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kotegsom [21]
3 years ago
8

Once a company has prepared an adjusted trial balance it is ready to prepare financial statements. Which financial statement is

prepared first, second, then third?
a. First the income statement is prepared, then the retained earnings statement is prepared, finally the balance sheet is prepared.
b. First the balance sheet is prepared, then the retained earnings is prepared, finally the income statement is prepared.
c. First the income statement is prepared, then the balance sheet is prepared, finally the retained earnings statement is prepared.
d. First the retained earnings statement is prepared, then the balance sheet is prepared, finally the income statement is prepared.
Business
1 answer:
Sloan [31]3 years ago
8 0

Answer:

A

Explanation:

There is a sequence of preparing statements of financial statements because some statements use information from other statements of financial position. The income statement does not require information from any other statements. The retained earnings need information from income statement to calculate current retained earnings. The balance sheets require information from statement of retained earnings(retained earnings for this period).

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Flauer [41]

Answer:

Inventory would be 1, 768

Explanation:

2,000  goods

 +200  freight-in (A)

  -400  returned goods

 <u>   -32 </u> discount (B)

1, 768 net amount for inventory

<u>Notes:</u>

(A) The freight-in will be included in the inventory, as is a cost needed to have the inventory in the company's possession and be ready to use or sell.

(B) goods x discount rate

net goods 2,000 - 4,00 return = 1,600

discount for payment within 10 days 2%

Discount on purchase: 1,600 x 2% = 32

8 0
3 years ago
Which of the following is an essential characteristic of enduringly great companies? They undergo continuous change. They are so
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Answer:

The answer is (A) They undergo continuous change.  

Explanation:

To remain competitive in today’s world, a company must be willing to continue changing according to what the market currently needs and will need in the future. When a company remains stagnant, it would be outpaced by its competitors. Most of the household names that we commonly encounter maintains a spirit of continuous improvement – and we can encounter this from the innovative product they choose to make, better customer experience, or improvement in internal business process.  

7 0
3 years ago
Washington has an extensive collection of baseball cards. He wants to know how much his mint condition, rookie-year Hank Aaron c
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<u>Explanation:</u>

It is recommended by some to determine a card's current market value of by determining whether the card has been professionally graded by the Professional Sports Authenticator, if yes, then one can check up the value on the Sports Market Report (SMR).

However, the Hank Aaron card is Estimated to have a PSA 9 Mint Value of $17,500.

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3 years ago
The Typhoon Resort, which has 100 rooms, has currently been experiencing an occupancy dip to a 60.00% level. The current rack ra
BlackZzzverrR [31]

Answer:

the current total contribution margin = 100 x 60% x ($80 - $20) = $3,600 per day

scenario 1: $10 discount

$3,600 = 100 x ?% x ($70 - $20)

$3,600 = $5,000 x ?%

$3,600 / $5,000 = ?%

occupancy rate = 72%

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$3,600 = 100 x ?% x ($72 - $20)

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5 0
3 years ago
An investor will choose between Asset Q with an expected return of 6.5% and a standard deviation of 5.5%, Asset U with an expect
Alexxx [7]

Answer:

The investor will prefer asset U. So the correct answer is option D

Explanation:

To choose between these stocks, we will calculate the coefficient of variation (CV) which is used to assess the risk per unit of expected return. As most people are risk averse, we assume that the investor is risk averse. We will calculate the CV for all three investments and the stock having lowest CV will be selected.

<u>Coefficient of Variation (CV)</u>

Coefficient of Variation =  standard deviation / expected return

<u />

Asset Q = 5.5% / 6.5% = 0.846

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Asset B = 6.5% / 8.8% = 0.738

Thus, asset U has the lowest CV and the investor =, being a risk averse, will prefer asset U.

7 0
3 years ago
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