Matura, Inc

question 54

Essay

Matura, Inc. reported the following activities for the year:
.Borrowed $350,000 from the bank to be repaid in 5 years
.Issued stock to investors for $40,000 cash
.Paid dividends to shareholders totaling $10,000
.Purchased equipment by promising to pay $150,000 to a creditor over the next 3 years
A. Identify which activities are debt investments.
B. Identify which activities are equity investments.

Comprehend how costs behave with changes in the level of activity (relevant range, variable costs per unit, and fixed costs per period).

Calculate contribution margin and gross margin, and understand their relevance in decision-making.

Apply cost-volume-profit analysis to make informed decisions.

Identify and calculate fixed, variable, and mixed costs using different methods (e.g., high-low method).

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Definitions:

Insurance Expense

The cost incurred by a business to purchase insurance, which provides financial protection against losses.

Unexpired Insurance

Portion of insurance premiums paid that has not yet been used as of a specific date, and is considered a current asset on the balance sheet.

Accounts Receivable

Financial obligations that customers or clients have to a company for products or services provided but not yet compensated for.

Fees Earned

Income received from providing services.