All categories

3 years ago

Which of the following statements is false?

1 answer:

8 0

Answer: d. A company paid for an insurance premium of $6,000 on January 1. The insurance is for a year. Failing to make adjustments for the month of January would overstate assets and stockholder's equity by $6,000.

Explanation:

If a company were to pay $6,000 for Insurance for the YEAR in January, this would be recorded as a PREPAID EXPENSE.

This Prepaid Expense will then be apportioned per month over the year to each month as expenses of $500.

Failing to make adjustments for the month of January would not overstate assets and stockholder's equity by $6,000 but by $500.

You might be interested in

ABC Corporation reports the following information:

Tpy6a [65]

Answer:

$480,000

Explanation:

Data provided as per the question below:-

Net income = $380,000

Depreciation = $70,000

Decrease in accounts receivable = $30,000

The computation of cash provided by operating activities is shown below:-

= Net income + Depreciation + Decrease in accounts receivable

= $380,000 + $70,000 + $30,000

= $480,000

Therefore we applied the above formula.

7 0

3 years ago

ABC Lumber spent $1,000 cutting down a tree. The result was 40 unfinished logs that sell for $20 each and 100 bags of sawdust th

CaHeK987 [17]

Answer: below

Explanation:

- The sawdust should be sold as is without being processed into Presto

Logs.

- The pieces of unfinished lumber should be processed

8 0

3 years ago

Dakota Company had net sales (at retail) of $260,000.

disa [49]

Answer:

$35,860

Explanation:

The computation of the ending inventory using the retail inventory method is shown below

Particulars Cost Retail

Opening Inventory(A) $63,800 $128,400

Purchases(B) $115,060 $196,800

Goods available

C=(A-B) $178,860 $325,200

Cost ratio

($178,860 ÷ $325,200 × 100) 55%

Sales at retail (D) $260,000

End, Inventory at Retail $65,200

($325,200 - $260,000)

End, Inventory at Cost $35,860

($65,200 × 55%)

8 0

3 years ago

Which of these individuals is an entreneur ?

wlad13 [49]

Answer:

A. a computer programmer who starts her own software Company

Explanation:

Entrepreneurship is the process through which new businesses are started. An entrepreneur is a person who takes risks by committing their time and resources to start a business.

The computer programmer is the entrepreneur in this case. She is starting a new software business. Other than her computer skills, she will need to be creative and innovate to develop products that will appeal to customers. She will take all risks of her new business but also stand to enjoy its success.

7 0

3 years ago

A company uses the declining-balance method of calculating depreciation expense.On January 1, the company buys machinery for $75

elixir [45]

Answer:

Book value for the 3rd year = $ 750,000 - $366,000 = $ 384,000

Explanation:

Straight line rate= 100 % ÷ Useful Life = 100 ÷ 10= 10 %

Double Declining rate = 2 * Straight Line rate= 2 * 10= 20 %

Depreciation expense= Double declining balance rate * Beginning period book value

Depreciation expense for the first year = 20 % $ 750,000= $ 150,000

Book value for the first year = $ 750,000 - $ 150,000= $ 600,000

Depreciation expense for the 2nd year = 20 % $ 600,000= $ 120,000

Book value for the 2nd year = $ 750,000 - $ 270,000= $ 480,000

Depreciation expense for the 3rd year = 20 % $ 480,000= $ 96,000

Book value for the 3rd year = $ 750,000 - $366,000 = $ 384,000

5 0

3 years ago