Drew and Tammy decide to start a new cake-decorating business. They each contribute $10,000 to get the business off the ground. This money is considered
A. sales revenue.
B. long-term debt.
C. equity capital.
D. short-term financing.
E. cash flow.
Answer: C
You might also like to view...
Identify and discuss some of the desirable traits of a trainer.
What will be an ideal response?
Marilyn, George, and Christine pool their money to buy land for a vegetable garden. They plan to sell the produce at a roadside stand that summer. Are they partners?
A) Yes, since they co-own the land B) No, because they each control the use of the land C) Yes, because if there's a loss in the land's value, they will all share that loss D) No, they are merely joint venturers
Exhibit 21-2In preparation for completing the statement of cash flows using the spreadsheet method, Williams Company provided the following information relating to patents for 2016: Balance, 1/1/2016$4,800 Purchase of 10-year life patent for cash2,000 Sale of patent at book value(1,400) Amortization of patents (290) Balance, 12/31/2016$5,110 ? Refer to Exhibit 21-2. The Cash Flows from Operating Activities section prepared using the indirect method would include which of the following deductions or add-back amounts related to patents?
A. $(310) B. $(290) C. $ 290 D. $ 600
Grohs Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During December, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,530 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Fixed Element per MonthVariable element per tenant-dayRevenue - $33.00 Wages and salaries$3,800 $7.90Food and supplies 1,000 11.60Facility expenses 8,600 2.20Administrative expenses 6,200 0.20Total expenses$ 19,600 $ 21.90The food and supplies in the flexible budget for December would be closest to:
A. $30,510 B. $29,791 C. $30,000 D. $30,348