Answer:
Correct answer is letter D, $11,000 cost, five-year life and $1,000 salvage value
Explanation:
To compute depreciation expense of an asset using straight-line method of depreciation, the information we needed is 3,
1. cost of an asset
2. life of an asset (in year)
3. residual value (if available)
<em>* residual value of an asset is to be determined by the company, some asset don't have scrap value assigned.</em>
<em />
<em>FORMULA </em>
<em>The difference between the cost of an asset and the expected residual value over the number of years it is expected to be useful.</em>
<em>(cost of an asset - residual value ) / life of an asset</em>
Answer:
c. The "apparent," but not necessarily the "true," financial position of a company whose sales are seasonal can change dramatically during a given year, depending on the time of year when the financial statements are constructed.
Explanation:
Financial statements are used to show the financial activity of a business within a given period.
One of the principles of a accounting is periodicity. This requires businesses to report their financial position at regular intervals consistently, and not in an inconsistent manner. So if a business reports their finances twice a year. At year end and at mid year, it is possible that at mid year due to seasonal sales performance will be high and business is perceived to be highly profitable.
But financial report at end of year in the off-season will show low performance.
So for seasonal businesses there can be apparent view of a business during the year that can change dramatically because of time at which reports are made.
Answer:
Identification of Features Applying More to Job Order Operations, Process Operations, or Both:
Features
1. Cost object is a process. Process Operations
2. Measures unit costs only at period-end. Process Operations
3. Uses indirect costs. Both
4. Transfers costs between Work in
Process Inventory accounts. Process Operations
5. Uses only one Work in Process account. Job Operations
6. Uses materials, labor, and overhead costs. Both
Explanation:
The main difference between the two operations is the manner costs are accumulated. Job operations accumulate costs for different jobs that are not similar. Process operations accumulate costs to show the process a product passes through. The product of a process operation is not unique like the product of a job operation.
Answer:
(A) Accounts Payable - Liabilities
(D) Equipment - Assets
(E) Supplies - Assets
(F) Retained earning - Owner's Equity
(H) Cash - Assets
Explanation:
The major categories in a balance sheets are: Assets, Liabilities and Owner's Equity,
Assets are many things (as equipment, machinery, Receivables, etc) that belongs to the company, please see details in the answer.
Liabilities represent the obligations of the company with all kind of creditors.
And finally Owner's Equity it's the Capital that support part of the Assets along with the Liabilites.
Requirement 1: [Find attachment 1]
Requirement 2: [ Find attachment 2]
