Answer:
Ace records the purchase:
Inventory 3,700 Accounts payable 3,700
Explanation:
Ace Bonding Company purchased merchandise inventory on account. The inventory costs $3,700.
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. At that time of purchasing, the company has not sold the merchandise yet. The entry records the purchase:
Debit Inventory $3,700
Credit Accounts payable $3,700
An operating activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business.
A business operates through certain actions that manage and keep the business alive. Such operating activities may include more than a couple of processes that help the business stay afloat.
- The operating activities of a business include all the things that a company does to provide an ongoing flow of products and services to the market.
- Such activities may include setting a strategy, keeping accounts of the transactions like purchasing of merchandise, the sale of goods and services to customers, and the expenditures incurred to operate the business.
- Operating activities are important as they control the cash flow of the business and maybe the sole source of ensuring the business stays alive.
- It is directly linked to the deep-end workings of the company, like the production, sale, distribution, etc. of the company.
Thus, operating activities such as the determination of the incomes, purchase of merchandise, sale of goods and services, etc. all play a huge part in the successful running of the company. It's actions such as these that determine the success or failure of the company.
Learn more about cash flow activities here:
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I think that the answer is D all of the above
Answer:
a. $6,400.
Explanation:
In solving this question on Computing the amount of Purchasing department expense to be allocated to Assembly, we'll have to use the formula below:
Purchasing department expense to be allocated to Fabrication = Total Cost of purchasing department X number of purchase order in / Total numbers of purchase orders in all operating departments
= $32000 X 4/20 = $6,400