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3 years ago

Which of the following are criteria for determining whether to record an asset as a fixed asset?

Business

1 answer:

valentinak56 [21]3 years ago

8 0

Answer:

must be long lived and used by the company in its normal operations

Explanation:

An assets is something that will help the company to generate value.

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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance

Nikolay [14]

Answer:

Please see the detailed solution below:

Explanation:

Solution 1:

Average Operating Assets = (Beginning Operating Assets + Ending Operating Assets) / 2

Average Operating Assets = ($1,850,000 + $1,890,000) / 2

Average Operating Assets = $3,740,000 / 2

Average Operating Assets = $1,870,000

Solution 2:

Margin = Net Operating Income / Sales

Margin = $589,050 / $3,927,000

Margin = 0.15 i.e., 15%

Turnover = Sales / Average Operating Assets

Turnover = $3,927,000 / $1,870,000

Turnover = 2.1

Return on Investment = Margin x Turnover

Return on Investment = 15% x 2.1

Return on Investment = 31.5%

Solution 3:

Residual Income = Net Operating Income - (Minimum Required Rate of Return x Average Operating Assets)

Residual Income = $589,050 - (15% x $1,870,000)

Residual Income = $589,050 - $280,500

Residual Income = $308,550

8 0

3 years ago

Wants to start a fashion boutique that will sell tailor-made garments and accessories. She plans to open boutique stores in life

Akimi4 [234]

Answer:

commercial bank people will help her in that regard

5 0

3 years ago

The primary measure of a nation's level of development is its _____.

Veronika [31]

The answer is per capita gross domestic product. The per capita GDP is the one responsible for measuring the country’s total output in which they take their GDP and are being divided by how many are the people in their own country.

7 0

3 years ago

Which of these statements about cycle inventory is BEST? A. Cycle inventory exists to avoid customer service problems. B. Cycle

zavuch27 [327]

Answer:

<em>A. Cycle inventory exists to avoid customer service problems.</em>

Explanation:

Cycle inventory is the part of inventory kept by a supplier, that shows the amount of inventory available to satisfy demand. Cycle inventory allows the supplier to keep track of his available inventory so as to remove the problem of not meeting customers demand, which can led to loss of customers. And also to reduce the problem of over-storage that can lead to additional holding charge.

4 0

3 years ago

When preparing a merchandise purchases budget, the required purchases in units equals: Select one: a. budgeted unit sales + begi

miskamm [114]

Answer:

b. Budgeted unit sales - beginning merchandise inventory + desired merchandise ending inventory.

Explanation:

Since, the total purchases in units means the number of units that the company needs to buy after maintaining the necessary closing inventory to meet the budgeted sales. The total units required should therefore be equal to the total of the budgeted sales units and the units for the closing of inventory.

Also, if the opening inventory exists out of the total units required, then that number of merchandise does not need to be purchased as it already exists.

Therefore to reach the required purchase unit we need to add budgeted unit sales and desired merchandise ending inventory and deduct the beginning merchandise inventory.

So, the correct option is b.

8 0

3 years ago