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maria [59]
1 year ago
15

The company you are investigating recorded fictitious revenues. What is the effect on the asset turnover ratio?

Business
1 answer:
BARSIC [14]1 year ago
5 0

In case fictitious revenues are recorded asset turnover ratio will increase.

The asset turnover ratio measures the performance of an organization's assets in producing revenue or income. It compares the dollar quantity of income (revenues) to its overall belongings as an annualized percent. hence, to calculate the asset turnover ratio, divide net income or revenue by the average total belongings.

Fictitious revenues contain the sale of goods or services that no longer arise. Fictitious invoices may be fake, but can also contain valid clients. A fictitious invoice may be prepared for a legitimate patron despite the fact that goods are not added or services have no longer been rendered.

Accounting ratios, an important subset of monetary ratios, are a group of metrics used to degree the performance and profitability of an employer based on its financial reports. They provide a way of expressing the relationship between one accounting information factor to any other and are the basis of ratio evaluation.

Learn more about asset turnover ratio here brainly.com/question/13401474

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MrRissso [65]
We can avoid water pollution by keeping our water clean and trashless.
7 0
3 years ago
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Rachel receives employer-provided health insurance. The employer's cost of the health insurance is $5,600 annually. What is her
kati45 [8]

Answer:

$4,424

Explanation:

Calculation for her employer's after-tax cost of providing the health insurance

Using this formula

After-tax cost =Annually employer's cost of health insurance -(=Annually employer's cost of health insurance*Marginal tax rate)

Let plug in the formula

After-tax cost =$5,600- ($5,600 × 21%)

After-tax cost =$5,600- $1,176

After-tax cost =$4,424

Therefore her employer's after-tax cost of providing the health insurance is $4,424

8 0
2 years ago
Van Frank Telecommunications has a patent on a cellular transmission process.
Sonbull [250]

Answer:

Van Frank Telecommunications

December 31, 2016:

Debit Amortization Expense - Patent $4,400,000

Credit Accumulated Amortization-Patent $4,400,000

To record the revised amortization expense for the year.

Explanation:

Data and Calculations:

Patent's value on January 1, 2012 = $19,800,000

Patent's assessed lifespan = 9 years

Amortization expense for each year on straight-line = $2,200,000 ($19,800,000/9)

Accumulated Amortization for Patent = $6,600,000 (for 3 years)

Net book value of patent = $13,200,000 ($19,800,000 - $6,600,000)

Revised lifespan = 6 years

Revised amortization expense per year = $4,400,000 ($13,200,000/3)

8 0
3 years ago
Melanie invests $4,000 into an account offering 4% interest compounded annually. Gina invests $4,000 into a simple interest savi
denpristay [2]

Answer:

$4,900 (From simple interest method)

Explanation:

Given:

Amount invested (p) = $4,000

Interest rate for simple interest (r) = 4.5% = 4.5/100 = 0.045

Interest rate for Compound interest (i) = 4%

Number of year (t) = 5

Computation of amount from simple interest method:

Amount = p(1+rt)

Amount = $4,000[1+(0.045 × 5)]

Amount = $4,000[1+0.225]

Amount = $4,000[1.225]

Amount (from simple interest method) = $4,900

Computation of amount from compound interest method:

Amount = p(1+i)^t\\\\Amount = 4,000(1+0.04)^5\\\\Amount = 4,000(1.04)^5\\\\Amount = 4,000(1.2166529)\\\\Amount = 4,866.616\\\\

Therefore, Amount from simple interest method is higher .

3 0
3 years ago
What type of tax is import and export?
lubasha [3.4K]

The levy imposed on the import and export of products is referred to as custom taxes.

This is a tactic for limiting international trade as well as a defense or support for domestic customs duties. A tariff is a fee a government charges on goods and services imported from another nation in an effort to sway it. If the service is imported, the person or company who utilizes it is responsible for paying service tax. The importer of these services is therefore eligible to claim the tax credit. Contrary to imports, there is no tax on the exports of goods and services, which makes exports the tax-free alternative to imports.

There are two types of tariffs: fixed (a fixed amount per unit of imported products or a certain percentage of the price) and variable (the amount varies according to the price). People are less likely to purchase imported goods as a result of taxes because they become more expensive.

To learn more about custom taxes please click on the given link: brainly.com/question/18332556

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5 0
1 year ago
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