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kari74 [83]
3 years ago
9

During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. The financial statement effect of

these purchase transactions would be to: A. Increase liabilities (Accounts payable) by $337.8 million B. Decrease cash by $337.8 million C. Increase expenses (Cost of goods sold) by $337.8 million D. Decrease noncash assets (Inventory) by $337.8 million E. Both A and D
Business
1 answer:
iren2701 [21]3 years ago
6 0

Answer:

A. Increase liabilities (Accounts payable) by $337.8 million

Explanation:

The journal​ entry will be: Inventory (Credit - Increased) 337,860,000 and Accounts payable (Debit - Increased) 337,860,000.

The company must recognize the increase in the Inventory and the medium of payment (Accounts payable).

B is false because this operationn can also be a decrease in cash, but the amount in the operation is too high for this payment medium.

C is false because, the inventory is not sold, and COSG will be increased when the goods are sold.

D is also false because the inventory is increasing, not decreasing.

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Individuals in the group judged to be high in warmth and competence viewed by participants in relation to themselves as an in-group.

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An out-group is a group that is distinguished from an in-group by its dissimilarity. Where an in-group is defined by the presence of a shared element of identity, such as a belief or a trait, and an out-group is defined by the absence of that shared element.

Learn more about in-groups and out-groups here:

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2 years ago
In order to understand to concept of information security, the concept of threat, vulnerability, & control. please provide y
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3 years ago
The production manager decides that the primary part in production must be an "A" standard part, and "B" parts, although less ex
9966 [12]

Answer:

<u>Operational decision</u>

Explanation:

Remember, management takes several decisions which could be;

Group decisions,

Strategic policy, and

Operational decisions etc.

However, operational decisions are taken <em>usually by Top Management such as the production manager </em>in this scenario concerning issues that have a long time effect on the organisation's operational efficiency.

One such issues is the manner in which production is carried out.

8 0
3 years ago
John buys an investment for $100,000 at the beginning of the year. During the year, John receives $10,000 from his investment. A
ladessa [460]

Answer:

10%

Explanation:

The computation of the rate of return during the year is shown below:

Rate of return = (End year investment price - beginning year investment price + additional investment received) ÷ (beginning year investment price)

= ($120,000 - $100,000 + $10,000) ÷ $100,000

= $10,000 ÷ $100,000

= 10%

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4 0
4 years ago
Wisconsin Company uses the periodic inventory system. Sales for 2016 were $1,880,000 while operating expenses were $700,000. Beg
stiks02 [169]

Answer: $360,000

Explanation:

To solve the question, we needed to calculate the cost of goods sold first. This will be:

= Beginning Inventory + Purchases - Ending Inventory

= $280,000 + ($720,000 - $60,000) + $240,000

= $280,000 + $780,000 + $240,000

= $820,000

The net income or net loss will then be:

Sales = $1,880,000

Less: Cost of goods sold = $820,000

Gross profit = $1,060,000

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Net income = $360,000

The net income is $360,000

4 0
3 years ago
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