According to the Monetary/nonmonetary Method,monetary Balance Sheet Accounts Include

question 41

Multiple Choice

According to the monetary/nonmonetary method,monetary balance sheet accounts include

• A)for example,cash,marketable securities,accounts receivable,notes payable,accounts payable of a foreign subsidiary.
• B)for example,stockholders' equity and long term debt.
• C)for example,inventory paid for in cash,but not working capital.
• D)COGs,Sales,Net Income.

Analyze and calculate net operating income based on various budgeted information.

Determine the required budgeted purchases of raw materials based on production needs and inventory policy.

Calculate total budgeted cash disbursements for raw materials purchases.

Understand cash budgeting including the minimum cash balance requirements and financing needs.

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Definitions:

NPV

Net Present Value; a calculation used to determine the value of an investment by considering the present value of its expected future cash flows minus the initial investment cost.

Contribution Margin

The amount by which a product's sales price exceeds its total variable costs, indicating how much contribution the product makes towards fixed costs and profits.

Variable Cost

Costs that vary directly with the level of output or production activity, such as raw materials or hourly labor.

Cash Break-even

The point at which a company does not make a profit or loss from operations, calculated by covering all cash operating expenses with the revenue generated.