Calculation of amount of prepaid insurance and insurance expense shown on the year 2 financial statements;
It is given that on June 1 of year 1 the company paid $1,800 cash for an insurance policy for one year.
Hence the insurance expense for the first year shall be calculated for 7 months (June to December) = 1800*7/12 = $1050. The balance in the prepaid instance as on December 31 of the first year shall be (1800-1050) = $750
In the second year the insurance expense shall be $750 and at the end of the second year, the balance in the prepaid insurance shall be nil.
Answer:
Under FIFO the ending inventory will be $110
Explanation:
The FIFO or the first in first out method of inventory valuation assumes that the units that are purchased or bought in first are the ones to be sold first and the ending inventory will include inventory purchased recently.
The sale made on March 11 will include:
20 units at $2 from March 1 = $40
5 units at $3 from March 7 = $15
Thus the ending inventory will be formed by:
(15-5) units at $3 from March 7 = $30
20 units at $4 from March 12 = $80
Total value of ending inventory = 30+80 = $110
Answer: A sustained, long-term slow down in economic growth is called. Secular Stagnation.
Explanation:
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Answer:
Disclosure of plans and projections to secure loans.
Explanation:
Essentially, businesses present plans of ideas in proposal so as to secure loans from both financial and nonfinancial institution. such businesses are at risk to lose business ideas to individuals who come across this document if the business idea is not protected by law.
This may also lead to legal procedures too early which may stifle the funds of the organization.
Answer:
The answer is: Establish responsibilities.
Explanation:
Establishment of responsibility refers to a very basic characteristic of internal control, an employee is responsible for the task he is assigned to do.
For example, who is responsible for any money missing in the cash register? If both cashiers share the same cash register, how can you assign responsibilities.
