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Mazyrski [523]
3 years ago
12

Green Inc. made no adjusting entry for accrued and unpaid employee wages of $38,000 on December 31. This error would Multiple Ch

oice Understate assets by $38,000. Overstate net income by $38,000. Understate net income by $38,000. Have no effect on net income.
Business
1 answer:
Naya [18.7K]3 years ago
4 0

Answer:

The answer is B. Overstate net income by $38,000.

Explanation:

Accrued expense is an expense that has been enjoyed or incurred but has been paid for. Examples of an accrued expense are unpaid wages/salary, unpaid electricity bill etc.

Usually, the adjusting entry for accrued expense is to debit the expense and debit increases expense while credit decreases it. Since there is no adjusting entry, that means no expense is being recognized on the income statement for this transaction. Hence, the net income increases (overstated). because ordinarily expense reduces net income.

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KIM [24]
For the answer to the question above, I think that
Roxanne is likely to use the <u><em>"Test market"</em></u> <span>method to forecast demand. </span>
I hope my answer helped you. Have a nice day!
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3 years ago
Sorry i accidently did this. do not know how to work
san4es73 [151]

Answer:

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Explanation:

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6 0
2 years ago
Read 2 more answers
Henry Jones contributed equipment, inventory, and $57,300 cash to a partnership. The equipment had a book value of $27,800 and m
Oliga [24]

Answer:

A. $86,900

Explanation:

Henry’s capital account will be credited by the amount of $86,900. See computation below.

Cash $57,300

Equipment 34,100

Inventory 10,400

Note payable (14,900)

————

Total $86,900

*Both the equipment and the inventory will be recorded on partnership’s book at fair market value at the time of contribution.

*The partnership may absorb the obligation if it is associated with an asset contributed by partner. Thus, it will be deducted to his capital account as contribution to the partnership.

3 0
4 years ago
If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is:_________
Ira Lisetskai [31]

If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is: 400.

<h3>What is maximum gain potential/capital gain?</h3>

When an investor invests in or sells put option on stocks she owns, she is selecting a good approach to hedge against loss or bring additional funds in her account. Whenever a seller invests cover call options, this is the most frequent form.

Now according to the question-

  • A short stock with such a short puts is an income strategy with unlimited loss potential.
  • Although the customer will profit if the price falls, the customer signed an in-the-money put that would be exercised, requiring the client to acquire stock at 80 for a $100 loss here on stock shorted at 79.
  • However, the customer collected $500 in premiums, for a total gain of $400.
  • The break even point for a brief stock-short put is the short sale price plus the premium.
  • In this scenario, the break-even point is 84, and the maximum gain is four points, between 84 to 80.

Therefore, the maximum gain potential is 400.

To know more about the maximum gain/capital gain, here

brainly.com/question/1381751

#SPJ4

4 0
1 year ago
Excavate n’ Fill, Inc., enters into a contract with Fred to fill and landscape an abandoned quarry on Fred’s land. Fred advances
Delicious77 [7]

Answer:

restitution.

Explanation:

In contract law, restitution refers to a party forfeiting monetary gains that they obtained illegally from the other party involved in the contract. Restitution is very commonly used in contract law since it is meant to restore an injured party due to damages suffered from another parties unlawful performance. Ideally, when restitution is applied, the injured party should return to their original position.

In this case, Excavate n' Fill must return the $10,000 that Fred gave them as advanced payment. The restitution of the $10,000 should restore Fred's original position.

6 0
3 years ago
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