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11111nata11111 [884]
3 years ago
6

Colman Company reports ending inventory in year 1 of $25,000 instead of the correct amount of $20,000. The effects of this error

include:
Year 1 ending inventory is understated and year 1 cost of goods sold is overstated

Year 1 ending inventory is overstated and year 1 cost of goods sold is understated

Year 1 ending inventory is understated and year 1 cost of goods sold is understated

Year 1 ending inventory is overstated and year 1 cost of goods sold is overstated
Business
1 answer:
Elodia [21]3 years ago
6 0

Answer:

Year 1 ending inventory is overstated and year 1 cost of goods sold is understated

Explanation:

The amount of ending inventory is increased by $ 5000 so the ending inventory is overstated and the cost of goods sold is understated as an amount of additional $ 5000 is deducted from it. For better understanding we consider the following

Opening Inventory $ 15000

Purchases $ 50,000

<u>Ending Inventory $ 20,000</u>

Cost Of Goods Sold = $ 45,000

Suppose we write $ 20,000 as $ 25,000 we get

Opening Inventory $ 15000

Purchases $ 50,000

<u>Ending Inventory $ 25,000</u>

Cost Of Goods Sold = $ 40,000

So we see that Year 1 ending inventory is overstated and year 1 cost of goods sold is understated  by an amount of $ 5000

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Angelo's father says he's going to "live off his Social Security" once he's ready to retire. What is Social Security, and how do
Orlov [11]

Social Security is a program and agency that provides benefits. Angelo's father can apply for the benefits for retirement to receive an income every month after he retires.

In the United States, the Social Security Agency provides benefits to citizens, these benefits are indirectly paid by citizens through taxes. This includes:

  • Survivor benefits.
  • Benefits for retirement.
  • Benefits for disability.

When Angelo's father refers to Social Security, he is likely referring to the benefits for retirement the Social Security Agency provides. This is a great benefit because Angelo and his family will receive money every month that will replace his wage as a worker.

This means he can use this benefit to pay for basic expenses such as housing, food, education, etc. without being an active worker.

Learn more in:  brainly.com/question/2460666

5 0
2 years ago
Startup firms can struggle to gain lower prices from rivals, but FreshDirect seems to have found several ways to gain lower supp
chubhunter [2.5K]

Answer:

D. FreshDirect shares warehouse space with farmers and livestock producers

Explanation:

FreshDirect does not share its own resources with the supplier in order to get a lower rate. If it does that , he would be practicing a business model which has different entities attached to each other to work for greater goal.

Here, this is not the case. FreshDirect tends to look for out of the box ways to lower supplier cost but "FreshDirect shares warehouse space with farmers and livestock producers" is not one of those ways.

8 0
3 years ago
If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be
Arlecino [84]

Answer:

Less than average total Cost

Explanation:

Average total cost can be estimated as

(total fixed cost as well as variable costs )/ ( total units produced). It has a great impact on how a business is going to set up the price of their products. Marginal cost is can be regarded as alteration in total cost as a result of increase in unit of quantity produced. It should be noted that If a firm's average total cost decreases as the firm increases its output, the firm's marginal cost must be Less than the average total cost

8 0
3 years ago
What are the three legal forms of business organization? What are their advantages and disadvantages?
algol13

Answer:

There are three legal forms of business organization that are sole proprietorship, society and corporation.

Explanation:

<u>Sole proprietorship:</u> A company that has only one person and works for its own benefit. In almost all the world there are a large number of sole proprietorships which are usually small companies, the most common being for example a personal teacher, a bicycle workshop, etc.

Advantage:

- The owner receives all profits and profits.

- Independence

Disadvantages:

- There is unlimited liability so that all income can be used to pay debts.

- The owner performs several activities.

<u>Company</u>: company that has two or more people. In general, partnership companies are larger than sole proprietorships. The most common companies in society are finance and insurance.

Advantage:

- Raises more funds than sole proprietorship.

- Greater intelligence and administrative ability.

Disadvantages:

- The company dissolves when a partner dies.

- Difficulty to liquidate or transfer the company.

<u>Corporation</u>: The property (shares) of a corporation are its shareholders. Shareholders have profits by receiving dividends that are distributions of the earnings of the shares.

Advantage:

- They have a limited liability, they don't lose more money than they invested.

- The company has a long life.

Disadvantages:

- Higher organizational costs than in other business forms since they need to hire staff.

- Subject to greater government regulation.

4 0
3 years ago
Find an equation of the line slope 2/3; through (-6,3)
Minchanka [31]
If you are given a point and the slope, use the point-slope formula.
m = 2/3
(x₁, y₁) = (-6, 3)

y - y₁ = m(x - x₁)

y - 3 = 2/3(x + 6)
y - 3 = 2/3x + 12/3
y - 3 = 2/3x + 4
y = 2/3x + 1

The equation of the line is y = 2/3x + 1.

4 0
3 years ago
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