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3 years ago

12

When rebuilding a steering system, a can of bolts and nuts was somehow lost. Technician A says to simply go to the hardware stor

e and buy the same size fasteners. Technician B says to order the fasteners from the manufacturer. Who is correct?

1 answer:

IceJOKER [234]3 years ago

6 0

I would say Technician B because if you replace the fasteners with lower grade ones, they can breaks easily.

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Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an in

kramer

Answer:

Allison should record the purchase at $5880

Explanation:

The net method for recording purchases implies that the purchases is recorded net of the envisaged cash discount on the transaction since the purchaser believes they would settle their account before the cash discount period expires.

Based on the above, the purchases would be recorded as shown below:

cost of purchase=original purchase value*(100%-discount rate)

original purchase price is $6,000

discount rate is 2%

cost of purchase=$6000*(100%-2%)

=$6000*98%

=$5880

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2 years ago

The more illiquid something is the easier it is to turn into cash.<br><br> true or false?

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Answer:

False

Explanation:

Illiquidity in the context of a business refers to a company that does not have the cash flows necessary to make its required debt payments, although it does not mean the company is without assets.

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3 years ago

Which of the following line items will appear on the income statement of a merchandiser but not of a service company?A. Supplie

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Answer:

D. Cost of Goods Sold

Explanation:

The cost of goods sold or simply COGS is a numerical representation of the direct expenses incurred in manufacturing products sold to customers in a period. It is the aggregate of direct labor, direct materials, and overheads used in the production process. COGS apply to manufacturing firms and companies that handle physical goods.

The COGS is deducted from the sales revenue to give the gross profit. Calculating the COGS involves adding the purchases or goods manufactured to the beginning inventory. Ending inventory is deducted from the total to provide the COGS. As per the formula, the COGS does not apply to the service industry.

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3 years ago

Plummer Industries purchased a machine for $43,800 and is depreciating it with the straight-line method over a life of 8 years,

tensa zangetsu [6.8K]

Answer:

$2,580

Explanation:

Depreciation = (Cost - Residual Value)/ Useful life

Yearly depreciation = ($43-800 - $3000)/8 = $5100

At the end of Year 5, total depreciation would be = $5100 X 5 = $25,500

Net book value at the end of year 5 = $43,800 - $25,500 = $18,300

Year 6, the extra ordinary repair that extended the useful life would be capitalized. Book value = $18,300 + $7,500 = $25,800

As 5 years have been expended, the remaining useful life would be 15-5 = 10 years

Depreciation expense year 6 = $25,800/10 = $2,580

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3 years ago

A classified balance sheet can be described as a balance sheet that: (Check all that apply.) Multiple select question. is more u

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Answer: 1) organizes assets and liabilities into important subgroups 2) is more useful to decision makers 3) lists current assets in order of how quickly they can be converted to cash

Explanation: see image

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2 years ago