need solution will rate 1. Which of the following entities is more concerned abo
ID: 358869 • Letter: N
Question
need solution will rate
1. Which of the following entities is more concerned about control than any other entity?
A. Vendors
B. Suppliers
C. Both A and B
D. None of the above
2. Which of the following is associated with flexibility ?
A. Obsolescence of a major product line
B. Downtown in sales
D. Downturn in business cycle
C. None of the above
3. The benefit cost ratio is 8 and the investment is 200. The total incremental cash flows are:
A. 200
B. 400
C. 600
D. None of the above
4. Jim’s LLC is purchasing a new machine for $180,000. The new machine would generate cash flow $100,000 for each of the next three years. Carpet uses a discount rate of 15%. What is the payback(in years)?
A. 1.4
B. 1.6
C. 1.8
D. 1.9
5. which of the following statement records a firm’s financial situation on a single day?
A. Statement of financial position
B. Income statement
C. Statement of cash flows
D. All of the above
Explanation / Answer
1-D. Neither suppliers nor vendors have any role in control of an organization.They cannot control it in any way because they only supply and provide any thing needed by an organization as long as the organization seeks them.
2-D.Business cycle have both upturn and downturn.It has flexibility because in any way business will bounce back to the previous level.
3-A-Total incremental cash flow will be $200, because only $200 is the cash flow from this example.
4-C- 1.8 years. Payback period= Investment/cash flow per year= 180,000/100,000=1.8
5-A- Statement of financial position which is also called as balance sheet records a firm’s financial situation on a single day because it fluctuates in daily basis. Income statement & Statement of cash flows cover for a period of time e.g.monthly, quarterly, half-yearly, yearly.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.