All categories

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.

You might be interested in

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company

Bess [88]

Answer:

$17.1 million

Explanation:

The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project can be calculated as follows

DATA

Fair value of land = 4.6 million

Cost to build a plant = 11.8 million

Grading cost = 0.7 million

Solution

Initial investment = Fair value of land + Cost to build a plant + Grading cost

Initial investment = $4.6 million + $11.8 million + $0.7 million

Initial investment = $17.1 million

7 0

4 years ago

Doris's Fashions has just signed a $2.2 million contract. The contract calls for a payment of $0.6 million today, $0.8 million o

Pavlova-9 [17]

Answer:

$2.02 million

Explanation:

We need to calculate the present value of Doris's contract given the following three cash flows:

Year 0 $0.6 million

Year 1 $0.8 million

Year 2 $0.8 million

interest rate = 8.2%

present value (in million) = $0.06 + ($0.8 / 1.082) + ($0.8 / 1.082²) = $0.6 + $0.74 + $0.68 = $2.02 million

*present value formula = future value / (1 + r)ⁿ

4 0

3 years ago

The employment statistics computed from the establishment survey do NOT include: a. workers with two jobs. b. those who are self

Helen [10]

The employment statistics computed from the establishment survey do not include those who are self-employed. Thus option (B) is correct.

<h3>What is self employment?</h3>

Self Employment refers to the activity in which the individual carries out all the business activities by himself and he is the owner of the business. He operates the business for earning profits.

Self-employed people are not included in the employment data derived from the establishment survey. Therefore, The correct option is (B).

Learn more about Self Employment here:

brainly.com/question/16712087

#SPJ1

5 0

2 years ago

Which of the following would be considered a physical contaminant?

Cloud [144]

Answer:

Packaging staple is the correct example of physical contamination.

Explanation:

Physical contamination generally occurs in food when any foreign objects mostly hard and sharp objects that may result in injuries like choking, dental damage, and sometimes even death. Here, the packaging staple is a physical contaminant.

Other types of contamination are biological contamination and chemical contamination that occurs due to biological and chemical activities. The virus in a hamburger is an example of biological contamination, whereas, sanitizer residue and ice on frozen fish are examples of chemical contamination.

3 0

4 years ago

The measure of economic performance that compares how much a system produces versus the resources required to produce it, is kn

pogonyaev

<span>The measure of economic performance that compares how much a system produces versus the resources required to produce it, is known as *productivity*.</span>

8 0

3 years ago