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damaskus [11]
2 years ago
8

A law firm received $2,000 cash for legal services to be rendered in the future. The full amount was credited to the liability a

ccount Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause: a. expenses to be overstated. b. net income to be overstated. c. liabilities to be understated. d. revenues to be understated.
Business
1 answer:
Elodia [21]2 years ago
5 0

Answer:  d. revenues to be understated.

If the services have been rendered but the revenue is not recorded it means that your accounts will show less revenue than you have actually earned as in accounting revenue is recognized as soon as the service is rendered, thus not recognizing the revenue when the service is rendered will understate the revenues.

Explanation:

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I think the correct term to fill in the blank would be mix. A product mix is the all of the products or services lines being offered by a company. The cars, trucks, financing services and the like are all product lines that make up the product mix of Volvo.
8 0
3 years ago
Which of the following statements is CORRECT? a. Because most stock ownership is concentrated in the hands of a relatively small
lbvjy [14]

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d. The potential exists for agency conflicts between stockholders and managers.

Explanation:

  • A problem of the agency is a conflict of the interest of relationships where one party is expected to act in another best interest and usually refers to the conflicts of the interest between the companies management and the stockholders.
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3 years ago
A depositor places $10,000 in cash in a commercial bank, where the required reserve ratio is 10 percent. The bank sends the $10,
garik1379 [7]

Answer:

C) $10,000, $1,000, and $9,000, respectively.

  • actual reserves increase by $10,000
  • required reserves increase by $1,000
  • excess reserves increase by $9,000

Explanation:

the money deposited by the client = $10,000

bank's reserve ratio is 10% = $10,000 x 10% = $1,000

since the bank kept the whole $10,000 as reserves, then:

  • actual reserves increase by $10,000
  • required reserves increase by $1,000
  • excess reserves increase by $9,000

The bank is only required to keep $1,000 in reserves, this means it can borrow the remaining $9,000 whenever they want.

7 0
3 years ago
Cash Flows from Operating Activities—Indirect Method The net income reported on the income statement for the current year was $1
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Answer:

Explanation:

26262

8 0
3 years ago
Parton Company, a manufacturer of snowmobiles, is operating at 80% of plant capacity. Parton's plant manager is considering maki
ira [324]

Answer:

The answer is: a

Explanation:

The Parton Company has a 'make or buy' decision. This decision involves analysing the incremental costs associated with each option. Incremental costs are costs incurred as a result of producing one more unit of a product. If the excess capacity can be utilised to produce the headlights at a lower cost than the cost of acquiring the headlights from an external supplier, then the company should produce the headlights.  

The Parton Company incurs $12.80 per headlight purchased from the external supplier. Added to this cost, are the existing costs of operating below plant capacity. If making the headlights in the manufacturing plant yields a positive contribution to fixed costs, then the Parton company should produce the headlights in the manufacturing plant.

By producing the headlights, the Parton company gains a contribution to fixed costs of $1.03 per headlight.

Foregone purchase costs from supplier:                          $12.80

Incurred costs (directly) from production:                        ($11.77)

Direct materials                                                                     ($4.45)

Direct Labour                                                                         ($3.45)

Manufacturing Overheads: $(6.45*0.6)                               <u>($3.87)</u>

Net gain per headlight                                                           <u> </u><u>$1.03</u>

6 0
3 years ago
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