Answer:
a. Cash payment (or an obligation to pay cash) occurs before the expense recognition.
Explanation:
Prepayments are amounts paid to a business before goods or services are received. This means that a prepayment is the payment of an obligation, bill, or expense before its due date, which is therefore, also before the expense recognition.
The correct answer is alternative a. Cash payment (or an obligation to pay cash) occurs before the expense recognition.
Answer:
Dr Interest Expense account 10,000
Cr Cash account 10,000
Explanation:
We have to calculate how much interest did the company paid = $100,000 x 10/12 x 12% = $10,000
Then we must record the journal entries
- Dr Interest Expense account 10,000
- Cr Cash account 10,000
Since cash is an asset and it decreases, then it should be credited.
Since interest is an expense and it increases, it should be debited.
Answer:
the gross profit of XYZ is $294,000
Explanation:
The computation of the gross profit is shown below:
= Revenue - cost of goods sold
= $485,000 - ($38,000 + $186,000 - $33,000)
= $485,000 - $191,000
= $294,000
Hence, the gross profit of XYZ is $294,000
The above formula should be used for the same
The fast burger is not an example of mechanistic
organization, therefore, it is false. It is because a mechanistic organization
should provide rules and tasks that are provided to each employee and the authority
should be centralized—in the given scenario, the mechanistic organization is
not seen above.
Answer:
The correct answer is option D.
Explanation:
External economies of scale can be defined as the situation when the average cost of production is reduced due to growth of industry as a whole. It can also be referred as the external benefit of expansion of the industry.
It is generally associated with a perfectly competitive industry. While internal economies of scale is generally associated with imperfectly competitive markets.
