Answer:
Profit and loss are directly linked to the amount of money the company is spending to run its business -- its operating expenses. So changes in operating expenses naturally affect owner's equity.
Answer: The answer is 1950000
Explanation:
✓ Goods in transit on December 31, 2008:
Goods amounting to 100000 will be added into purchases of the year-end because they have already been sold as risk and rewards have been transferred to the Barlow that is goods have been physically dispatched to the Barlow. Hence this will increase accounts payable by 100000.
✓Goods in transit lost:
These words will also be included in the purchases and accordingly in the accounts payable irrespective of the fact that these have been destroyed. These goods were dispatched to the Barlow and therefore risk and rewards also been transferred hence purchase is done from Barlow's perspective.
So:
Total accounts payables are as under
Opening balance: 180000
Goods in transit reached next year:100000
Goods in transit lost:50000
Total: 1950000
Answer:
C. Leniency Error
Explanation:
It is the tendency to give favorable ratings that are generally more lenient than true performance. In this case the manager does this to avoid conflict.
The answer is mostly True.
The total inventory can be calculated by adding the initial or beginning inventory which is equal to $600 and the cost of goods sold, $1,400. That is,
T = $600 + $1,400
T = $2,000
Then, we subtract the ending inventory of $800 from the calculated value.
S = $2,000 - $800
S = $1,200
Hence, the answer to this item is the first choice.
