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3 years ago

LO 1.2Which of the following statements is incorrect?

Business

1 answer:

Pachacha [2.7K]3 years ago

4 0

Answer: Reports produced using management accounting must follow GAAP.

Explanation: Management report are reports produced by management accountants are prepared for internal use by managers, employees and other officers.

Management reports are produced as at when required and do not necessarily have to follow GAAP.

Management reports include job costs, production cost report, cost of good manufactured report etc.

It gives monetary and non monetary information for management consumption.

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Journalize the following merchandise transactions. The company uses the perpetual inventory system.

aliya0001 [1]

Answer:

Accounts Receivable $17,300 (debit)

Cost of Goods Sold $12,600 (debit)

Sales Revenue $17,300 (credit)

Inventory $12,600 (credit)

Cash $15,916 (debit)

Accounts Receivable $15,916 (credit)

Explanation:

The Perpetual Inventory system records the cost of inventory after every sale.

a. Sale of Sold merchandise on account

Recognize the Revenue and Cost of Sale as follows :

Accounts Receivable $17,300 (debit)

Sales Revenue $17,300 (credit)

Cost of Sales $12,600 (debit)

Merchandise $12,600 (credit)

b.Received payment within the discount period

Recognize the Cash receipts to the extend of amount paid less cash discount of 2%

Cash $15,916 (debit)

Accounts Receivable $15,916 (credit)

Cash Receipt = $17,300 × 92% = $15,916

5 0

3 years ago

Select the correct answer.

ivolga24 [154]

First, the quotation for each car model has to be obtained. The quotation must include the taxes including insurance.Then, a comparison is done taking into account the mileage and the maximum allotted budget for the other expenses which is $800.

7 0

3 years ago

Dogz reports total revenue of $47,561, cost of goods sold of $32,856 and net receivables of $19,595. Their property, plant and e

natima [27]

Answer: ART

Explanation:

Account receivable turnover(ART) = Sales revenue/Average Account Receivable

= $47,561/$19,595

= 2.427

Inventory Turnover(INVT) = Cost of sales/Inventory

= $32856/$16240

= 2.023

Property Plant and Equipment Turnover(PPET) = Sales/Property Plant and Equipment

= $47561/$19813

= 2.400

Therefore, the ratio that is highest is the account receivable turnover

8 0

3 years ago

Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated

AnnyKZ [126]

Answer:

$15.34

Explanation:

The formula and the computation of the predetermined overhead rate is shown be

Predeterminer overhead rate = Manufacturing overhead ÷ direct labor hours

where,

Manufacturing overhead is

= $359,860 + $8,300

= $368,160

And, the direct labor hours is 24,000

So, the predetermined overhead rate is

= $368,160 ÷ 24,000

= $15.34

4 0

3 years ago

In order to determine net cash provided by operating activities, a company must convert net income from an accrual basis to a ca

vichka [17]

Answer:

C-both the direct method and the indirect method.

Explanation:

When you want to calculate net cash flows from operating activities, you only consider cash inflows and outflows. This means that changes in accounts receivable, inventories and other prepaid expenses must be adjusted, as well as accounts payable and any other non-cash expenses like depreciation or amortizations.

5 0

3 years ago