Answer:
The correct answer is (C)
Explanation:
Planning for capital expenditures is an important aspect which helps the organisation to grow in future and to mitigate the risks of financial distress. Amount spent on office equipment is not a part of planning for capital expenditures because in time fixed assets such as office equipment wear out or become superseded. All other reason are a part of planning for capital expenditures.
In order to solve abb's problem, the company needed a new technology that could change the companies organizational culture. In many cases, changing how an organization runs and treats their employees gives them advantages to tailor ideas to what fits their employees best. When the culture of an organization aligns their values with the employees there is better work and ideas forming.
Answer:
b. credit to Rent Revenue of $3,200
Explanation:
Cash collected in advance results in the the creation of an asset and a liability. Hence a debit to cash account and a credit to deferred revenue. When the revenue is earned, it is recognized as a credit to revenue and a debit to deferred revenue with the amount earned.
Amount earned as at December 31
= 1/3 × $9,600
= $3,200
Entries required
Debit Deferred Rent revenue $3,200
Credit Rent Revenue $3,200
Being entries to recognize revenue earned as at December 31
Answer Explanation:
For the manufacturing overhead occurs during the manufacturing process but unlike wages, the actual values are unknow thus, we cannot anticipate in a guarantee amount. Hence, the cost accounting works as follows:
It will stablish a predetermined overhead rate which will be charged against WIP based on another factor which can be measure (like working hours, machine hours, among others)
Then, during the period as the actual cost occurs they will be charged into manufacturing overhead account.
At the end of the period, we will be able to determinate the actual cost and adjust COGS, WIP and FINISHED GOOD if needed to represent the actual cost of the inventory produced.
