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How does the capital consumption allowance affect the firms cash flows?
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∙ 14y ago
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∙ 14y ago
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Why tax depreciation usually occur at a much faster rate than book depreciation?
By allowing businesses to depreciate their assets faster, the government (IRS) provides an incentive for firms to replace their assets quicker. This in turn stimulates the economy as firms are spending on capital expenditures more often.
Whole salers are firms that sell driectly to the consumer?
Retailers are firms that sell directly to the consumer, wholesalers are the firms that supply the retailers goods to sale to the consumers.
What are the big four accounting firms?
The largest firms are commonly referred to as "The Big Four." These four firms are: Deloitte and Touche, Ernst and Young, KPMG, and PricewaterhouseCoopers.
An advantage of bond financing is?
An advantage of bond financing is: a) Bonds do not affect owners' control. b) Interest on bonds is tax deductible. c) Bonds can increase return on equity. d) It allows firms to trade on the equity. e) All of the above.
How much of the firms earning are left as balance after the firms pay out dividends to its shareholders?
It depends how successful the business is
Is a firms cost of capital influenced by net income capital structure or par value of common stock?
Capital structure
What is a place for trading?
Ways by which firms may raise capital.
Why must firms make decisions about which goods they will produce?
because firms have access to limited resources of land, labor, and capital
Who advises firms when raising capital?
For medium to large size companies, firms typically seek the services of an investment bank.
Why are small firms important?
Small firms are important because it helps the beginner businessman to start his business with a limited initial capital investment.
Is there a universal optimal capital structure that would benefit all firms?
best universal capital structure for all companies?
A firms working capital and its cash requirements?
Working capital is considered a fixed asset and is part of the operational capital. Working capital is calculated as current assets minus current liabilities.
A hazard true or false -saving is the income received by firms thay do not pass back to houshold through consumption expenditure?
It is false. ... income received by housholds that do`nt pas back to firms... .
In the circular flow model, households supply firms with which of these items?
labor, capital, and resources
How does fixed sum tax affect firms fixed cost?
they don't
How does an increase in wages affect a firms marginal cost curve?
Bbg
What is capital deepening and how does it contribute to economic growth?
It is the process of increasing the amount of capital per worker. Also it contributes by firms and employees itself.
