Answer: Direct and indirect statement of cash flows
Explanation: statement of cash flows shows the overall computed inflow and outflow of cash that took place in an organization over a given period of time. It shows how well an organization managed it's cash which is used to settle it's debts and make profit.
The direct method only considers the cash inflow and outflow into account and produces the cash flow from it's operations.
The indirect method considers the net income as the starting point and prepare the inflow and outflow using adjustments.
Answer:
Economic profit = $-40,000
Accounting profit = $115,000
Explanation:
Accounting profit is total revenue less total cost or explicit cost.
Accounting profit = Total revenue - Total cost
Total revenue = 25,000 x $15 = $375,000
Total cost = $260,000
Accounting profit = $375,000 - $260,000 = $115,000
Economic profit is accounting profit less implicit cost or opportunity cost
Economic profit = Accounting profit -Implicit cost
= $115,000 - $155,000 = $-40,000
I hope my answer helps you
Answer:
Accounting Profit = $115.000 and Economic Profit= -40.000
Explanation:
Accounting profit is the monetary costs a firm pays out and the revenue a firm receives.
Accounting Profit = Total Revenues - Explicit Costs
Accounting Profit = ($15 x 25000) -$260,000=375.000-$260,000
Accounting Profit = $115.000
Economic profit is the difference between the total revenue received by a business and the total explicit and implicit costs for a firm.
Economic Profit = Accounting Profit - Implicit Cost
Economic Profit= $115.000 -$155,000
Economic Profit= -40.000
Answer:
False
Explanation:
Shadow banking systems includes financial institutions that are not regulated by the government or operate outside government-regulated banking systems.
Shadow banks channel money from savers to borrowers outside the regulated banking system.
Commercial and community banks are regulated by the government, therefore they are not part of the shadow banking system.
The shadow banking system includes non-bank financial institutions that perform bank-like operations but outside the traditional banking system. They play a role in the overall monetary system which, when functions smoothly, facilitates economic transactions. However, problems can arise if these institutions face stress, and their less regulated nature can present added risks.
The shadow banking system doesn't refer to specific banks like commercial or community banks. Instead, it includes nonbank financial institutions such as investment banks, hedge funds, money market funds, and insurance companies. These entities perform bank-like activities but outside of the traditional banking system, hence 'shadow'. They contribute to the economy by linking investors and borrowers, just like traditional banks. However, they are less regulated.
These nonbank institutions come into play in the overall process of money creation. Money is deposited in bank accounts, which is then loaned to businesses, individuals, and other entities, including shadow banks. This integrated system of money, loans, banks, and non-bank institutions ideally gives rise to smooth economic transactions.
However, as exemplified by the 2008-2009 Great Recession, this system can also cause problems when these institutions face financial stress such as asset devaluation, making loans less available. The shadow banking system, due to its less regulated nature, can pose additional risks to the overall financial system and economy if not managed properly.
#SPJ6
Answer:
The journal entry to record the purchase raw material would include a debit to raw material of $79000 and credit to Raw materials of $109000..
Explanation:
Since the raw material is coming into the company, we have debit raw material and the opening balance is already there in the books of the business. hence raw materials increases.
Answer: Sequence check; diagnostic
Explanation:
A sequence check is carrying out test on a list of items for accurate order in which they are arranged or are placed based on the key item with which they are being identified.
Diagnostic analysis takes a deep insight into a study(descriptive analysis) then finds out the cause of such outcome.
Detecting gaps in records and duplicate entries is referred to as a sequence check which is a type of diagnostic analysis.