Answer:
In a job order cost system, it would be correct in recording the purchase of raw materials to debit
Raw Materials Inventory.
Explanation:
When materials are initially purchased, the cost is debited to the Raw materials inventory account and credited to either Cash or Accounts Payable, depending on the trade terms. When the materials are assigned to work in process, it is debited to Work in Process Inventory and to Jobs and credited to Raw materials Inventory. Finished Goods Inventory is only debited for completed jobs. Manufacturing Overhead is debited for all indirect costs.
Answer: vertical analysis
Explanation:
Vertical analysis is when each item on a financial statement is compared with a total amount from the same statement.
Vertical analysis refers to a financial statement analysis method whereby each line item in a statement is listed as a percentage of the base figure. In such case, each amount in the income statement will then be restated as a percentage of sales.
Answer:
1. Issuance of bonds
Cash-flow classification: Financing activity
2. Sale of equipment
Cash-flow classification: Investing activity
3. Amortization expense
Cash-flow classification: Operating activity
4. Purchase of treasury stock
Cash-flow classification: Financing activity
5. Receipt of dividends on investment
Cash-flow classification: Operating activity
6. Purchase of land
Cash-flow classification: Investing activity
This question is incomplete because the options are missing; here is the complete question:
A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation is known as:
A. Joint venture.
B. Licensing.
C. Countertrade.
D. Strategic alliance.
E. Export-import agent.
The correct answer is B. Licensing
Explanation:
In businesses, licensing refers to a type of agreement between two companies or firms that involves one of the firms is allowed to use the brand, model, and other business elements of the other firm. This often involves the firm can produce the product of the other firm for a time. Moreover, in compensation, the firm whose product is being produced receives money or any other benefit. This type of agreement is often beneficial for the two firms involved because the firm sharing its model and product can expand its popularity, while the other firm can obtain profits. This agreement is the one described because only in this one firm permits another to use its brand and produce its product.
Answer:
=$434
Explanation:
FUTA and SUTA tax rate are applied to the first $7,000 of an employee's pay. Here the employee earned $8,900 but we will only tax the $7,000 due to the pre-condition of taxing the initial $7,000 amount.
FUTA tax rate = 0.8%
SUTA tax rate = 5.4%
Taxable pay = $7,000
Payable Tax = 7000(0.8%) + 7000(5.4%)
= 56 + 378
=$434
The amount of total unemployment taxes the employer must pay on this employee's wages is $434.
