Teenage entrepreneurship is growing especially in the ____

Which of the following statements is not true for T accounts?

Sever21 [200]

Answer: The statement "d. The excess of the credits of an asset account over the debits is the balance of the account.". is <u>NOT TRUE.</u>

Explanation: The statement "d." is not true because according to the basic equity equation (ASSETS = LIABILITIES + EQUITY).

The excess of the debits of an asset account over the credits is the balance of the account and the excess of the credits of an owner's equity account or a liability account over the debits is the balance of the account.

5 0

3 years ago

In the Month of March, Digby Corporation received orders of 128 units at a price of $15.00 for their product Daze. Digby uses th

Montano1993 [528]

Answer:

$1,290

Explanation:

The revenue to be recognized in march is dependent on if the revenue recognition criteria was met in march. These criteria are

the cost of goods delivered or service rendered can be measured reliably
good/services were delivered/rendered in the month

This is irrespective of whether cash was collected or not under the accrual method.

Given that Digby delivers 86 units in March at a price of $15.00, revenue to be recognized

= 86 * $15

= $1,290

6 0

3 years ago

The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years,

shtirl [24]

Answer:

e) $37.05

Explanation:

Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.

So we discount the year 3 dividend using the dividend growth model formula

P = D (1+g)/r-g

r- rate of return, g = growth rate

Present value of the future dividends:

PV of Year 1 = 1.55(1.015)m × 1.12^(-1)

= 1.4047

PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)

= 1.27

PV of Year 3 (this will be done in two steps)

Step 1; PV (in yr 2) of year 3 dividend

= (1.55)(1.015)^2×(1.08)/(0.12-0.08)

=43.114

Step 2 : PV (in yr 2) of year 3 dividend

=43.114 × (1.12^(-2))

= 34.37

Best estimate of stock = 1.40 + 1.27 +34.37

= $37.05

Note

To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0

8 0

3 years ago

Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period, the two companies individua

bixtya [17]

a) With Lake's 60% controlling interest in Boxwood, the total income tax expense reported on a consolidated income statement for this period is $99,023 ($471,540 x 21%).

b) With Lake's 60% controlling interest in Boxwood, the total amount of income taxes payable for the current year is $101,400 ($363,000 + $120,000) x 21%.

c) With Lake's 90% controlling interest in Boxwood, the amount of income tax expense to be reported on the consolidated income statement for the year is $97,820 ($465,810 x 21%).

<h3>What is controlling interest?</h3>

Controlling interest exists when a company or an individual owns more than 50% of the shareholdings of another company. This gives the investor shareholder a majority voting share to influence decisions of the subsidiary company.

<h3>Data and Calculations:</h3>

Lake Boxwood

Income reported $363,000 $120,000

Dividend paid 60,000 5,000

Dividend income 3,000 ($5,000 x 60%)

Increase in intra-entity gross profits = $19,100 ($41,500 - $22,400).

Excludable intra-entity gross profits = $11,460 ($19,100 x 60%).

Consolidated Income = $471,540 ($363,000 + $120,000 - $11,460)

Excludable intra-entity gross profits = $17,190 ($19,100 x 90%).

Consolidated Income = $465,810 ($363,000 + $120,000 - $17,190)

Learn more about controlling interests at brainly.com/question/15415717

5 0

2 years ago

Suppose the government enacts a price floor on milk, which leads to a surplus in the market. How will the government then attemp

Anna [14]

Answer:

Price Floor led Excess Supply can be solved by : Preserving goods Buffer Stock ; or processing goods to increase their shelf life (in case of perishable goods like Milk)

Explanation:

Unregulated markets are at equilibrium where : market demand , market supply are equal ; and downward sloping demand curve , upward sloping supply curve intersect.

Price Floor is minimum mandated price set by government, below which a good can't be sold in the market. It is usually set above equilibrium price, to protect interest of sellers. Example : Minimum Support Price as minimum agricultural goods price to protect interest of farmers, Given Milk Price floor case.

Price Floor creates artificially higher prices ; so increases supply, decreases supply & hence creates Excess Supply. Government can solve this excess supply by preserving stock supply for contingent times , eg - maintaining buffer stock. If the good is of perishable nature, as given milk case : it should be processed further to increase its shelf life, eg - cheese, such that the stock supply can be released at a slower pace.

3 0

3 years ago

Teenage entrepreneurship is growing especially in the _____ industry