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3 years ago

In order to prepare a contribution format income statement, costs must be separated into: Multiple Choice

Business

1 answer:

scoray [572]3 years ago

4 0

Answer:

variable and fixed costs.

Explanation:

The format of the contribution margin income statement is presented below:

Sales XXXXX

Less: Variable cost (XXXXX)

Contribution margin XXXXX

Less: Fixed cost (XXXXX)

Net income or loss XXXXX

Based on this we can concluded that the contribution margin income statement classified into two cost i.e variable and fixed cost

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A company reports the amounts below in its financial statements. Net cash flow from operating activities $37,570 Total net cash

balandron [24]

Answer:

Ratio will be 0.92

So option (A) will be the correct option

Explanation:

We have given net cash flow from operating activities = $37570

So net operating cash flow = $37570

Current liabilities at the bugging of the year = $38400

Current liabilities at the end of the year = $43200

So average current liabilities $=\frac{38400+43200}{2}=$40800$

We have to find the ratio of operating cash flow to current liabilities

So ratio will be $=\frac{37570}{40800}=0.92$

So option (A) will be the correct option

3 0

3 years ago

Each of the following would increase the demand for U.S. dollars, shifting the demand curve for dollars to theright, except:

earnstyle [38]

Answer:

<h2>The answer to the given question would be option C. or an increase in the real interest rate on U.S. assets.</h2>

Explanation:

An increase in the real interest rate on US financial assets basically imply a higher financial cost of borrowings of these assets which would consequently reduce the demand for US assets among foreign investors or borrowers.
As the real interest rate on US assets goes up,the foreign investor have to pay more as interest on any borrowing of the US assets in US dollars.Therefore,the periodic interest payments in terms of US dollars also increases for the foreign or international financial investors which will eventually reduce the demand for US dollars in the foreign exchange market for US dollars.
As a result of such occurrence,the demand curve for US dollars would shift leftward or downward thereby reducing the currency value of US dollars relative to other foreign or international currencies.

6 0

3 years ago

One hypothesis for declining productivity growth rates since the Great Recession is that technological progress has been so rapi

Mice21 [21]

Answer:

False

Explanation:

history has documented that the Great Recession occurs between December 2007 to June of 2009. The recession lead to losses in countries such as the output went down and unemployment went up. The causes of the Great Recession are Rising Inequality, Loosening of bank lending rules and rise of mortgage securitization.

Technological advance is hand in hand with capital formation. Productivity growth rates is of utmost importance due to the fact that productivity growth rates have a big impact on future economic growth and development of the new economy was due to advances in information technology.

3 0

3 years ago

Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years

inessss [21]

Answer:

A. Year 1 $17,500

Year 2 $17,500

Year 3 $17,500

B. $322,500

C. Dr Cash $300,000

Dr Accumulated Depreciation-Equipment $52,500

Dr Loss on disposal of Equipment $22,500

Cr Equipment $375,000

D. Dr Cash $325,000

Dr Accumulated Depreciation-Equipment $52,500

Cr Equipment $375,000

Cr Gain on disposal of Equipment $2,500

Explanation:

A. Calculation to determine What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation

Year 1 Depreciation expense Year 1=($375,000-$25,000)/20 years

Year 1 Depreciation expense Year=$17,500

Year 2 Depreciation expense Year=($375,000-$25,000)/20 years

Year 2 Depreciation expense Year=$17,500

Year 3 Depreciation expense Year=($375,000-$25,000)/20 years

Year 3 Depreciation expense Year=$17,500

Therefore the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation is :

Year 1 $17,500

Year 2 $17,500

Year 3 $17,500

B. Calculation to determine What was the book value of the equipment on January 1 of Year 4

Book value of Equipment=[$375,000-($17,500*3)]

Book value of Equipment=[$375,000-$52,500)

Book value of Equipment=$322,500

Therefore the book value of the equipment on January 1 of Year 4 is $322,500

C. Preparation of the journal entry to record the sale.

Jan. 3

Dr Cash $300,000

Accumulated Depreciation-Equipment $52,500

($17,500*3)

Dr Loss on disposal of Equipment $22,500

($322,500-$300,000)

Cr Equipment $375,000

(To record sales)

D. Preparation of the journal entry to record the sale.

Jan. 3

Dr Cash $325,000

Dr Accumulated Depreciation-Equipment $52,500

($17,500*3)

Cr Equipment $375,000

Cr Gain on disposal of Equipment $2,500

($325,000+$52,500-$375,000)

(To record sales)

7 0

3 years ago

Why do neoclassical economists tend to put relatively more emphasis on long-term growth than on fighting recession?

Sphinxa [80]

Answer:

The correct answer is C. standard of living is ultimately determined by long-term growth.

Explanation:

The long-term path for economic growth is a fundamental issue of the study of the economy. The increase in the GDP of a country is usually considered as an increase in the standard of living of its inhabitants. Over long periods of time, even small annual growth rates, can have a significant effect. Thanks to its conjugation with other factors.

An annual growth rate of 2.5% would lead to GDP doubling over a period of 30 years. While an annual growth rate of 8%, it would lead to the same phenomenon in a period of only 10 years. Example: Some countries like Asian tigers. When a population increases to see improvements in living standards, GDP has to grow faster than that population. This analysis seeks to understand why there are very different rates of economic growth in some regions of the world.

8 0

3 years ago