Career prep b final exam / post test

Parent Inc. purchased 30% of the common stock of Affiliate Co. on January 1, YR01 for $5,000 and appropriately accounted for thi

blondinia [14]

Answer:

net cash from investing activities = -$4,940

operating and financing activities are not affected.

Explanation:

the journal entries should be:

January 1, socks purchased

Dr Investment in Affiliate 5,000

December 31, dividends received

Cr Investment in Affiliate 60

December 31, Affiliate reports net income

Dr Investment in Affiliate 300

Cr Revenue from investing activities 300

Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.

The cash flow from investing activities will:

Decrease by $5,000 due to the purchase of stocks.
Increase by $60 due to the dividends received.
net cash from investing activities = -$4,940

4 0

4 years ago

Depreciation is the accountant's estimate of the cost of ______ used in the production process matched with the benefits produce

faust18 [17]

Answer:

Fixed assets and equipment

Explanation:

Depreciation is the accountant's estimate of the cost of fixed assets and equipment used in the production process matched with the benefits produced from owning it.

It is the decrease in the value of assets and the method used to reallocate the cost of asset over its useful life span.

Assets can be categorized as :

1. Current

2. Fixed

3. Tangible

4. Intangible assets.

In accounting, there are several standard methods of computing depreciation expense:

1. Fixed percentage

2. Straight line

3. Declining balance methods.

4 0

3 years ago

The person may not have made a wise choice initially; the chosen career may no longer exist; values and interests may have chang

boyakko [2]

Answer:

Changing Careers

Explanation:

My best guess would be that the reason their values and interests may have changed is either due to going back to school or changing careers. In both cases, your interests would of changed to fit what you chase but changing seems more plausible. Hope this helped and solved your question!

8 0

3 years ago

Read 2 more answers

Consumer protections related to the Internet and telecommunications and direct-mail fraud are covered under the Financial Practi

Elden [556K]

False, it is not protected

4 0

3 years ago

A company has the following account balances: Sales revenue $2,000,000: Sales Returns and Allowances $250,000: Sales Discounts $

Naily [24]

Answer:

0.25 or 25%

Explanation:

The computation of the gross profit rate is shown below:

Gross profit rate = Gross profit ÷ Net sales revenue

where,

Net sales revenue = Sales revenue - Sales Returns and Allowances - Sales Discounts

= $2,000,000 - $250,000 - $50,000

= $1,700,000

And, the Cost of goods sold is $1,275,000

So, the gross profit is

= $1,700,000 - $1,275,000

= $425,000

So, the gross profit rate is

= $425,000 ÷ $1,700,000

= 0.25 or 25%

6 0

3 years ago