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satela [25.4K]
3 years ago
7

Flip Flop, Inc. treated interest on uncertain tax liabilities as interest expense and penalties as part of selling, general and

administrative expenses in the prior year. How can Flip Flop treat interest and penalties this year
Business
1 answer:
borishaifa [10]3 years ago
3 0

Answer:

Flip Flop Inc can still treat Interests as Interest expense and treat penalties as Fees, dues, and subscriptions.

Explanation:

Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings – bonds, loans, convertible debt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal amount of the debt

Penalties can be categorized under deductible expenses called Fees, dues, and subscriptions.

Levies and other fees paid to an accountant or bank; memberships fees to professional organizations, subscriptions to industry publications and funds paid as penalties are all deductible.

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Lidell Inc. budgeted production of 48,000 personal journals in 20Y6. Each journal requires assembly. Assume that three minutes a
mote1985 [20]

Answer:

Direct labor cost= $31,200

Explanation:

Giving the following information:

Production= 48,000 units

Standard time= 3 minutes per unit

Rate= $13 per hour

First, we need to calculate the number of hours required:

The proportion of minuted per hour= 3/60= 0.05

Number of hours= 48,000*0.05= 2,400 hours

Now, the direct labor cost:

Direct labor cost= 2,400*13= $31,200

7 0
3 years ago
Match each type of tax with an example of its use.
babunello [35]
Hey how you doing lollipop you doing hope answer 20%
6 0
2 years ago
Read 2 more answers
Usually, most of an adult's income comes from
Zigmanuir [339]
JOBS ARE THE SOURCE OF INCOME
5 0
2 years ago
The inventory turnover measures:
pashok25 [27]

Answer:

The average number of times inventory is sold during the period.

Explanation:

Inventory turnover by definition is the relationship between inventories and the cost of goods sold by a firm. It measures on average, how many times the inventory was restocked and sold in the operating period.

A higher number usually suggests a healthier operation cycle for a business.

It is measured by,

Inventory turnover = Cost of goods sold / Average inventory

Option 1 and Option 3 are related to the performance of accounts receivables. Option 3 is the closest to above mentioned definition. Option 4 is only measuring the inventory clearance time.

Hope that helps.

7 0
3 years ago
Presented below is information related to Lexington Real Estate Agency.
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Answer:

Oct 1

DR Cash............................................................................$20,000

CR Common Stock.........................................................................$20,000

Oct 2. No entry required

Oct 3

DR Office Furniture .....................................................$2,300

CR Accounts Payable................................................................$2,300

Oct 6

DR Accounts Receivable.............................................$3,600

CR Service Revenue - Realty services...................................$3,600

Oct 27

DR Accounts Payable ..................................................$850

CR Cash .......................................................................................$850

Oct 30

DR Salaries Expense ....................................................$2,500

CR Cash ..........................................................................................$2,500

3 0
3 years ago
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