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

Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its ave

Ivan

Answer:

$53, 700

Explanation:

The question is not complete:

The completion is here:

6000 Units were produced and determine the total amount of direct manufacturing cost incurred.

Step 1: Calculate the Direct Manufacturing Cost

Direct manufacturing cost is the cost of those input raw materials that are directly related to the product as well as the units being produced.

Direct Manufacturing Cost = (The Direct Material/ Unit + The Direct Labour/ unit) x Units Produced

= ($5,20 + $3.75) x 6000 units

= $8.95 x 6000 units

= $53, 700

Therefore, the direct manufacturing cost is $53, 700

6 0

3 years ago

When a manufacturing company uses direct materials, it assigns the cost by debiting A. Direct Materials. B. Work-in-Process In

liraira [26]

When a manufacturing company uses direct materials, it assigns the cost by debiting Work-in-Process Inventory.

<u>Option: B</u>

<u>Explanation:</u>

The nearly completed products of a business that await fulfillment and subsequent selling or the valuation of those commodities is understood as a work-in-process inventory. These products are either produced in a line or in a buffer stock, or are pending for any further handling. The concept is employed in controlling the manufacturing and distribution chain. Optimum quality control is aimed at reducing system activity. Function in system requires storage space, reflects attached capital that is not accessible for investment and brings an inherent risk of previous expiry of the goods' shelf life.

8 0

3 years ago

Murphy started putting $100/month into his 401(k) earning 6% APR when he was 22 years old. How much will be in his account when

kotykmax [81]

Answer:

$199,149.08

Explanation:

a = 100, i=0.06/12=0.005, n=40*12=480, FVA = Future value of annuity

FVA = A*[(1+i)^n - 1/ i]

FVA = 100 * [(1+0.005)^480 - 1 / 0.005]

FVA = 100 * [9.957454/ 0.005]

FVA = 100 * 1991.4908

FVA = $199,149.08

So, the amount that will be in his account when he retires at age 62 is $199,149.08.

8 0

3 years ago

An individual actually earned a 4 percent nominal return last year. Prices went up by 3 percent over the year. Given that the in

jenyasd209 [6]

Answer:

Actual real after tax rate of return is 0.657%

Explanation:

Use fisher method to compute real return:

$Real\ return=\frac{1+nominal\ return}{1+inflation}-1$

$Real\ return = \frac{1.04}{1.03}-1$

=0.00971 or 0.971%

Calculate after tax return as shown below:

Federal tax rate is 28% or 0.28 and state tax is 6% or 0.06.

After tax return = 0.00971×(1 - 0.28) ×(1 - 0.06)

= 0.00657 or 0.657%

3 0

4 years ago

The merger between two general merchandise stores Sears and K-Mart who each carried some specialty items will most likely produc

irina1246 [14]

Answer:

B. Both economies of scope and economies of scale.

Explanation:

In microeconomics, economies of scale are the cost favorable circumstances that undertakings acquire because of their scale of activity, with cost per unit of yield diminishing with expanding scale.

Economies of scope are "efficiencies framed by assortment, not volume". In economics, "economies" is equivalent word to cost sparing and "scope" is synonymous with widening generation/benefits through differentiated items.

4 0

4 years ago