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kiruha [24]
3 years ago
11

If a company incorrectly records cash received for services to be provided in the future with a debit to Cash and credit to Sale

s Revenue, how will this error affect net income for the current period?
A. Net income will be too high in the following period.
B. Net income will be too high.
C. Net income will not be affected by this error.
D. Net income will be too low.
Business
1 answer:
choli [55]3 years ago
3 0

Answer:

B. Net income will be too high.

Explanation:

Revenue will be overstated instead of liabilities. overstatement in revenue will lead to the higher net income in current period. On the other hand liabilities are overstated. Entry to cash is accurately done and it will not effect due to this error. So the correct option is B. Net income will be too high.

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You are given the following information for Watson Power Co. Assume the company’s tax rate is 22 percent. Debt: 12,000 6.1 perce
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Answer:

You are given the following information for Watson Power Co. Assume the company’s tax rate is 22 percent. Debt: 12,000 6.1 percent coupon bonds outstanding, $1,000 par value, 27 years to maturity, selling for 109 percent of par; the bonds make semiannual payments. Common stock: 450,000 shares outstanding, selling for $63 per share; the beta is 1.14. Preferred stock: 19,500 shares of 3.9 percent preferred stock outstanding, currently selling for $84 per share. The par value is $100 per share. Market: 5 percent market risk premium and 4.9 percent risk-free rate.What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

8 0
3 years ago
Emergency funds are important because they ____________.
WITCHER [35]

Emergency funds are important because they B. are available when they are most needed, such as after a job loss. Emergency funds that are funds set aside for an emergency, out of the options above, this is when they are most needed. It is important to have an emergency fund set up because you can not prepare for what may happen and when, but having the funds prepared incase something does allows for much less stress.

4 0
3 years ago
Read 2 more answers
n 2018, Jose paid the following amounts for his son to attend Big State University: Tuition $6,400 Room and board 4,775 Books 77
MatroZZZ [7]

Answer:

$11,947

Explanation:

The following expenses shall be allowed as qualified higher education expense to Jose for the purpose of his son Qualified tuition program

Tuition Fees                                                   $6,400

Room and board                                           $4,775

Books                                                             $772

Total expenses to be allowed                      $11,947

7 0
3 years ago
You work for a marketing agency advising a client considering whether to drop prices during an economic downturn. The client, a
Thepotemich [5.8K]

Explanation:

1- One of the pieces of advice I could give the customer about lowering the balance sheet price is that this could generate different interpretations for the potential consumer, as there may be a perception that the price reduction of the product occurred due to the loss of product quality in relation to competing products.

2- There are other effective strategies for managing an economic crisis in addition to a direct reduction in the retail price, such as the psychological price strategy, which are the marketing techniques used by salespeople so that consumers respond emotionally to the product, and not a logical way, which generates a perception of greater benefit for the consumer, which can lead to increased sales without having to lower the price of the product.

6 0
3 years ago
Beginning inventory, purchases, and sales for Item Zeta9 are as follows:
Taya2010 [7]

Answer:

(a) The cost of goods sold on October 24

: $552

(b) The inventory on October 31: $532, (with 19 units)

Explanation:

The company uses a perpetual inventory system and using the first-in, first-out (FIFO) method for Item Zeta9, the answers are explaned with the help of the attached file:

The Cost of goods sold on October 24: $300+$252=$552                              

Download xlsx
5 0
4 years ago
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