1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rosijanka [135]
3 years ago
14

Savor Co. had $100,000 in accrual basis pretax income for the year. At year-end, accounts receivable had increased by $10,000 an

d accounts payable had decreased by $6,000 from their prior year-end balances. Under the cash basis of accounting, what amount of pretax income should Savor report for the year?
a. $104,000b. $84,000c. $116,000d. $96,000
Business
1 answer:
Sladkaya [172]3 years ago
8 0

Answer:

B) $84,000

Explanation:

Since accounts receivable increased by $10,000, it means that the cash basis pretax income is $10,000 lower than the accrual basis pretax income. The company sold the goods or services but it hasn't received the cash them yet.  

Since accounts payable decreased by $6,000, it means that the cash basis pretax income is $6,000 lower than the accrual basis pretax income. The company acquired debt in year 1 but it paid it during year 2, therefore it used cash during year 2 to pay for debt that corresponded to year 1.

If we add both negative adjustments; (-$10,000) + (-$6,000) = -$16,000

$100,000 - $16,000 = $84,000

You might be interested in
Which of these companies exemplifies the globalization of markets? a. The clothes of Sea Shell Fashions, a U.S.-based company, a
kondaur [170]

Answer:

c. Fluffy Pillows, a U.S.-based pillow company, sells the same pillows worldwide.

Explanation:

Globalization of markets occurs when different markets in the world are integrated and merged into just one market when similar tastes, preferences, norms, convenience and values are identified which facilitate a gradual change in culture towards the use of similar commodities.

The the sale of the same pillows worldwide by the U.S.-based pillow company, Fluffy Pillows, is a good example of globalization of markets .This is because the company has been able to integrate and merger all the pillow markets in the world to just one and has therefore facilitated a gradual change in tastes and preferences for its pillow making the use of the same pillow possible worldwide.

I wish you all the best.

7 0
3 years ago
Read 2 more answers
Becky only eats out at Macaroni Grill and eats out 3 times per month. She receives a raise fro $31,900 to $33,500 and decided to
ololo11 [35]

Answer:

Since elasticity is 6.4, a positive figure,it is normal good and the fact that it is greater than one means it is elastic,hence option A is correct

Explanation:

The formula for income elasticity of demand is given as:

/(new quantity-old quantity)//(old price+new price)/2)/(New income-Old income)/(old income+new income)/2)

New income=$33,000

Old income=$31,900

New quantity =5 times

Old quantity=3 times

Hence=(5-3)/(3+5)/2)/(33500-31900)/(31900+33500)/2)

Elasticity=6.45

6 0
3 years ago
A company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a
tatiyna

Answer:

C. II and III

Explanation:

These are the options for the question

I Filing

II Coordination

III Qualification

A. I only

B. II only

C. II and III

D. I, II, III

The Securities and Exchange Commission (SEC) can be regarded as an oversight agency of U.S. government, which responsible for regulation of securities markets as well as protection of investors. civil actions can be taken by SEC against lawbreakers, they aworks hand in hand along with Justice Department on criminal cases. For a company to register under them , there must be Coordination and Qualification. It should be noted that company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a State by Coordination and Qualification

5 0
3 years ago
Indicate the effect of each transaction during the month of October 2016 and the balances for the accounting equation after all
Nikolay [14]

Answer:

Test answer

Explanation:

Please delete that answer

5 0
3 years ago
How can a business meet customer needs​
san4es73 [151]
Bring in new products or services, introduce deals and sales, help local charities
7 0
2 years ago
Other questions:
  • ​DeShawn's Detailing is a service that details cars at the​ customers' homes or places of work.​ DeShawn's cost for a basic deta
    8·1 answer
  • Which form of investment has the most amount of risk involved?
    12·2 answers
  • ​Smokey's Sandwich Shoppe paid​ $3,000 for a 2minusyear insurance policy on March​ 1, 2018. The accountant forgot to make any ad
    9·1 answer
  • Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year
    6·1 answer
  • The selling price of a product is $8,000. The cost and hassle involved in buying the product is $175. The benefit received from
    14·1 answer
  • During 2017, Ecuyer Industries reported cash provided by operations of $794,000, cash used in investing of $686,000, and cash us
    10·1 answer
  • How could a line of credit negatively impact a business?
    12·1 answer
  • Project teams are formed to Multiple Choice take on "one-time" tasks that are often complex and require input from members with
    10·1 answer
  • A 13-year, 6 percent coupon bond pays interest semiannually. The bond has a face value of $1,000. What is the percentage change
    6·1 answer
  • How has the timing of the transition to a free-market economy been used to partially explain the great difference in inequality
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!