The correct answer is "ending inventory of one period is the beginning inventory of the next period."
An inventory error not only affects the current year's cost of goods sold, gross profit, net income, current assets, and equity, but also the next period's statements because ending inventory of one period is the beginning inventory of the next period.
That is why the manager has to be strict regarding the inventory of a company. Inventory has a cost that can be translated into money. So accountants have to be perfect regarding the inventory. So yes, ann error in keeping the inventory affects the company in that the ending inventory of one period is the beginning inventory of the next period. An internal audit can reveal the mistakes in accurately keeping the inventory. So it is better to put extra attention in the process so nothing wrong would be revealed after the audit.
Answer:
$14,620.00
Explanation:
Depreciation on a straight line is constant throughout the useful.
For able towing, depreciation expenses for 2012 and 2013 will be
Depreciable amount = cost price - salvage value
=$90,000- $18,000= $72,000
Depreciation will be $72,000 /10 years which will be $7200 per year
For two years will be $7200 x 2= $14,400
At the beginning of 2014, the book value will be $90,000 - $14,400=$ 75,600
new salvage value beginning 2014 is $2500
Depreciable amount is $75,600- $2,500=$73100
use-life life is 5 years.
The depreciation rate for 2014 is $73,100 /5 years
=$14,620.00
Answer:
$555
Explanation:
The computation of the interest revenue is shown below:
= Account receivable × rate of interest × number of months ÷ (total number of months in a year)
= $22,200 × 10% × (3 months ÷ 12 months)
= $2,220 × (3 months ÷ 12 months)
= $555
The three month is calculated from October 1 to December 31. The six month period of note is ignored
Answer:
is a time deposit of money in an international bank located in a country different from the country that issued the currency.
Explanation:
In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.
Simply stated, money refers to any asset which can be used to purchase goods and services by customers.
This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.
Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.
The three (3) main functions of money all over the world are;
I. Medium of exchange.
II. Unit of account.
III. Store of value.
The European System of Central Banks (ESCB) which was established under the Treaty on European Union (TEU).
It comprises of the European Central Bank (ECB) and the national central banks of all the 27 European Union (EU) member states, irrespective of adopting the Euro (£) or not. This has helped the European Union (EU) member states to achieve tight corporations and memorandum of understanding (MOUs) such as TARGET2 (single payment system).
Eurocurrency is a time deposit of money in an international bank located in a country different from the country that issued the currency.
