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3 years ago

Why should companies be careful to report cash and cash equivalents correctly?

1 answer:

5 0

<span>Companies should be careful to report cash and cash equivalents correctly because this is there responsibility. Companies must be prepared for random audits by the IRS and must show these records and calculations when the need arises. This will save a lot of money from penalties and other fees that may be owed to the IRS and can update the IRS of any incorrect calculations they may have.</span>

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If the inflation rate averages 3 percent over the next 8 years, the expected cost of services for any year in that time frame is

lys-0071 [83]

Answer:

The expected cost 8 years from now = $13.87

Explanation:

If the inflation rate averages 3 percent yearly over the next 8 years, the expected cost of services for any year in that time frame is given by

C (x) = K (1.03)ˣ

where

K = present cost = $10.95

x = time in years = 8

So, the expected cost of a haircut 8 years from now would be

C(x=8) = 10.95 (1.03)⁸ = $13.87

Hope this Helps!!!!

4 0

3 years ago

Chang Industries has 2,500 defective units of product that have already cost $14.50 each to produce. A salvage company will purc

Lubov Fominskaja [6]

Answer:

$27,250

Explanation:

The computation of incremental income or loss on reworking the units is shown below:-

For computing the incremental income or loss on reworking the units first we need to follow some steps which is shown below:-

Incremental revenue per unit = Selling price after rework - Selling price as scrap

= $22.00 - $5.60

= $16.40

Total Incremental Revenue = Incremental revenue per unit × Total defective units

= $16.40 × 2,500

= $41,000

Total rework costs = Total defective units × Defects per unit

= 2,500 × $5.50

= $13,750

Now,

Incremental income or loss on reworking the units = Total Incremental Revenue - Total rework costs

= $41,000 - $13,750

= $27,250

7 0

3 years ago

on august 1, paid $72,000 cash to purchase houtte's 9%, six-month debt securities ($72,000 principal), dated august 1.

Kitty [74]

Here short term investment is debited as it increased the asset and credited the cash as decreased the asset.

here cash is debited as it increased the asset and credited the interest revenue as it also increased the revenue.

What Are Short-Term Investments?

Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
After only three to twelve months, many short-term investments are sold or turned into cash. CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills are a few typical examples of short-term investments.
Short-term investments, also known as marketable securities or temporary investments, are financial investments that can be easily converted to cash, typically within 5 years.
Typically, these investments are high-quality and highly liquid assets or investment vehicles.
Short-term investments may also specifically refer to financial assets of a similar kind, but with a few additional requirements, that are owned by a company.

To know more about Short-term investment visit:

6 0

2 years ago

The relationship between quantity supplied and price is ________ and the relationship between quantity demanded and price is ___

mart [117]

Answer:

direct, inverse

Explanation:

Hope it helps

4 0

2 years ago

Activity-based costing uses Group of answer choices departmental pools and a single cost driver. numerous cost pools and numerou

avanturin [10]

Answer:

numerous cost pools and numerous cost drivers.

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

In Financial accounting, a direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.

On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.

An activity-based costing (ABC) can be defined as a method of costing that identifies the numerous activities in a business firm and assigns the cost of each activity to their respective drivers based on their consumptions.

Activity-based costing (ABC) uses numerous cost pools and numerous cost drivers.

Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.

Cost pool is simply the amount of money spent by a firm on a particular activity.

In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;

Activity rate = total overhead cost/activity for the activity cost pool.

7 0

3 years ago