Which of the following will cause owner's capital to decrease? Select one: a. Capital b. Profit c. Drawings d. Liability

Q: a. Sales Maximization b. Asset Maximization c. Profit Maximization d. Wealth Maximization

A: Time value of money is a technique used to find the worth of money today, but that money is to be…

Q: QUESTION 2 Which of the following statements is false O A positive net working capital is desirable…

A: The income statement and balance sheet are the important financial statements of the business. The…

Q: How does the "Net Operating Working Capital"  differ  from    "Net Working Capital "? (write only…

A: Net Operating Working Capital: It is the difference between the total long period assets and total…

Q: hat does it mean by analyse profitability of invested capital

A: Introduction : In simple words, invested capital refers to the sum of all the funds that a business…

Q: How should you record capital expenditure? Debit a liability Debit capital Debit an expense Debit…

A: Capital expenditure: Capital expenditure refers to the expenditures that are incurred to increase…

Q: 2. What is the difference between Gross Working Capital and Net Working Capital? Explain your answer…

A: Gross working capital is referred as the investment of the firm in the current assets. Current…

Q: a. Give the entry to record the admission of Gino. b. What is the new capital structure after Gino's…

A: Admission of new partner in partnership firm   Journal entry for admission of new partner   New…

Q: oncept of capital maintenan -defines the level of profitabil

A: Capital maintenance: It is an accounting principle that says that a business should recognize its…

Q: xplain how is cost of capital used to make financial decisions? Why do you think funds generated…

A: In capital budgeting, the cost of capital is used to select projects with higher profitability so…

Q: Which of the following statements is CORRECT? Profit have no effect on capital Profit will…

A: Profit means the difference between the revenue from operation and total cost . Capital means the…

Q: You find capital in the same side of the balance sheet as liabilites because of ______________.…

A: From the business point of view, capital is also considered as a liability towards the owner…

Q: Required: Compute the following a. Contributed capital b. Legal capital c. Total shareholders'…

A: Share holders' Equity: It is the statement that provides the movement of the owner's balance from…

Q: Capitalizing a cost involves increasing what type of account?a. Liabilityb. Expensec. Stockholders’…

A: An asset is something which contains future economic value or future benefit.  A liability is…

Q: How much is the total expense? How much is the net income? What is the balance of the ending…

A: Accounting equation of the business says that total assets must be equal to total liabilities and…

Q: MM Approach of Capital Structure is similar to which other approach Net Income Approach O Gross…

A: The Modigliani and Miller Approach (MM Approach) of the capital structure states that the value of…

Q: A firm's financing costs include Select one: A. both A and B. B. interest expense C. depreciation…

A: The cost of interest or any other cost that is incurred by the firm at the time of borrowing funds…

Q: a. Return on investment b. Owners' wealth C. Sales revenue

A: The financial objective of any business is usually growing in the profits and expansion of their…

Q: Is cost of capital set by investors or managers?

A: Cos of capital (Coc) is rate of return required to make capital budgeting decisions for example,…

Q: Which of the following accounts is least likely to have its balance change on the worksheet? a.…

A: Salary payable = salaries payable is the amount payable to employees. supplies = supplies are the…

Q: The excess of current assets over the current liabilities is called: O a. Capital employed O b.…

A: Introduction: Currents Assets: Assets which can be converted in to cash easily with in a short…

Q: i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why…

A: Capital expenditures are typically one-time large purchases of fixed assets that will be used for…

Q: A) What is cost of capital? What does it represent?   B)  Why is it important to estimate cost of…

A: Sources of Finance means from where a business or firm is taking money in order to fund out its…

Q: Choose the correct.Cost of capital is helpful in corporative analysis of various:  A. Source of…

A: Answer:   Option A.

Q: Owner’s Equity is increased by net income and an investment by the owner True or False?

A: Owner's Equity  in general refers to the  rights to the assets of the owner. It is basically the…

Q: which ratio is of greater interest to the owner-manager, the rate of return on total assets or the…

A: The ratio refers to the measure that determines the relation between two numbers. In accounting, the…

Q: Calculate cost base, and capital gain (Loss), and capital gain tax, i

A: Capital gain/loss are the profits or rains arising from the transfer of a capital asset. It is the…

Q: A measure of asset utilization is A. Sales divided by working capital b. Return on total assets c.…

A: Notes:- Formula:- Return on Assets =Net Income/Average Total Assets Concept:- The return on assets…

Q: An investment is the use of money or capital for income or​ _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in the…

Q: ith the use of an example, briefly explain the main difference between the ex-ante and the ex-post…

A: Main Difference between ex-ante and the ex-post opportunity cost of capital: Ex-post risk is…

Q: Define the term Capital (Ownership) Costs?

A: The money value of goods and services consumed by the consumers and purchased by the producers is…

Q: The computation of total asset requirement is similar with judgmental approach' true or false Net…

A: The answers for true or false questions and relevant explanation are presented hereunder : What is…

Q: Discuss, using practical why capital ratio is used to share a loss on realization

A: The ratio is used because the partners having more capital is liable for more loss and the partner…

Q: The user cost of capital does NOT depend on a. The real interest rate b. The unit price of capital…

A: The question is related to Cost of capital. The cost of capital is the minimum required rate of…

Q: management

A: Working capital management is a strategy that is used by the company in order to ensure efficiency…

Q: Which of the following A. Capital + Liabilities = Assets B. Assets - Liabilities = Capital C. Assets…

A: The general accounting equation is Assets = Liabilities + Capital.

Q: Why isn’t accounting net income used in the net present value method of making capitalbudgeting…

A:

Q: Working capital is the difference between your total assets and total liabilities. * Right Wrong

A: Working capital is the difference between companies current asset and current liability, it is the…

Q: Explain Net Profit Margin, Return on Equity, Asset Turnover?

A: Here in this question we are require to understand the meaning of net profit margin, return on…

Q: A net income will increase the owners capital account. True or false

A: Net Income can be derived from an income statement. It is an excess of all revenue over the…

Q: The ratio sales to working capital is a measure of

A: Working capital turnover  ratio is a measure to determine how efficiently a Company's working…

Q: is NOT a consideration for Cost of Capital? A. Invetsor requirements B. Size of the Company C. All…

A: Cost of capital is very important for the company and cost of capital will decide the value of…

Q: Which of the following is not a function of Financial Manager a. Investment Decision b. Planning…

A: Three major functions of financial managers are:  Investment decisions Financing decisions Dividend…

Q: Which of the following is not an element of working capital? a. inventory b.property, plant and…

A: The question is multiple choice question  Required  Choose the Correct Option