CAT Questions

---

The problem faced, by the airlines and cargo agents is the non availability of cargo space. Therefore, right course of action is to combat the problem.

 The primary reason to issue stock is to raise money to start and maintain an ongoing business.

Other Reasons::

The reasons that a company might want to raise money by issuing stock are:

• To develop new products

• To buy more advanced equipment

• To pay for new buildings and inventories

• To hire more employees

• To provide for a merger or acquisition

• To decrease debt

• To give company owners greater flexibility

• To place a value on the company.

Accounts receivable is listed as a current asset in the balance sheet, since it is usually convertible into cash in less than one year as it is the amount owed by the customer to the seller.

Variable costs are expenses that vary in proportion to the amount of goods or services that a business produces. 

Examples of variable cost include labor, packaging and raw materials.

Money spent by the government on government programs such as road work, electricity work, manhole, etc... that are aiming to contribute to the nation's social welfare in long and short term are referred to as Goverment Expenditures.