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3 years ago

Which organizational forms give their owners limited liability?

1 answer:

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Based on ownership there are different forms of organizational units, these includes sole proprietorship, partnership or companies. Limited partnership is a form of business unit where partners join together to form a business organization, with one or more partners liable to the assets of the partnership. Limited partnership unlike general partnership gives owners limited liability where the partnership has at least one general partner and at least one limited partner.

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Solvency refers to: A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay

Papessa [141]

Answer:

A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due.

Explanation:

Solvency is defined as the long-term ability of a business the generate enough cash flow that will allow it to continue its operations and also to pay of its debt when due.

It is used as a measure of the financial health of the business.

A business with good solvency has a high probability of remaining in operation for the foreseeable future.

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3 years ago

Raj is a 50% shareholder in an S corporation. In the current year, he is reporting $50,000 of salary, $2,000 of interest income,

ycow [4]

Answer:

B) $4,000

Explanation:

The computation is shown below

As the QBI deduction can be less of

20% of Qualified business income

20% of net capital gain

So the 20% of qualified business income is

= $20,000 × 20%

= $4,000

And, the 20% of Net capital gain is

= ($65,000 - $10,000) × 20%

= $11,000

So, the lesser amount between $4,000 and $11,000 is $4,000

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3 years ago

An agreement where one firm provides managerial assistance, technical expertise, or other specialized services for an agreed amo

ad-work [718]

Answer:

Strategic Partnership

Explanation:

This is a arrangement where two or more companies come together under contractual agreement to work as one in other to achieve a goal or deliver a project, for the benefit of both parties.

In most cases one of the parties has a project to execute but lacks the resources to adequately execute it and as a result needs support from one or two more partners. They more or less become a joint venture for an agreed upon length of time.

8 0

3 years ago

Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual in

babymother [125]

Answer:

The Journal entries are as follows:

(a) On November 5,

Merchandise inventory A/c Dr. $6,000

To Accounts payable $6,000

(To record the purchasing of Merchandise inventory)

(b) On November 7,

Accounts payable A/c Dr. $250

To Merchandise inventory $250

(To record the returned units)

Accounts payable A/c Dr. $5,750

To cash $5,635

To Merchandise inventory $115

Workings:

Final amount due:

= Cost of goods purchased - Cost of goods returned

= 6,000 - 250

= $5,750

Discount amount:

= Final amount due × Discount percentage

= 5,750 × 2/100

= $115

Cash payment to be made:

= Final amount due - Discount amount

= 5,750 - 115

= $5,635

3 0

3 years ago

Read 2 more answers

$80,000 in raw materials were purchased on account. $78,000 in raw materials were used in production. Of this amount, $68,000 wa

Thepotemich [5.8K]

Answer:

Explanation:

The journal entries are shown below:

1. Raw material A/c Dr $78,000

To Accounts payable A/c $78,000

(Being raw material purchased)

2. Work in progress A/c Dr $68,000

Manufacturing overhead A/c Dr $10,000

To Raw material A/c $78,000

(Being raw material allocated)

3. Labor wages A/c Dr $126,500

To Cash A/c $126,500

(Being labor wages are paid in cash)

4. Work in progress A/c Dr $104,200

Manufacturing overhead A/c Dr $22,300

To Labor wages payable A/c $126,500

(Being labor wages are allocated)

5. Depreciation A/c $194,000

To Factory Equipment $194,000

(Being depreciation is charged on factory equipment)

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3 years ago