firm holds in order to pay its bills the cash a firm holds to gain tax advantages the cash a firm places into short-term investments
Q: On January 1 of the current year, a company paid $200,000 cash to purchase 10%, 10-year bonds, with…
A: Journal entry shows the recording of transactions during an accounting year and every transaction…
Q: The following accounts are taken from a balance sheet. 1. Cash 2. Retained earnings 3. Equipment
A: Introduction: Balance sheet: All Assets and liabilities are to be shown in Balance sheet. It tells…
Q: Which of the following financial statements shows how net income (loss) and dividends impacted a…
A: Out of the profit earned by the business organization, some of the profit is distributed by them to…
Q: The manager at Rainbow International prepares a Cost of Quality report to report the following…
A: Every business wants to improve its process with effectiveness and efficiency. This is due to…
Q: On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at par.…
A: Introduction: Interest amount: Interest is a charge levied on the principal amount. Interest is…
Q: Super Ma'am, 61 years old, took an airplane going to Dipolog and the fare (inclusive of taxes and…
A: In the Philippines, an individual who is above the age of 60 years is known as a senior citizen. The…
Q: The following production estimates were made for the coming year: Total quilts to be produced Total…
A: Manufacturing overheads represent the total indirect expenses incurred during the production of…
Q: A project your firm is considering for implementation has these estimated costs and revenues: an…
A: Investment cost $50,000 So, the cost at year 0 will be $50,000 Maintenance cost that starts at…
Q: On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a…
A: Under construction costing the revenue can be recognized either on the percentage of completion…
Q: 21, Nkana Plc issued 80 million K1 preferred shares at a premium of K0.5 each. Issue Costs totalled…
A: Preferred Shares: These are the shares on which there is a preferential right of dividend and…
Q: An entity has 100 employees, who are each entitled to five (5) working days of paid sick leave for…
A: This question deals with the IAS 16 "Employees benefits" Employees also get benefits other than the…
Q: Jackie qualified as Head of Household for 2020 tax purposes. Jackie's 2020 taxable income was…
A: The capital loss and capital gains are adjusted against each other over the period of time.…
Q: Use the following financial information to find the entry you would make on an income statement for…
A: Income statement is prepared by the business organization so as to know how much amount of gross…
Q: The following balances are shown in the shareholders' equity of tamarind company on December 31,…
A: Introduction: Shareholders' equity is owners' equity who has claim over the net assets of the…
Q: and
A: The purchase of inventory is a foreign currency transaction because ABC co. incurred transaction in…
Q: Suppose a company has fixed costs of $47,600 and variable cost per unit of +222 dollars, where x is…
A: As per our guidelines, when the question contains multiple sub-parts we are allowed to answer only…
Q: Corporation was authorized to issue 60,000, P100 par ordinary share capital on November 3, 2021. The…
A: Authorized share capital—also known as "authorized stock," "authorized shares," or "authorized…
Q: .Statement 1: Non-resident individual taxpayer are also subject to 15% final tax on their income…
A: The capital gains tax is related to appreciation in the value of capital assets or gains realized on…
Q: In the first part, how did you get the new price* new shared issued as 1000000? I am very confused.
A: Outstanding shares: This includes the total number of company's shares that are actually held by…
Q: Jones Supply Services paid $350 cash, the amount owed from the previous month, to a materials…
A: Lets understand the basics. When any supplies sales on credit with a term to receive payment after…
Q: Cayuga Hardwoods produces handcrafted jewelry boxes. A standard-size box requires 14 board feet of…
A: The cost of raw materials used for making a product is referred to as direct material cost. The…
Q: A table for a monthly bank reconciliation dated September 30 is given below. For each item 1 through…
A: Bank Reconciliation: A bank reconciliation is a process of matching the entity's cash account…
Q: Assimilator Corp. is in the business of leasing equipment. Assimilator purchased new equipment on…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: What total amount should be capitalized as cost of the machine?
A: Original price is the whole charge related to the acquisition of an asset. The authentic price of an…
Q: Which of he following stalements is CORRECT about benefits provided by a Basic Hospital and Surgical…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: A company began operations on January 1, 2020. Purchases of property, plant and equipment during…
A: The depreciation expense is the decrease in the value of fixed assets as a result of wear and tear,…
Q: Vacation Corporation produces a single product. Data concerning the company's first year of…
A: The difference in variable cost and absorption is that of treatment of fixed manufacturing overhead.…
Q: The following accounts were taken from the Adjusted Trial Balance columns of the work sheet:…
A: Introduction: Net income refers to the amount an individual or business makes after deducting costs,…
Q: A firm had two departments, cloth and ready-made clothes. The clothes were made by the firm itself…
A: where there are many departments and independent activities are performed by them so it is…
Q: Bopha Ltd, a general construction company which is based in Limpopo, has a financial year end of 31…
A: All the expense which incurred to bring an asset to put to use will be capitalise as a part of that…
Q: Buster Industries pays weekly salaries of $30,900 on Friday for a five-day week ending on that day.…
A: Adjusting entries are prepared by management to ensure the accrual basis accounting system. It is…
Q: On January 2, 2018, McKnight Furniture purchased display shelving for $8,000 cash, expecting the…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Calculate the amount of working capital (in $) and the current ratio for the given company. Round…
A: Current assets are those assets which are held by the business for shorter period of time, say one…
Q: Item A corporation's liability (Notes Payable) in the amount of P 100,000 was paid by issuing its…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Samer Corp. uses a job order cost accounting system. The following is selected information…
A:
Q: Use the same information given in problem 1. Present the shareholders' equity section of the…
A: Memorandum Method: Authorized share capital = 300,000 * P20 = P6,000,000 (a) Cash…
Q: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…
A: Fixed cost will change and total cost will remain the same.
Q: n August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which…
A: Impairment Loss- An impairment loss is defined as a decline in an asset's carrying value caused by a…
Q: Module 4 Activity Sheet: Savings Calculator Name: Directions: Use the savings calculator from Nerd…
A: In the context of the given question, we are required to solve the problems. Workings: 1)…
Q: XYZ Co. is a sole proprietorship owned by X. It was organized on January 1, 2018 with X's investment…
A: As per the double-entry bookkeeping system, the total of the owners' equity and liabilities equals…
Q: 16 The Accounts Payable account: Multiple Choice has a normal credit balance. is…
A: Current liability is the liability which is due to be paid within the period of 12 months.
Q: tional Bank grante the amount of P1,500,0 Payments are due mon National Bank incurre cost and…
A: Explanation of Concept This is the concept of recognition of loan liability in the books of loan…
Q: Show Depreciation entry for 2018 year On January 2, 2018, McKnight Furniture purchased display…
A: Depreciation- Depreciation is recorded as an expense in accounting because the value of an asset…
Q: what is the present worth
A: Working note 1 : Computation of present value of Investment cost and Maintance expenditure. Year…
Q: Calculate the missing information based on the format of the income statement. Net Sales Cost of…
A: Formula: Gross margin = Net sales - Cost of goods sold Net profit = Gross margin - Operating…
Q: 1 Transferred cash from a personal bank account in exchange for stock, $50,000 2 Purchased $8,000 of…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: Balance Sheet as at As at 30/9/16 As at 30/9/15 $ $ Assets Current…
A:
Q: artners Able, Baker, and Chapman have the following personal assets, personal liabilities, and…
A: Given: - Able's Personal assets = $30,000 Able's personal liabilities = $25,000 Able's capital…
Q: A firm purchased a Machine on 1 January 2010. The Machine has a 5 year life and no residual value.…
A: Fixed assets are those assets which are being held by the business for longer period of time. For…
Q: City of Smithville Street Improvement Bond Debt Service Fund Pre-closing Trial Balance For year 2020…
A: Retirement of bonds means the payment to the bondholders The bond is a kind of debt or loan taken by…
Question 11
What is a transactions balance?
|
the cash a firm holds to counter the uncertainty surrounding its future cash needs |
||
|
the cash a firm holds in order to pay its bills |
||
|
the cash a firm holds to gain tax advantages |
||
|
the cash a firm places into short-term investments |
Step by step
Solved in 2 steps
- Questions and Exercises 12.2 - The Free Cash Flows Valuation Approach. Explain the theory behind the free cash flow valuation approach. Why are the free cash flows value relevant to common equity shareholders when they are not cash flows to those shareholders, but rather are cash flows into the firm? Please keep your original post to under 100 words.QUESTION 14 Relative to cash flows affecting net working capital, all of the following are true EXCEPT ... cash outlays for current liabilities are relatively predictable. cash inflows are generally more predictable than cash outlays. the more predictable the cash inflows, the less net-working capital a firm needs. since most firms cannot match cash inflows and outflows with certainty, current assets that more than cover outflows of current liabilities are necessary.Which of the following statement is INCORRECT? Question 20 options: 1) The finance manager manages the short-term balance sheet items of the company, such as current assets and current liabilities. 2) The finance manager uses investment evaluation techniques to decide whether to purchase fixed assets. 3) The finance manager seeks to maximise the firm’s wealth when deciding on the choice of capital sources such as debts and equity. 4) The right-hand side of the balance sheet refers to the company’s investment decisions to buy fixed assets to generate returns.
- Ch. 14. Which one of the following is NOT an implication of market efficiency for corporate finance? Group of answer choices Managers can reap many benefits by paying attention to market prices Firms cannot successfully time issues of debt and equity Managers cannot profitably speculate in foreign currencies and other instruments Firms can successfully time issues of debt and equity Managers cannot fool the market through creative accountingQ1)B. Determine whether the sentences are True Or False: 1) Stabilizing the economy is the primary function of Commercial banks ( -------------- ) 2) The Credit creation activity can raise aggregate demand which leads to more production in the economy( -------------- ) 3) Risk aversion is the difference between the return on a risky asset and less risky asset, which serves as compensation for investors to hold riskier securities ( -------------- ) 4) The transfer of risk occurs in the capital markets ( -------------- ) 5) The tighter the probability distributions of expected future returns, the higher the risk of a given investment(-------------- ).QUESTION 7 First National Bank has assets that are more rate-sensitive than its liabilities. As interest rates rise, then we should expect the bank profits to: A. Remain unchanged B. Fall C. Rise
- Q1) a.What do the investors in a firm expect if a firm retains earning rather than distributing earnings in the form of dividends?b. What do we mean by financial governance? Explain the types of financial governance? c.What are the types of financial deals?CH6 # 1 The ABC Company has a stable dividend policy ($2 per share per year). It also has a policy of not raising new capital from the market. The policy is to invest the available funds after payment of the dividends (excess cash is invested in marketable securities). What does this imply about the use of the present value method of making investment decisions?3.8 Classification of Cash Flows Related to Share-Based Compensation. One reason companies use stock options to compensate employees is to conserve cash. Under current tax law, companies get to deduct compensation when the employees actually exercise options. Explain how the cash flow savings from stock option exercises affect the statement of cash flows.
- 31. A primary financial market is one that: A. offers financial assets with the highest expected return B. offers the greatest number of financial assets C. offers financial assets with the highest historical return D. involves the sale of financial assets for the first time 32. Purchasing shares on the Saudi Stock Exchange is an example of: A. a primary market transaction B. companies raising finance from another financial intermediary C. a secondary market transaction D. companies raising new finance11. What services does an investment bank perform in the primary market and how is the income derived for each service?27.Which of the following statements are true?Statement I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity. Statement II. Financial institutions manage their liquidity by participating in money markets. They may issue money market securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.Statement III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.Statement IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The…