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1 year ago

How do most companies pay the current liabilities incurred by day-to-day operations?.

Business

1 answer:

elixir [45]1 year ago

6 0

Current assets, or possessions used up within a year, are generally used to settle current liabilities.

<h3>Why do you use the term "current liabilities"?</h3>

Current liabilities are debts or commitments that fall due within a year or during the regular business cycle. Additionally, current obligations are paid off by using a current asset, either by generating a fresh current liability or by using cash.
In accounting, current liabilities are frequently interpreted as all debts owed by a company that must be paid in cash within the fiscal year or the operational cycle of that particular company, whichever is longer.
Current assets, or possessions used up within a year, are generally used to settle current liabilities. Accounts payable, short-term loans, dividends, and notes payable are a few examples of current liabilities, along with any outstanding income taxes.

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A 17 year old child has $1,000 of adjusted gross unearned income for 2017 and no earned income. The marginal tax rate of the chi

borishaifa [10]

Answer:

A) $0

Explanation:

Provided information

Adjusted gross unearned income = $1,000

Marginal tax rate = 28%

By considering the above information, we can find out the child's tax liability

In the 2017 year, the credit for per child is up to $1,000 so there is no tax levied in the year 2017 as it is within the prescribed limit

Hence, child tax liability would be zero.

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3 years ago

If lynx corp. estimates its bad debt to be 1% of net credit sales, what will be the balance in the allowance for doubtful accoun

hodyreva [135]

<span>Using the numbers as written in the corresponding question, you would subtract 20,000 from 100,000 to get your amount of net profit. The 100k and the 20k are original sales figures, with the 100 being total sales and the 20 being sales returns. After subtracting the total returns you are left with net profit of 80k. You would then multiply the 80k by 1% to get your amount for bad debts. The total would be $800 of bad debt expenses (debts)..</span>

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3 years ago

What is Absolute and comparative advantage

Romashka [77]

Absolute Advantage is the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.
Comparative Advantage is the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.
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3 years ago

A made an offer to C to sell his car to him for $5,000 anytime before the end of June, but it wasn't in writing. Is the offer va

lisabon 2012 [21]

No because it’s not in writing

5 0

3 years ago

FIFO and LIFO costs under perpetual inventory system The following units of an item were available for sale during the year: Beg

klemol [59]

Answer:

a. Ending inventory under FIFO = $1,071,000

b. Ending inventory value under LIFO = $1,036,500

Explanation:

The data are merged together in the question and they are first separated before the questions are answered as follows:

Beginning inventory: 8,400 units at $200

Sale: 5,500 units at $300

First purchase: 14,500 units at $205

Sale: 13,400 units at $300

Second purchase: 15,500 units at $210

Sale: 14,400 units at $300

Number units available for sale = 8,400 + 14,500 + 15,500 = 38,400 units

Number of units sold = 5,500 + 13,400 + 14,400 = 33,300 units

a. What is the total cost of the ending inventory according to FIFO? Round your answer to the nearest dollar. $ 3,255,000 X

Since second purchase is 15,500 units and last sales is 14,400, the 5,100 closing stock must be from the last purchases. Therefore we have:

Ending inventory under FIFO = 5,100 * $210 = $1,071,000

b. What is the total cost of the ending inventory according to LIFO?

Beginning inventory balance after first sale = 8,400 - 5,500 = 2,900

Second sale distribution = 100% from first purchase = 13,400

First Purchase balance = 14,500 - 13,400 = 1,100

Third sale distribution = 100% from second purchase = 14,400

Second Purchase balance = 15,500 - 14,400 = 1,100

Ending inventory value under LIFO = (2,900 * $200) + (1,100 * $205) + (1,100 * $210) = $1,036,500

4 0

3 years ago