1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
solong [7]
3 years ago
12

If the effect of the credit portion of an adjusting entry is to increase the balance of a liability account, which of the follow

ing describes the effect of the debit portion of the entry?
A. increases the balance of an expense account
B. increases the balance of an asset account
C. decreases the balance of an owner's equity account
D. increases the balance of a contra asset account
Business
1 answer:
astra-53 [7]3 years ago
7 0

Answer:

A. increases the balance of an expense account

Explanation:

The following effect can be shown through an example -

If we increase the credit portion of an adjusting entry to increase the balance of a liability account, the effect of the debit portion will be an expense.

For example -

When wages expenses incurred but not paid, at that moment, a liability will increase due to that effect. The journal entry to record that transaction is -

Wages expense     Debit

Wages payable      Credit

Therefore, the adjusting entry increases the liability as well as the expenses.

You might be interested in
2. NEIU Company has no beginning and ending inventories, and reports the following information for its only product: Direct mate
Mrac [35]

Answer:

Product cost per unit = $13

Explanation:

<em>Absorption costing values units of inventory and production using full cost per unit. Full cost per unit includes variable cost and a portion of fixed production overheads. The fixed production overhead are charged to cost units using predetermined overhead absorption rate.</em>

The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads.

Total full absorption cost = 125,000 + 100,000 + 75,000 + 25,000=325,000

Full cost per unit = Total full absorption cost/Number of units

                            = 325,000/25,000 =$13

<em>Note that we excluded non- production cost like selling and administrative from the computation because they are not related to production</em>

Product cost per unit = $13

4 0
3 years ago
An industry is composed of 10 firms, all with equal sales (e.g. firm 1 sales are 10% of the market, firm 2 sales are 10% of the
Gelneren [198K]

Answer:

0.40

Explanation:

The four firm concentration ratio = 10%+ 10% + 10% + 10% = 40% =0.40

I hope my answer helps you

5 0
3 years ago
Write the interrelationship between education and profession​
Nutka1998 [239]

Explanation:

in order to have a profession you need to get an education first ... if you start out working along side someone,that someone is giving you an education in how to do the job you want to do. if you are planning a profession such as a doctor or a lawyer , prepare yourself for a lot of education..

8 0
2 years ago
Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)
Mila [183]

Answer: Cost of Goods sold

Explanation:

Common size analysis refers to making all entries in the income statement, a percentage of sales for that year.

Current Year                                                      Prior Year

Sales                                      100%                           100%

Cost of Goods sold               75.7%                          46.5%

Gross Profit                            24.3%                          53.5%

Operating expenses             17.3%                             35%

Net Income                              7.0%                            18.5%

<em>Looking at the percentages above, one can see that the COGS increased the most from the previous year by going from 46.5% to 75.7% representing an increase of 29.2%.</em>

<em>This had the most impact on Net income as it substantially reduced Gross profit. </em>

8 0
3 years ago
Sasha works for a large corporation, and sometimes, she finds it difficult to see how she fits into the corporate picture. Howev
FinnZ [79.3K]

Answer:

C. It can boost employee productivity.  

Explanation:

Sasha's company decision to establish an employee stock ownership plan has the potential benefit of boosting employee productivity because staff members and people in general are motivated by rewards.

Employee stock ownership plan is a staff reward scheme where a company's employees are awarded shares of the company they work for, hence they become both staff and shareholders of that company.

Sometimes these plans are futuristic, they are awarded at a certain date in future if the company achieves certain goals. Hence the productivity of employees are boosted in the bid to boost the company's performance and achieve their share rewards

8 0
3 years ago
Other questions:
  • A company wants to set up operations in a country with the following corporate tax rate structure: Taxable Income Tax Rate &lt;$
    8·1 answer
  • Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alte
    5·1 answer
  • How many megacities (those with 5 million or more inhabitants) were there in 1950, and how many do estimates suggest there will
    13·1 answer
  • One reason that some central banks try to control exchange rates is that doing so helps control inflation.A. TrueB. False
    15·1 answer
  • A common argument in favor of restricting international trade in good x is based on the premise that (A) international trade red
    7·1 answer
  • Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one m
    12·1 answer
  • Black Lilies is a fledgling apparel company which is run and managed by its creator Patricia. She has advertised for an accounti
    6·1 answer
  • Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.7 percent, a YTM of 7.7 percent, and has 14
    9·1 answer
  • Which organizational pattern puts emphasis on the benefits of the speaker's policy in comparison to the alternatives but is base
    8·1 answer
  • A(n) _______ is about transforming how a business interacts with its customers on the world wide web.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!