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inna [77]
2 years ago
15

During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. The financial statement effect of

these purchase transactions would be to: Select one: a. Increase expenses (Cost of goods sold) by $337.8 million b. Increase liabilities (Accounts payable) by $337.8 million and decrease noncash assets (Inventory) by $337.8 million c. Increase liabilities (Accounts payable) by $337.8 million d. Decrease cash by $337.8 million e. Decrease noncash assets (Inventory) by $337.8 million
Business
1 answer:
Elanso [62]2 years ago
7 0

(C) Increase liabilities (Accounts payable) by $337.8 million.

<h3>What is inventory?</h3>
  • Inventory, often known as stock, refers to the items and supplies that a company keeps for the purpose of resale, manufacturing, or use.
  • Inventory management is largely concerned with establishing the shape and positioning of stocked products.
<h3>What is purchasing on credit?</h3>
  • A credit buys, sometimes known as purchasing anything "on credit," is a purchase made today that will be paid for later.
  • When you use a credit card, for example, your financial institution pays for the products or services upfront and then collects the payments from you later.
  • Purchase on credit refers to an increase in liabilities.

Therefore, the correct option is (C) Increase liabilities (Accounts payable) by $337.8 million.

Know more about credit here:

brainly.com/question/26867415

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GDP is adjusted for inflation bias computed in different years using a common set of fixed base-period prices.
icang [17]

<u>Answer:</u>

<em>True. </em>

<em></em>

<u>Explanation:</u>

The nominal GDP is the estimation of all the last products and enterprises that an economy created during a given year. It is arrived by utilizing the costs that are at present in the year in which the yield is delivered. In financial matters, an ostensible worth is communicated in money-related terms. For instance, a notable quality can change because of movements in amount and cost.

The real GDP is the all-out estimation of the entirety of the last products and ventures that an economy produces during a given year, representing inflation.

6 0
4 years ago
Your sister is thinking about starting a new business. The company would require $300,000 of assets, and it would be financed en
Radda [10]

Answer: $40,500

Explanation:

The company would be expected to make a net income of 13.5% of the amount invested in assets.

ROE = Net income / Equity

Net income = ROE * Equity

Assets are the same as equity in this scenario because the company is entirely funded by equity.

= 13.5% * 300,000

= $40,500

5 0
3 years ago
When developing the advertising program, specifying the advertising objectives helps advertisers with other choices in the proce
melisa1 [442]

When developing the advertising program, specifying the advertising objectives helps advertisers with other choices in the process such as selecting media and evaluation.

A media planner determines the schedule of advertisements, including specific times and durations of advertisements.

Advertising program has its three main goals: to inform, to persuade, and to remember. Informative advertising increases awareness of brands, products, services, and ideas. You can announce new products and programs and educate people about the features and benefits of new and established products.

Advertising strategy consists of two key components for her: creating an advertising message and content and choosing an advertising medium.

Learn more about the Advertising program at

brainly.com/question/24967768

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7 0
2 years ago
Nickel Inc. purchased a tract of land as a possible future plant site in 2013. Valuable sulfur deposits were discovered on the l
Elina [12.6K]

Answer:

Debit $ 800,000 to the Asset Account.

Explanation:

With the help of successful efforts process we will find the solution of the given problem .The successful efforts process stated that,if the company are upgrading only those expenses or the cost  that are involved with the discovery of oil and the gas then reserves are identified.

  • The successful efforts process stated that when the cost of exploration is achieved then the cost of the exploration is capitalized .
  • So the sulfur reserves were identified therefore  $800,000 in exploration expenses would be debited to the Asset Account.  

4 0
3 years ago
"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o
JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

Download docx
7 0
3 years ago
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