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3 years ago

Which of the following is a disadvantage of barter as a countertrade arrangement?

Business

1 answer:

Wittaler [7]3 years ago

5 0

Answer:

(C). Firms engaged in barter run the risk of having to accept goods they do not want or cannot use.

Explanation:

Countertrade is a trade system in which goods and services are exchanged for other goods and services.

Barter is a type of countertrade where money isn't involved. Only goods and services are exchanged between participating parties.

A disadvantage of barter is that, in the absence of required goods, a firm may have to accept the goods the other firm is offering even though it doesn't need or cannot use those goods at that point in time. The firm could resell the goods later.

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The budget director for Kanosh Cleaning Services prepared the following list of expected selling and administrative expenses. Al

Harrizon [31]

Answer:

Kanosh Cleaning Services

a. Schedule of Cash Payments for S&A Expenses

October November December

Equipment lease expense $7,500 $7,500 $7,500

Prior month’s salary expense, 100% 0 8,200 8,700

Cleaning supplies 2,800 2,730 3,066

Insurance premium 7,200 0 0

Depreciation on computer 0 0 0

Rent 1,700 1,700 1,700

Miscellaneous expenses 700 700 700

Total disbursements for operating expenses $19,900 $20,830 $21,666

b. Salaries payable = $9,000

c. Prepaid insurance = $3,600

Explanation:

a) Data and Calculations:

October November December

Budgeted S&A Expenses

Equipment lease expense $7,500 $7,500 $7,500

Salary expense 8,200 8,700 9,000

Cleaning supplies 2,800 2,730 3,066

Insurance expense 1,200 1,200 1,200

Depreciation on computer 1,800 1,800 1,800

Rent 1,700 1,700 1,700

Miscellaneous expenses 700 700 700

Total operating expenses $23,900 $24,330 $24,966

Schedule of Cash Payments for S&A Expenses

October November December

Equipment lease expense $7,500 $7,500 $7,500

Prior month’s salary expense, 100% 0 8,200 8,700

Cleaning supplies 2,800 2,730 3,066

Insurance premium 7,200 0 0

Depreciation on computer 0 0 0

Rent 1,700 1,700 1,700

Miscellaneous expenses 700 700 700

Total disbursements for operating expenses $19,900 $20,830 $21,666

b. Salaries payable = $9,000

c. Prepaid insurance = $3,600 ($7,200 - $3,600)

6 0

3 years ago

Calculating Net Cash Flow from Operating Activities (Indirect Method) Lincoln Company owns no plant assets and reported the foll

qwelly [4]

Answer:

(a) Net Cash flow from operating activities = 115,000

(b) Net Cash flow from operating activities (NCOA) to current liabilities (CL) :

Current liabilities = 22000+9000 = 31000

NCOA to CL = 115,000/31000 = 3.71

Explanation:

Income Statement

Sales 750,000

Cost of Goods sold (470,000)

Gross profit 280,000

Wages expenses (110,000)

Rent expenses (42,000)

Insurance expenses (15,000)

Net Income 113,000

Cash flow Statement

Net Income 113,000

Cash flow from operating activities :

Increase in Receivables (54,000-49,000) (5,000)

Decrease in Inventories (66,000-60,000) 6,000

Increase in prepaid Insurance (8000-7000) (1000)

Increase in Accounts Payable (22000-18000) 4000

Decrease in wages payable (11000-9000) (2000)

Net increase in cash flow from Operating activities 115,000

5 0

4 years ago

A business owner makes 60 items by hand in 45 hours. She could have earned $35 an hour working for someone else. Her total expli

Nezavi [6.7K]

The Answer Is : $-720

8 0

3 years ago

Suppose the reserve requirement is 5%. What is the effect on total checkable deposits in the economy if bank reserves increase

madam [21]

Answer:

D. $1 comma 000 billion increase

Explanation:

The reserve requirement ratio determines the total amount of checkable deposits a bank must keep.

In this case the reserve ratio it's 5%, which means that the total amount of deposits cannot exceed an amount equal to 20 times its reserves.

If the reserves increase by $50 billion then $50/0,05 = 1.000 billion increase.

5 0

3 years ago

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to

Vlada [557]

Answer:

See explanation Section

Explanation:

Adjusting Entries

Req. A, B

A. Since the partial amount of insurance policy has been expired-

Debit Insurance Expense $3,203

Credit Prepaid Insurance $3,203

An expense will be appeared and the current assets will be decreased.

B. Debit Teaching supplies Expense $7,528

Credit Teaching supplies $7,528

As the company has $2,776 supplies available from $10,304, teaching supplies expense will appear as $7,528 = (10,304 - 2,776)

Req. C, D, and E

C. Debit Depreciation expense-equipment $12,814

Credit Accumulated depreciation-equipment $12,814

D. Debit Depreciation expense-professional library $6,407

Credit Accumulated depreciation-professional library $6,407

E. Debit Unearned revenue $5,600

Credit Service revenue $5,600

Note: Monthly fee of $2,800 from November to December. Therefore, 2 months fee = $2,800*2 = $5,600 has been earned.

Req. F, G and H

F. Debit Accounts receivable $8,750

Credit Service revenue $8,750

Note: As WTI has not yet received any payment from October 15 to December 31, there will be 2 and a half months bill due. Each month = 3,500. Therefore, 2 months = $7,000, and a half-month = $(3,500 ÷ 2) = $1,750. Total receivable = $7,000 + $1,750 = $8,750.

G. Debit Salaries expense $400

Credit Salaries payable $400

Note: As there are two employees and two days salary have been accured, total salaries payable = $100 per day × 2 employees × 2 days = $400

H. Debit Rent Expense $2,062

Credit Prepaid rent $2,062

7 0

4 years ago