Answer:
b. It may be used to estimate inventories for interim statements.
Explanation:
As we know that
Gross profit = Sales - the cost of goods sold
By doing the inventory valuation through the gross profit method, it estimated inventories for interim statements as these statements are covering the financial information that is less than a year so that the proper analysis could be made and in this, no auditing is required.
Therefore, for interim statements, the gross profit method is required.
A strategic alliance is a partnership in which two or more companies (often from different countries) join together and share the risk and costs in order to undertake a major project. Although the parties still operate as separate entities they have a partnership to accomplish their goals. These are mutually beneficial to all involved, collaborating together, but maintaining their own business allows them to both succeed.
Answer:
b. $325,000
Explanation:
The current assets are the assets that are likely to be converted to cash within 12 months. These include cash, inventory, receivables, prepaid expenses etc.
Given;
Inventory = $84,000,
Long-term Debt = $125.000;
Common Stock $60,000;
Accounts Payable $44,000;
Cash $132,000,
Buildings and Equipment $390,000:
Short-term Debt $48.000:
Accounts Receivable $109,000,
Retained Earnings $204,000 Notes Payable $54.000:
Accumulated Depreciation $180.000
Total current asset = $84,000 + $132,000 + $109,000
= $325,000
Answer:
c. Depreciation $1,000
f. Property, Plant and Equipment $12,000
Explanation:
Tom's Grocery purchased 5 new cash registers which amount $2400 each. They have useful life of 5 years. Using straight line depreciation the annual depreciation charge will be $2,400 / 5 which is $480 per year per cash register. There are 5 cash registers so total depreciation expense will be $480 * 5 = $2,400 per year for 5 registers.
The registers are bought on August 1st, 2013 and the year end is December 31st, 2013 there are 5 months, the depreciation expense will be prorated based on the months.
$2,400 * 5/12
$1,000.
Answer:
The correct answer is letter "A": Are amounts owed to suppliers for products and/or services purchased on credit.
Explanation:
Accounts Payable is the amount of the total invoices currently awaiting payment by the company. These invoices are from suppliers of products and services that have recently been delivered. They are usually due within 15, 30 or 45 days after receiving the invoice from the vendor.
