Answer: Actual overhead costs always enter the Work-in-Process account.
Explanation:
The work-in-process account is an account where the value of goods yet to be completely produced are recorded while the overhead cost is simply a business running cost, that is cost on expenses the business makes to keep functioning.
Overhead cost is not recorded in work-in-process account, rather it is recorded as business expenses.
Answer:
C. the price effect would become a more significant consideration for each firm that makes automobiles.
Explanation:
The situation above is highly related to the topic about "supply" and "demand." If the nations of <em>Germany</em>,<em> Japan</em> and <em>the U.S.A</em>. prohibits the international trade in automobiles, this will result to a<u> surplus of automobile goods within the country.</u> Since these automobiles were meant to be sold abroad, the prohibition will<em> lower its international demand.</em> Such increase in supply will have a significant effect on the price of the automobiles. This is the reason why each firm should have to consider the situation's effect on the price of the automobiles and related goods.
So, this explains the answer.
Answer:
Statement 1: Explicit cost
Statement 2: Implicit cost
Statement 3: Implicit cost
Statement 4: Explicit cost
Accounting profit = Sales revenue - Explicit cost
= 722,000 - (422,000 + 268,000)
= $32,000
Economic profit = Sales revenue - (Explicit cost + Implicit cost)
= 722,000 - (422,000 + 268,000 + 2,000 + 21,000)
= $9,000
Answer:
Correct option is C
Explanation:
Total E&P = $ 160000
Total voting Right Sold = 50/ (100+100) = 25%
Reduction of E& P due to exchange = Total E&P*Total voting Right Sold
Reduction of E& P due to exchange = 160000*25%
Reduction of E& P due to exchange = 40000
Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised
Reduction of E& P Lower of 40000 or (50*1000)
Reduction of E& P Lower of 40000 or 50000
Answer
C. A reduction of $40,000 in E&P because of the exchange.
Answer: a. Allow management to conserve cash, give stockholders more shares, and cause no change in total assets, liabilities, or stockholders' equity.
Explanation:
Stock Splits increase the number of shares a company without actually changing their market capitalization by simply dividing the shares available.
There are a bunch of reasons to do this but one of them is to conserve cash. By splitting stock, managers can conserve cash by not paying dividends but still proving that the company can still pay dividends. The Shareholders getting MORE stock would be the reward.
Since Stock splits don't change the Market Capitalization, they don't have an effect on Equity either and by extension Assets and Liabilities.
