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3 years ago

Indicate the effect each account has on retained earnings. (increase, decrease, or no effect)

Business

1 answer:

mojhsa [17]3 years ago

5 0

Answer:

Decrease:

a)advertising expense

c) Insurance expense

d) Salaries & Wages Expense

g) Utilities Expens

Descrease:

e) Dividends

Increase:

b)Service revenue

f) Rent revenue

Explanation:

The retained earnings accumulates the net income of every year.

As net income is determinate like:

revenues - expense = gross profit

expense will make this difference lower and therefore not beign able to help you These are the changes for:

adv expense

service revenue

insurance exepense salaries and wages

Dividends will also decrease RE as they represent a disribution of the accumualted earnings in favor of the stockholders

Finally revenues increase it as they make net income to increase as well.

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A financial ratio by itself tells us little about a company since financial ratios vary a great deal across industries. There ar

Sergio [31]

Answer:

When doing time trend analysis for financial ratios we can know how a company's ratio's have changed over time or if they have remained the same, so for example if a company's current ratio was less than 1 a year ago and is 3 now it means that the company was not very liquid a year ago but since then has made changes because of which it is liquid now, so we can see how a company has performed over a certain period of time.

On the other hand peer group analysis tells us how a company is performing compared to other companies in the same industry. For example if our cement company has a profit margin of 7% but the industry average is 15% we know that our company is doing something wrong or different as compared to the industry and we can look into it.

Explanation:

3 0

3 years ago

Sox Corporation purchased a 30% interest in Hack Corporation for $1,525,000 on January 1, 2021. On November 1, 2021, Hack declar

Serjik [45]

Answer:

$1,200,000

Explanation:

SOX Corporation purchased a 30% interest for $1,525,000

On November 1, 2021, Hack declared and paid $1,100,000 million in dividends

Hence, Carrying value = $1,525,000 - 30%($1,100,000)

Carrying value = $1,525,000 - $330,000

Carrying value = $1,195,000

Net loss given during the year reported by Hack is $4,000,000

Hence, Net Loss of SOX is $4,000,000 * 30%

Net Loss = $1,200,000

Therefore, the net loss to be recognized in the Income statement is $1,200,000

3 0

2 years ago

Failure to adequately plan for retirement can result in

frutty [35]

I believe the answer is 'D. Additional Taxes'

Hope this helps.

5 0

3 years ago

All About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent y

Tju [1.3M]

Answer:

B. Decrease $19,000

Explanation:

The computation of the amount affect the operating income is shown below

But before that first we need to find the new operating income

Total operating income for Cat Food $280,000

Less: Fixed costs for Dog Food ($52000)

Add: rented per year $26000

New net operating income $254000

Now decrease in net operating income is

= operating income - new operating income

= $273,000 - $254,000

= $19,000

3 0

3 years ago

Ace Co. prepared an aging of its accounts receivable at December 31, 2014 and determined that the net realizable value of the re

Papessa [141]

Answer:

uncollectible accounts expense 28,000

Explanation:

the aging of the accounts receivable is 600,000

AR unadjusted 650,000

We need to adjust by 50,000 to get the net realizable value

allowance: 68,000

written off (46,000)

uncollectible expense X

year end 50,000

68,000-46,000 + uncollectible = 50,000

uncollectible = 50,000 -22,000 = 28,000

5 0

3 years ago