Answer:
B is the correct option
Explanation:
Inventory is the most important asset of a business. It is the finished goods used in the production which a company owns. On the balance sheet, it is divided current assets as it serves as a buffer between manufacturing and order fulfillment. If an inventory is sold carries the cost transfer to the cost of goods sold (COGS) category. It is categorized as raw materials, work in progress and finished goods. Raw materials are the materials required to produce a good. work in progress inventory is partially finished goods waiting for the completion and sale. Finished goods are the products which are complete and ready for the sale.
Answer:
4. Under the imposter rule, Connie will be held liable.
Explanation:
AN IMPOSTER RULE is a legal principle affirming that an impostor’s endorsement of a negotiable instrument is not a forgery. Imposter refers to a person who engages in deception under an assumed name or identity. The impostor rule makes an indorsed check effective if the drawer was induced to issue the check by an impersonator of the payee.
The impostor receiving the check may indorse it at the drawer's bank. Hence, the rule makes the drawer of the instrument responsible for the loss because the bank accepted the endorsement in good faith. The imposter rule is based on the assumption that between the bank and the drawer, the drawer is in a better position to prevent the loss.
Answer:
Answer is option A, i.e. True.
Explanation:
The National Response Framework is a regarded as a comprehensive guide to deal with various emergencies and disasters that may threaten the normal ongoing process of a nation. This guide provides all the details regarding the prevention, protection, response,, and recovery from different types of dangerous situation that might adversely affect the well being of the nation.
Answer:
The correct option is (b)
Explanation:
Accrual refers to income or expense that is accrued (service is delivered) but cash is not received in the current period. In accrual accounting, revenue is recorded at the time it is accrued irrespective of the time period it is received.
In this case, recording revenue that will be received in future is an example of accrual.
Answer:
a) diluted earnings per share = 0
Explanation:
Diluted earnings per share (DEPS) is a recalculation of the basic EPS. The difference between DEPS and EPS is, EPS represents the current position of earnings per share. No changes in number shares and/or earnings in the future are incorporated in the basic EPS.
Whereas DEPS is a representation of not only the current position of earnings and shares but also includes the commitments an entity has already made whose occurrence may result in an increase/decrease in the amount of earnings and/or number of shares. For example, in the question Culver Company has issued 10-year convertible bonds which right now have no impact on basic EPS but if in the future these bond holders exercise their right of conversion, this would result in an increase in number of ordinary shares hence decreasing/diluting the basic EPS. The entities use DEPS to show shareholders the impact of such commitments on the basic EPS to improve their decision making.
So in 2017 none of the bonds were converted therefore no diluted earnings per share is calculated in 2017.
If all of the bonds were converted in 2017 the DEPS would have been calculated as follows:
The formula for calculating DEPS is as follows;
DEPS = (Net income + interest savings) ÷ number of ordinary shares + increase in ordinary shares as a result of conversion.
Tax savings as a result of conversion=$128400 ($2140000×6%). Because if bond holders convert into ordinary shares then Culver company will not have to pay them interest and hence the amount of interest is saved.
Increase in ordinary shares upon conversion= 29960 ($2140000÷$1000=2140 bonds. Each bond is convertible into 14 shares therefore, 2140×14=29960).
Now Lets calculate DEPS as follows;
DEPS = ($296000+$128400) ÷ 91000+29960
DEPS =$424400÷120960
DEPS = $3.5