Three ways in which liabilities are used to finance business activities.

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Answer 1

Question

Chapter 10, Problem 1Q

To determine

To Describe: Three ways in which liabilities are used to finance business activities.

Expert Solution & Answer

Explanation of Solution

Liabilities: Liabilities are referred to as the obligations of the business towards the creditors for operating the business. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

The ways in which liabilities are used to finance business activities are as follows:

1. Liabilities are generated when a company purchases goods and services on credit.
2. Liabilities are obtained from the short-term bank loans to cover cash flows gaps in the business.
3. Liabilities are created from the issue of long-term debt to obtain cash for expanding the business.

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Shoreham Industries sells its product for $98 per unit. During 2023, it produced 85,000 units and sold 74,000 units (there was no beginning inventory). Costs per unit are: direct materials $24, direct labor $18, and variable overhead $7. Fixed costs are: $1,275,000 manufacturing overhead, and $142,000 selling and administrative expenses. The per-unit manufacturing cost under absorption costing is__.

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Answer 2

Question

Chapter 10, Problem 1Q

To determine

To Describe: Three ways in which liabilities are used to finance business activities.

Expert Solution & Answer

Explanation of Solution

Liabilities: Liabilities are referred to as the obligations of the business towards the creditors for operating the business. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

The ways in which liabilities are used to finance business activities are as follows:

1. Liabilities are generated when a company purchases goods and services on credit.
2. Liabilities are obtained from the short-term bank loans to cover cash flows gaps in the business.
3. Liabilities are created from the issue of long-term debt to obtain cash for expanding the business.

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Answer 3

Question

Chapter 10, Problem 1Q

To determine

To Describe: Three ways in which liabilities are used to finance business activities.

Expert Solution & Answer

Explanation of Solution

Liabilities: Liabilities are referred to as the obligations of the business towards the creditors for operating the business. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

The ways in which liabilities are used to finance business activities are as follows:

1. Liabilities are generated when a company purchases goods and services on credit.
2. Liabilities are obtained from the short-term bank loans to cover cash flows gaps in the business.
3. Liabilities are created from the issue of long-term debt to obtain cash for expanding the business.

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Answer 4

Question

Chapter 10, Problem 1Q

To determine

To Describe: Three ways in which liabilities are used to finance business activities.

Expert Solution & Answer

Explanation of Solution

Liabilities: Liabilities are referred to as the obligations of the business towards the creditors for operating the business. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

The ways in which liabilities are used to finance business activities are as follows:

1. Liabilities are generated when a company purchases goods and services on credit.
2. Liabilities are obtained from the short-term bank loans to cover cash flows gaps in the business.
3. Liabilities are created from the issue of long-term debt to obtain cash for expanding the business.

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Answer 5

Chapter 10, Problem 1Q

To determine

To Describe: Three ways in which liabilities are used to finance business activities.

Expert Solution & Answer

Explanation of Solution

Liabilities: Liabilities are referred to as the obligations of the business towards the creditors for operating the business. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

The ways in which liabilities are used to finance business activities are as follows:

1. Liabilities are generated when a company purchases goods and services on credit.
2. Liabilities are obtained from the short-term bank loans to cover cash flows gaps in the business.
3. Liabilities are created from the issue of long-term debt to obtain cash for expanding the business.

Answer 6

Chapter 10, Problem 1Q

To determine

To Describe: Three ways in which liabilities are used to finance business activities.

Expert Solution & Answer

Explanation of Solution

Liabilities: Liabilities are referred to as the obligations of the business towards the creditors for operating the business. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

The ways in which liabilities are used to finance business activities are as follows:

1. Liabilities are generated when a company purchases goods and services on credit.
2. Liabilities are obtained from the short-term bank loans to cover cash flows gaps in the business.
3. Liabilities are created from the issue of long-term debt to obtain cash for expanding the business.

Answer 7

Chapter 10, Problem 1Q

To determine

To Describe: Three ways in which liabilities are used to finance business activities.

Answer 8

Expert Solution & Answer

Explanation of Solution

Liabilities: Liabilities are referred to as the obligations of the business towards the creditors for operating the business. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

The ways in which liabilities are used to finance business activities are as follows:

1. Liabilities are generated when a company purchases goods and services on credit.
2. Liabilities are obtained from the short-term bank loans to cover cash flows gaps in the business.
3. Liabilities are created from the issue of long-term debt to obtain cash for expanding the business.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

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Three ways in which liabilities are used to finance business activities.

To Describe: Three ways in which liabilities are used to finance business activities.

Explanation of Solution

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