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3 years ago

If the accountant forgets to adjust the Prepaid Expenses account, there will be:_____

Business

1 answer:

ivann1987 [24]3 years ago

7 0

Answer:

Option B, an overstatement of net income, is the right answer.

Explanation:

Option “B” is correct because when the prepaid expenses occur then it is recorded in the balance sheet on the asset side and the cash will be reduced by the same amount. However, if the prepaid expenses have not been adjusted then it will show the overstatement of net income because cash has been gone so actual cash will be lower than the recoded cash. Thus, option B is right.

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In recent years, the government of Pakistan has established a support price for wheat of about $0.20 per kilogram of wheat. At t

nirvana33 [79]

Answer:

$800 million more

Explanation:

Amount spent each year under the government wheat price-support program = $0.2 × 10 billion = $2 billion

Amount spent each year in an unregulated market for Pakistani wheat = $0.1 × 12 billion = $1.2 billion

Amount spent more each year under the government wheat price-support program than otherwise would have been spent in an unregulated market = $2 billion - $1.2 billion = $800 million

7 0

3 years ago

What is the price of a coupon bond that has annual coupon payments of $85, a par value of $1,000, a yield to maturity of 10%,

lukranit [14]

Let p be the price of the bond.
Annual coupons payment = 85
Par value (future value) is $1000.
So with a yield-to-maturity of 10% in three years,
p(1+10%) = 1000+3*85
solve for p
p=(1000+3*85)/1.10=1140.91

Note: since the coupon payment is not reinvested in the bond, the value is not compounded. Thus there is additional benefit if the payments are reinvested elsewhere. In other words, the yield-to-maturity actually under-estimates the potential yield.

4 0

4 years ago

On its December 31, 2020, balance sheet, Pharoah Company reported its investment in equity securities, which had cost $640000, a

sergey [27]

Answer:

$29,000

Explanation:

Pharoah Company Income Statement

Fair value of the securities $621,000

Less fair value of investment in equity $592,000

Unrealized gain $29,000

Therefore Pharaoh report on its 2021 income statement as a result of the increase in fair value of the investments in 2021 will be an unrealized gain of $29,000

8 0

3 years ago

Read 2 more answers

What are some of the characteristics and skills most employers look for in recruits? Check all that apply.

dangina [55]

Answer:

receptiveness to feedback, ability to analyze research to find a solution , creative thinking

Explanation:

At the time of selecting a person for a company, the employee wants the employee has the following traits, skills, knowledge, ability, etc

1. The employee should have the ability in analyzing the research so that the solution could be find out

2. He should have the creative ideas that can brings the innovation in an organization that ultimately benefits the organization

3. He should have the skill to receive the feedback with regard to what work he has done

7 0

3 years ago

Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The follow

Komok [63]

Answer:

$146,443.80

Explanation:

Step 1 : Equivalent Units of Production

<em>FIFO method is interested with Units worked on during the Production Period. Therefore make sure you begin by finishing Opening Work in Process Units</em>.

1. Materials

To Finish Work in Process Inventory (16,300 x 40%) 6,520

Started and Completed (100,600 - 16,300) x 100 % 84,300

Ending Inventory (24,600 x 90%) 22,140

Equivalent units of Production 112,960

2. Conversion Cost

To Finish Work in Process Inventory (16,300 x 80%) 13,040

Started and Completed (100,600 - 16,300) x 100 % 84,300

Ending Inventory (24,600 x 40%) 9,840

Equivalent units of Production 107,180

Step 2 : Cost per equivalent unit

<em>FIFO method is only interested in Costs incurred during the Production Period, therefore Cost in Beginning Inventory must be ignored as these were accounted for in previous year.</em>

Cost per equivalent unit = Total Cost ÷ Total Equivalent Units

Materials = $470,970 ÷ 112,960 = $4.17

Conversion Costs = ($190,740 + $399,080) ÷ 107,180 = $5.50

Step 3 : Cost in the ending Work-in-Process Inventory

Work-in-Process Inventory = Material Cost + Conversion Cost

= 22,140 x $4.17 + 9,840 x $5.50

= $146,443.80

Conclusion :

The total costs in the ending Work-in-Process Inventory assuming Bentley uses first-in, first-out (FIFO) process costing is $146,443.80

6 0

3 years ago