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3 years ago

Match each situation below to two applicable reasons that require an adjustment to be made.

Business

1 answer:

defon3 years ago

4 0

Explanation:

1. Revenue has been earned and liability has been fulfilled

The transaction date of the payment is a month before the date for which the tickets are booked. Hence, creating a liability for the company. The payment has been made in advance. But in the present month the liability of the advance payment received is fulfilled. Hence the liability generated last month fulfilled.

2. Revenue has been earned and asset has been acquired

The work performed in regard to the advertising campaign is completed by the company for which the revenue is due from the party for which the work is done. Hence resulting in the increase in revenue and increase in the asset as accrued revenue.

3. Expense has been incurred and liability has been incurred

The payment of an expense is due, resulting in the increase in the expense and creation of a liability. The bill received in the period of the current month for the duration of the current month for which the services has been provided. The mandatory payment is to be done in the coming month.

4. Expense has been incurred and asset has been used up

The benefits of the asset of the company is used up for the payment of the expense resulting in the increase in the expense and decrease in the value of the asset as the benefits added value to the asset once the benefits are used the value of the asset is decreased.

5. Revenue has been earned and asset has been acquired

The company completed the project and the payment for the project is to be received in the next month, resulting in the increase in earned revenue and the creation of the asset accrued revenue. The payment to be received in the coming month hence the accrued revenue account will shoot up with amount of payment to be received.

6. Revenue has been earned and liability has been fulfilled

The company issued gift cards and earned the revenue, but the redemption was done in the next month. Hence, creation of the liability as the advance payment is received but when the redemption is done the liability of the advance payment is discharged.

7. Expense has been incurred and asset has been used up

8. Expense has been incurred and liability has been incurred

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Answer:

$170

Explanation:

As we know that

Total cost = Total fixed cost + total variable cost

The total fixed cost would remain the same whether the production level increases or not but the case is not the same as the total variable cost. In total variable cost, the output will change as per the production level changes

When output was 4 units per week, The total cost would be

= Total fixed cost + total variable cost

= $100 + $70

= $170

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3 years ago

Which one of the following statements is not true? Group of answer choices Total fixed costs remain the same regardless of volum

Andre45 [30]

Answer:

The correct answer is letter "D": Total variable costs decrease as the volume increases.

Explanation:

Total fixed costs are those that do not vary when the volume of production changes. However, unitary fixed costs change with fluctuations in production. As production increases, unitary fixed costs decrease and if production decreases unitary fixed costs increase.

Also, unitary variable costs remain the same in front of changes in output but total variable costs change directly proportional to variations in production. It means if the volume in production increase so will total variable costs and vice versa.

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3 years ago

Suppose that we observe two comparable properties that have each sold twice within the past four years. Property A sold 24 month

Elina [12.6K]

Answer:

0.475% per month

Explanation:

value of property A 24 months ago = $500,000

current value of property A = $425,000

total decrease in value = $500,000 - $425,000 = $75,000 or 15%

monthly % decrease:

1.15 = (1 + r)²⁴

²⁴√1.15 = (1 + r)

1.0058 = 1 + r

r = 0.00584 = 0.58% decrease per month

value of property B 48 months ago = $575,000

current value of property A = $465,000

total decrease in value = $575,000 - $465,000 = $110,000 or 19.13%

monthly % decrease:

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⁴⁸√1.1913 = (1 + r)

1.0037 = 1 + r

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3 years ago

Kim's Bridal Shoppe has 10,200 shares of common stock outstanding at a price of $36 per share. It also has 215 shares of preferr

vitfil [10]

Answer:

26.43 %

Explanation:

The Capital Structure is based on the Market Weight of the Sources of Finance as shown below :

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Equity market value = 10,200 × $36

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Weight of Equity = Equity value / Total capital

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Weight of Equity = 26.43 %

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