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1 year ago

A company's plan for the acquisition of long-lived assets, such as buildings and equipment, is commonly called a:

1 answer:

7 0

A company's plan for the acquisition of long-lived assets, such as buildings and equipment, is commonly called a Capital Budget.

<h3>What is a Capital Budget?</h3>

The procedure a company uses to assess potential big projects or investments is called capital budgeting.
Before a project is accepted or denied, capital budgeting is necessary. Examples of such projects include the construction of a new plant or a significant investment in a third-party enterprise.
It is a means of locating a superior offer for the expansion of the company.
A company's bottom line is frequently affected by significant capital decisions, which are frequently tied to capital planning.
In capital budgeting, projects that improve a business are chosen. Almost everything, including the acquisition of land or the purchase of fixed assets like a new truck or machinery, can be included in the capital budgeting process.

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The following transactions relate to the City of Middleton, which has a fiscal year end of December 31. The city adopts budgets

scoundrel [369]

Answer:

See explaination

Explanation:

--Capital projects fund journal

Dr. Cash $2,000,000

Cr. Other Financing Source—Proceeds of Bonds $2,000,000

--Governmental activities journal

Dr. Cash $2,000,000

Cr. Bonds Payable $2,000,000

--Debt service fund journal

Dr. Estimated Other Financing Sources—Inter fund Transfers In $ 30,000

Cr. Appropriations $ 30,000

--General Fund journal

Dr. Budgetary Fund Balance $ 30,000

Cr. Estimated Other Financing Uses—Inter fund Transfers Out $ 30,000

--Capital projects fund journal

Dr. Investments $1,000,000

Cr. Cash $1,000,000

--Governmental activities journal

Dr. Investments $1,000,000

Cr. Cash $1,000,000

--General Fund journal

Dr. Other Financing Uses—Inter fund Transfer out $ 30,000

Cr. Cash $ 30,000

--Debt service fund journal

a) Dr. Cash $ 30,000

Cr. Other Financing Sources—Inter fund Transfer In $ 30,000

b) Dr. Expenditures—Interest $ 30,000

Cr. Cash $ 30,000

--Governmental activities journal

Dr. Expenses—Interest on Long-term Debt $ 30,000

Cr. Cash $ 30,000

--Capital projects fund

Dr. Interest Receivable $ 11,555

Cr. Revenues—(optional to put source, Interest) $ 11,555

--Governmental activities journal

a) Dr. Interest Receivable $ 11,555

Cr. General Revenues—Investment Earnings—(optional to indicate restriction, Restricted for Capital Projects) $ 11,555

b) Expenses—Interest on Long-term Debt $ 30,000

Interest Payable $ 30,000

Debt service fund

Note that there is no accrual of interest expenditure since the expenditure is not legally due until after the first of the year.

4 0

3 years ago

Return on sales for south drive is lower in year 2 than year 1 what expense is causing this lower?

sergey [27]

The correct answer is d: Interest Expense. The expense that is causing lower profitability is the Interest Expense.

The fee incurred by a business for borrowed cash is known as an interest expense. On the income statement, it is listed as a non-operating expense. It stands for the interest due on all borrowings, including bonds, loans, convertible debt, and credit lines. In essence, it is determined by multiplying the interest rate by the debt's outstanding principal. Instead of the amount of interest paid over the reporting period, interest expense on the income statement shows interest accrued during that time. While interest costs are tax deductible for businesses, they may not be in the case of an individual, depending on their jurisdiction and the purpose of the loan.

Since there are typically lags between interest accruing and interest paid, interest expense frequently appears as a line item on a company's balance sheet.

Comparative income statements for South Drive Company for Year 2 and Year 1 are given below.

................................................Year 2.......................... Year 1

Sales ....................................900,000 .......................500,000

Cost of goods sold ..........(432,000) ......................(240,000)

Gross profit on sales ........468,000 ........................260,000

Wage expense ..................(54,000) .......................(30,000)

Rent expense ....................(90,000) .......................(50,000)

Operating income .............324,000 ........................180,000

Interest expense............... (80,000)........................ (30,000)

Net income........................ 244,000 ..........................150,000

Return on sales for South Drive is lower in Year 2 than in Year 1. What expense is causing this lower profitability?

a. Cost of Goods Sold

b. Wage Expense

c. Rent Expense

d. Interest Expense

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2 years ago

If a VA purchase contract is $340,000 and the funding fee is 1.75% what is the total loan amount?

eimsori [14]

Multiply 1.75%×340,000

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2 years ago

Based on your understanding of help desk operations a job stress, make a list of ten or more different factors in a help desk en

Maksim231197 [3]

Explanation:

Monotonous work: Sometimes monotonous work irritates the help desk.

Seeking for same information: When providing the same information again and again to a different customer.

Lack of work recognition: At times failing to appreciate the effort create stress.

Talking without rest: Continuously answering without taking a break might cause stress.

Work pressure: When the work pressure increases there is a possibility of stress being more.

Inflexible working hours: Change in life style due to change in work hours might create stress.

Work-life imbalance: This also act as a source for stress.

Taking regular medications, family pressure, undervalued pay scale everything counts for stress.

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3 years ago

Jory wants to create a diagram to compare and contrast the qualifications of the three Energy pathways. Which qualifications cou

Sedbober [7]

Answer:

answer is the first one

Explanation:

I think

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2 years ago