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UNO [17]
3 years ago
13

The adjusting entry to adjust supplies was omitted at the end of the year. This would affect the income statement by having expe

nses
a. overstated and therefore net income understated expenses
b. understated and therefore net income understated expenses
c. understated and therefore net income overstated revenues
d. understated and therefore net income understated
Business
2 answers:
creativ13 [48]3 years ago
5 0

Answer:

This would affect the income statement by having expenses

c. understated and therefore net income overstated revenues

Explanation:

Adjusting Entry:

It is such entry which is added at the end of the fiscal period in order to make the income statement accurate.

Overstated:

In Accounting, overstated amount means that amount is greater than the true amount.

Understated:

In Accounting, if an amount is less than the true amount then it is known as understated.

  • As in our case, the adjusting entry for supplies was not added so in this way expenses became understated means they become less as compared to actual expenses. Therefore, revenues overstated.

DanielleElmas [232]3 years ago
3 0

Answer:

c. understated and therefore net income overstated revenues

Explanation:

The p/l is a statement that shows the income and expenses of an organization.

The first element usually on the p/l is the revenue. Then is the cost of goods sold. The difference between these two is gross profit. Then the expenses are deducted while the other income are recognized to get the net income/loss.

As such, when entries to adjust supplies are omitted, an expense is omitted and is thus understated resulting in an overstatement of net income.

The right option is c. understated and therefore net income overstated revenues.

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erik [133]

Answer: $50,000

Explanation:

To calculate David's basis in S corporation we subtract the value of the land at it's current value from his basis in S corporation stock of $270,000 on the distribution date.

We will then add his portion of the capital gain on the land because all shareholders shared it equally and as such it should increase his basis as it did theirs.

Calculating then we have,

= 270,000 - 240,000 + 20,000

= $50,000

David's basis in the S corporation becomes $50,000.

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3 years ago
Stockholders' equity:________A. Is equal to assets minus liabilities B. Represents the interest of the owners in the assets of a
marshall27 [118]

Answer:

D. All of the above

Explanation:

Stockholder equity is also known as shareholders' equity.  The shareholder's equity is composed of their capital contribution plus the retained earnings.  In the balance sheet, the value of shareholder equity equals assets minus liabilities.

Stockholder equity is the amount that shareholders will receive if the assets of a company are to be liquidated after liabilities have been settled. It is the shareholder interest in the company.

5 0
2 years ago
"Clothing maker The Gap states that its purpose as an organization is to "create emotional connections with customers around the
alexdok [17]

Answer:

mission statement

Explanation:

Mission statement -

It is the statement about the organization , as why is the organization in existence , determining the goal of the operation , the type of product ans service that the organisation provides , find the overall goal and the primary market and customer , is known as the Mission statement .

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8 0
3 years ago
Please help me quickly
vazorg [7]

Answer:

6   515

Explanation:

7 0
3 years ago
Read 2 more answers
ABC Co. has 165 million shares outstanding and expects earnings at the end of this year of $2.05 billion. ABC plans to pay out 4
frosja888 [35]

Answer:

Share price = $85.684

Explanation:

It is given that  ,Ke = cost of equity = 15% ,g = Growth = 9.2%%  and Dividend and Repurchase = 40%

Now we know that

PV = CF /(Ke- g)

PV = $2.05 billion*0.4 / (0.15-0.092) = 0.84 billion /0.058

=$14137931034.483

Share price = $14137931034.483 / 165000000 million

Share price = $85.684

8 0
3 years ago
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