Answer:
deferral
Explanation:
Adjusting entries are when changes are made to already recorded journal entries.
Categories of adjusting entries :
- accrued revenues
- accrued expenses
- unearned revenues
- prepaid expenses
- depreciation.
Prepaid expenses are payments made for services yet to be delivered.
For example, paying for a year's worth of subscription on your streaming service
Prepaid expenses is an example of deferred payment, so the adjustment should be a deferral
Answer: $200,000 and its economic profits were zero.
Explanation:
First and foremost, we should note that when calculating accounting profit, the implicit cost isn't taken into consideration.
Therefore, the accounting profit will be:
= Revenue - Explicit Cost
= (4000 × 300) - Explicit cost
= 1,200,000 - 1,000,000
= 200,000
Then, Economic Profit will be:
= Accounting profit - Implicit cost
= 200,000 - 200,000
=0
Therefore, its its accounting profits were $200,000 and its economic profits were zero.
Answer:
Explanation:
Debit $ Credit$
a. Cash 3000000
Sales revennue (500*6000) 3000000
Warranty expenses 55000
Estimated warranty liability 55000
Estimated warranty liability 20000
Cash account 20000
b. Cash account 3000000
Sales revenue (500*6000- 56000) 2944000
Unearned warranty revenue 56000
Warranty expenses 20000
Cash account 20000
Unearned warranty revenue 20364
Warranty revenue (56000*20000/55000) 20364
Answer:
5.7 1
Explanation:
Given:
- Earning expect: $100,000
- Grow rate: 3% = 0.03 (g)
- Discount rate: 10% = 0.1 (r)
- Number of shares: 250,000
We need to find the EPS because all of the earnings are paid out as dividends
= $100,000/250,000 shares
= $0.4
=> Current price:
P = D1 / (r-g)
<=> P = 0.4 (0.1 - 0.03) = 5.7 1
So the price per share of stock is 5.7 1
Hope it will find you well
Answer:
c. cost-leadership strategy
Explanation:
Contour Autos tend to decrease the price of the product and that the quality served of the product is acceptable and not degraded. In this manner as against the normal industry the company supplies same quality goods at lower prices.
This decreases the cost for consumers and therefore, it is termed as Cost-Leadership strategy.
The Company tends to lead in the market through lower cost of goods supplied with the same quality.
