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Ivan
3 years ago
9

In making adjusting entries at the end of its accounting period, chao consulting failed to record $3,700 of insurance coverage t

hat had expired. this $3,700 cost had been initially debited to the prepaid insurance account. the company also failed to record accrued salaries expense of $2,250. as a result of these two oversights, the financial statements for the reporting period will:
Business
1 answer:
Rama09 [41]3 years ago
3 0

It is given that the company failed to record $3,700 of insurance coverage that had expired and accrued salaries expense of $2,250. It means the company has failed to record the total expenses of (3700+2250) = $5,950. This understatement of the expenses shall result in an overstatement of the income in the Income statement. Further, it will also result in the overstatement of assets (Prepaid Insurance) by $3,700 and understatement of liabilities for salaries payable by $2,250.


As a result of these two oversights, the financial statements for the reporting period will show overstatement of the income by $5,950 in the Income statement and overstatement of assets (Prepaid Insurance) by $3,700 and understatement of liabilities for salaries payable by $2,250 in the balance sheet.



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Answer: Technically, Andrea Jung should be considered "responsible" for those payments although she's not aware of them.

Explanation:

Technically, Andrea Jung should be considered "responsible" for those payments although she's not aware of them.

To start with, the parents of Andrea Jung are citizens of China by birth and since birth have been in China, which makes us believe that Jung is very familiar with the business culture of China. Conclusively, she is very good at her job and has good credits in her marketing skills and international business skills.

She is aware that Avon being a direct selling business is against the Law in China since 1998, so it is reasonable to conclude that she's got a bias for the Chinese and culture probably based on some personal ties. And this definitely punctured her business ethics.

She is well aware of the failure of this market for Avon since Avon's products are illegal in China, but she insisted on this market penetration strategy. It is glaring therefore that Andrea Jung was determined and undetered to doing whatever it will take to increase their sales in China, even if the law of the country is broken.

For Avon products, Andrea Jung designed a Task Force in charge of "direct selling" in China (APC), and she was very much interested in it. Then, her personal involvment in Avon's goal in trying to convince the Chinese government to lift the direct selling ban became obvious as she engaged in some travels to China seeking the consent of top Chinese government personnels.

Therefore for her to say had no clue about the improper payments, she definitely was not unaware of the Chinese cultures and how bribery had become the usual thing. She was an 100% accomplice and was fully aware of all the transactions.

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4 0
3 years ago
3 Select the correct answer. Tracy applied for a home loan from her bank. The bank is willing to give her the loan but at a very
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Answer:

C. bad payment history

Explanation:

Creditworthiness is the term banks, and other lenders use to determine the risk associated with each customer. Credit score ratings place customers into different risk categories. A low credit score signifies a high-risk customer or low creditworthiness. Banks will extend credit facilities to a high-risk customer at a high-interest rate.

A customer with a poor loan repayment history has a low credit score. Tracy is being offered the loan at a high-interest rate due to her low creditworthiness. Her case would be different if she had a better credit score associated with a good loan repayment history.

8 0
3 years ago
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China is currently a socialist economic system. In view of china's explosive growth in supplying goods to the world China is becoming more of a market economic system.

Generally China is defined as a mixed economy market. But it is a planned  economy with most of the characteristics of the market economic system under the trend of the globalization.

For example: China government planned to focus on electric cars and thus the same china did and for the cars which were produced in China and sold in China only were provided with the government subsidy.

However China government also plans for those things which it does not want to see in the market such as stopping corporations inside trade on stocks.

To know more about market economic system here:

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8 0
1 year ago
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tekilochka [14]

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Based on the scenario being described within the question it can be said that Anita is evaluating the infrastructure component. This component refers to the analyzing all of the physical facilities and systems that will be needed for the business within a certain market. This includes distribution and communication channels as well as the warehouses and facilities for the business' operations.

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Variable cost refers to the costs of production that fluctuate depending on the number of units​ produced.

<h3><u>Explanation:</u></h3>

The cost of any product that changes based on the quantity of goods that are produced. The volume that is produced decides the fluctuations in the variable cost. Fixed cost is the cost that will not change based on the number of units of the goods that is produced. Rent of a building can be considered as a fixed cost.

Example for variable cost may be raw materials cost, packaging cost,etc. Variable cost can be calculated by adding up the cost of labor and raw materials that are used in the production of one unit of a good. The total variable cost can be calculated by multiplying   variable cost per unit with the number of units produced.

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