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Natali [406]
3 years ago
10

After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $

5,900 debit balance. This result implies that Cleaver earned a net income of $5,900.
Business
1 answer:
KATRIN_1 [288]3 years ago
3 0

Answer:

INCORRECT.

In income summary account, all revenue accounts are closed by debiting them and crediting the income summary account. expense accounts are closed by crediting them and debiting income summary account. then on closing income summary account it shows debit balance if there is a net loss and it shows credit balance if there is a net income.

In the given case clever auto services has debit balance of $5,300 i,e it implies that clever auto services has loss .

Therefore above statement is wrong. It implies a loss of $5300 not the net income of $5,300.

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In the United States banking policies and procedures are set by the:
vfiekz [6]

Answer:

Federal Reserve.

Explanation:

Federal Reserve is a large central bank in Washington, D.C. that was founded in 1913. It lends money to other, smaller banks.

6 0
3 years ago
Telstra, Australia's largest telecommunications and media company, has net revenue of more than $ 26 billion (Australian). Some
klasskru [66]

The items included in its recent annual consolidated Dividends statement of cash flows presented using the direct method are listed.

1. Receipts from customers ------------- Operating Activities (O)

2. Dividends paid ----------- Financing Activities (F)

3. Payment for share buyback --------- Financing Activities (F)

4. Proceeds from the sale of property, plant, and equipment ------  Investing Activities (I).

5. Repayments of borrowings ------- Financing Activities (F)

6. Income taxes paid  ------------ Operating Activities (O)

A dividend is a distribution of profits by means of a business enterprise to its shareholders. while a organization earns a profit or surplus, it is able to pay a percentage of the earnings as a dividend to shareholders. Any quantity now not dispensed is taken to be re-invested within the commercial enterprise.

Dividends are bills a business enterprise makes to share earnings with its stockholders. they're paid on an ordinary basis, and they're one of the methods investors earn a return from making an investment in stock.

Learn more about Dividends here:-brainly.com/question/25845157

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4 0
2 years ago
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from t
son4ous [18]

Answer:

Explanation:

1).

Fixed overhead rate = Budgeted fixed overhead / Budgeted direct labor hours = $585,280 / 496000 = $1.18 per hour

Standard hour per unit = 496000 / 124000 = 4 hours per unit

Standard hours for actual production = 119300 * 4 = 477200 hours

Budgeted fixed overhead = $585,280

Actual fixed overhead = $555,750

Fixed overhead applied = SH * Standard rate of fixed overhead = 477200 * $1.18 = $563,096

Fixed overhead spending variance = Budgeted fixed overhead - Actual fixed overhead

= $585,280 - $555,750 = $29,530 F

Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead

= $563,096  - $585,280 = $22,184 U

2).

Standard rate of variable overhead = ($813,440 - $585,280) / 496000 = $0.46 per hour

Actual rate of variable overhead = $260,700 / 494000 = $0.5277327935 per hour

Variable overhead spending variance = (SR - AR) * AH = ($0.46 - $0.5277327935) * 494000 = $33,460 U

Variable overhead efficiency variance = (SH - AH) * SR = (477200 - 494000) * $0.46 = $7,728 U

4 0
3 years ago
Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza.
NikAS [45]

Answer:

a) Oven A  = 1,667; Oven B = 2,353 pizzas.

b) Oven A

c) Oven A

d) 13,334 pizzas

Explanation:

Since nothing was mentioned regarding her time availability, the capacity of each oven will not be taken into account.

The income equation for ovens A and B, respectively, are:

A=(14-2)x-20,000\\B=(14-1.25)x-30,000

Where 'x' is the number of pizzas sold.

a) The break-even occurs when income is zero:

A=0=(14-2)x-20,000\\x_A=1,666.66\\B=(14-1.25)x-30,000\\x_B=2,352.94

Rounding up to the next whole pizza, the break-even for oven A is 1,667 pizzas and for oven B it is 2,353 pizzas.

b) For x = 9,000:

A=(14-2)*9,000-20,000\\A=\$88,000\\B=(14-1.25)*9,000-30,000\\B=\$84,750

Income is greater with oven A, so Janelle should use oven A.

c) For x = 12,000

A=(14-2)*12,000-20,000\\A=\$124,000\\B=(14-1.25)*12,000-30,000\\B=\$123,000

Income is greater with oven A, so Janelle should use oven A.

d) She should switch ovens at the value for 'x' that causes B to be greater than A:

A

Rounding up to the next whole pizza, she should switch ovens at a volume of 13,334 pizzas.

7 0
3 years ago
Kevin Bacon is thinking about buying an investment. The investment option that he is thinking about buying is a written pledge b
Lesechka [4]

Answer:

Kevin is thinking about purchasing a corporate bond

Explanation:

Corporate bonds are bonds issued by firms.

Firms have two major instruments to attract investments from individual investors like Kevin: stocks and bonds.

Stocks are ownership certificates, their values and payouts fluctuates.

Bonds are debt certificates. Issuing them means the firms are obliaged to pay the interests until maturity and the face value of the bond at maturity.

6 0
3 years ago
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