The Effective Rate of Protection Is

question 52

Multiple Choice

The effective rate of protection is

• A)value added with protection divided by value added without protection.
• B)value added with protection.
• C)value added without protection.
• D)(value added with protection minus value added without protection)divided by value added without protection.

Understand the purpose and usage of petty cash funds in companies.

Perform bank reconciliation through the correct adjustment of book and bank balances.

Calculate the proceeds from discounting notes receivable at a bank.

Record the replenishment and expenses related to petty cash funds correctly.

---

Definitions:

Excessive Inventories

Situation where a company holds a larger quantity of inventory than necessary, which can tie up capital and increase holding costs.

Financial Planning Models

Tools or software used for forecasting a business's financial performance, evaluating business strategies, and planning for future financial actions.

Sales Forecast

An estimate of the amount of revenue that a company expects to generate from the sale of goods or services in a future period.

Planning Horizon

The future time period over which plans and strategies are developed and analyzed.