Answer:
Explanation:
Profit is the surplus revenue after a firm has paid all its costs. ... In a capitalist economy, profit plays an important role in creating incentives for business and entrepreneurs. For an incumbent firm, the reward of higher profit will encourage them to try and cut costs and develop new products
Answer:
b. 2018 net income is overstated by $750
Explanation:
As the ending inventory is overstated the COGS will be understated thus, the income was overstate as well. Because the expenses reduced from the sales revenues were lower than correct.
Also we can deduct the same logic considering the accounting equation
Assets = liab + equity
if asssets are 750 higher than it should, then Equiy is higher as well
+750 = +750
Equity is affected for the net income and dividends. Thus, we can also conclude the net income is overstated by 750
Answer:
$40,800
Explanation:
The computation of the net income is shown below:-
With regard to non-controlling interest, Lowell Corp. and the non-controlling interest divided Boston net profits proportionately to their ownership interests.
Non controlling interest share of consolidated net income = Boston net income × Remaining percentage
= $204,000 × (100% - 80%)
= $204,000 × 20%
= $40,800
Therefore for computing the Non controlling interest share of consolidated net income we simply multiply the Boston net income with remaining percentage.
Answer:
The write off of the account should include a debit to the allowance for uncollectible accounts, and a credit for bad debt expense:
Account Debit Credit
Bad Debt Expense $10,000
Allowance for Uncollectible
Accounts $10,000
This is because under the aging method, when an account is actually written-off, it must be charged against the bad debt expense that was forecasted or anticipated earlier.
